I’m a new investor so please bare with me. Having said that, I have been reading most of your posts to avoid asking redundant questions. I have learned some very interesting things from you guys and I am thankful for it. This is really a great community to be a part of. I look forward to learning a whole lot more and what ever comes with it.
Okay, so I purchased some materials to educate myself on Real Estate Investing, particularly Short Sales. I did my share of marketing to people facing foreclosure and saw myself working on 10 files at one time. All properties belong to one person. I followed the formula I was taught and made my CASH offers to the bank. All were rejected. I made my MAO and those were rejected as well. Now what do I do?
Here is some background info on these files. The owner of these properties is a Realtor. I was asked to put this person as the realtor in my HUD 1 so that this person can get some $$ out of these properties. I (not knowing any better) accepted. The properties are condos and located in West Palm Beach, FL.
The 1st issue is that I live in NY and know nothing about West Palm Beach, FL. I took this to help a friend of a friend. You know how that goes.
2nd issue is comps in this area seem to be difficult to get because there have been no recent sales or perhaps I’m not doing this right. And the owner/realtor isn’t much help.
3rd, I then went to Realtors.com to see what listed properties where going for in that subdivision/area and found that most of them are in the short sale process as well.
4th, being a newbie and eager to jump into the market, I don’t have back up investors. Rather, a back-up exit strategy.
Being that I don’t want to give up (not the quiter type), beside I’ve worked very hard on these files, I come to you for suggestions.
I’m still in negotiations with the bank but my 70% ARV is not cutting it. All bank BPOs were done. Also, the owner/realtor tells me there are no repairs needed, but of course, I have no picutres of any of these properties to veryfy this (but I’m taking his word on it) (I now, I now, BIG MISTAKE). I did say I was a newbie. However, according to the Bank BPOs properties are in good/great conditions.
And, properties with comps of 60K are being listed for 39k as short sales in Realtor.com and my banks want 45K and above. Amounts owed on these properties? About 150-200K.
I don’t just want to say, “Sorry, I can’t help you” and walk away. That would be giving up and wouldn’t help me build my reputation. Besides sale dates are all in the next week or two.
I just want to find a solution and move on.
I thought about HML and then Seller Financing or Rent-to-Own. But I don’t know if the numbers will work, don’t know the area, and did I mention I live in NY?!!
Any suggestions would be greatly appreciated!!! :banghead :help
Sorry for the long post and thank you all.