I am starting a short sale service to offer to
investors. I’m thinking something to the affect of
$500 up front per lien and X amount at the end if short sale is
successful. Would investors be interested in this type of service?
That would involve me dealing with the bank and investor only and
investor dealing with seller in getting paperwork. Perhaps an
additional fee for dealing with seller. Also would have some sort of
online user/pw service for investors to login and see activity on
the short sale as I would place up a log of every phone call, faxed
document, etc. I have 13 going right now in my local area alone.
Also could be paid as a referral fee from a local real estate agent
if you listed the property.
Would people be interested? I am planning on beginning this this week.
I think this might work for a local market. But in the one short sale I’ve done, there was a lot of interaction between me and the seller, and them getting to know and trust me was a big part of the success. I don’t think it would work well if you weren’t right there in the town, and if you weren’t working pretty hard and getting to know the PEOPLE involved (not just the $$ etc.).
I know many individuals that do just this in the Chicagoland area. However, they only get paid if the short is successful. If you are the short sale expert, why would someone pay you up front if you don’t get the home shorted and accepted?
Think about removing the up front fee and just making it more incentive based. Just like being an investor, we don’t make money unless we do the deal.
I agree, and have actually decided to go the route of no up front fees, at least at first, to get the ball rolling. The problem with no up front fees is getting the investor to make sure they are taking everything seriously, and stay on top of things such as securing financing, etc. If there is money vested it is more of a guarantee that the investor is serious, more motivated to get the deal closed.
Nothing worse than a speculative newbie investor sending over a short sale only to have it accepted and then the deal dies because they have a $-50 checking acct and 480 credit score with no buyer.
I am doing no up-front fees but am stating in the contract that if the deal is not negotiated to meet the investors highest price they will pay, then I have the right to refer the deal to a local RE agent to receive a referral fee for doing the work.
Well, if you need a Real estate broker in Southern California, I’ll work something out with you. I can do listings in San Diego, Orange and Riverside County.
Cool, do you do a lot of short sales? If possible we could even work something similar out where I could work with the seller and you could list the property after price has been negotiated, I have a cool database program I have created to keep track of all short sale information, print out daily reports for myself and workers to stay on top of things.
Let me know!
Chase
PS. If you’re not, I am always looking for ways to solicit better to foreclosures in other areas of the country and could pay or work a way to get the lis pendens in that area. I could also advertise to them and short them and then use you as the local RE agent.
I am an independant broker and I own my own real estate a loan company. I run into so many short sales, you wouldn’t believe.
What you propose is fine, but I can’t find a way to do a double escrow, so You’ll need to either find the funds to close out one escrow while we close out the other with the new buyer or educate me. E-mail me and we’ll discuss this.
Hmm…is what you’re proposing comperable to what www.shortsalecenter.com does? Is that kind of your model but on a smaller scale? It could be promising.
Yes but I believe some of these places charge large up front fees or a much larger fee than I anticipate charging. My goal was to make more on volume that per deal…
You could also refer short sale deals that aren’t bought by the investor to other investors. Ones you know that close. Depending where the deal is, I might be one such person.
I invest nationwide, just certain areas aren’t for me.
Yes I am thinking of finding local investors to send me the preforeclosures list and paying them for it, letting me do the marketing and the working with the homeowner and then refering the deal back to them.
Trying to get as many people around the country to do this as possible. If anyone is interested please let me know!
I’m a realtor in central PA. Currently I work for a single client finding him property that he can fix and flip or wholesale with little more than paint and carpet. I get a small fee at settlement on the buy side and then the listing for the sale.
I’m open to similar arrangements for investors looking for opportunities in the heart of Amish territory. I’m negotiating one SS transaction with the bank now and will be presenting offers to two different homeowners tomorrow.
My question to you is do you know how to handle the shortsale process once they have declared BK 13 and they just want to sell and put all of this behind them?
The short is no because I don’t like dealing with yet another attorney/trustee whose sole purpose in life is to muck up the process. There are too many other, easier opportunities out there to spend time with that one.
Frankly, less than 1% of the foreclosures I run into have already filed BK.
As far as I know you can still do a short even after chap 13 filing. I have done it before by contacting the trustee and the filing attoney and submitting the petition for court approval. Hope this helps…