Is it harder to get the short sale compleded it the house is in good condition? I am looking at one that does not need any fix up and she is going thru a diverce and can not afford it anymore. Is this worth my time?
Who told you that SS is Always on house in bad condition? Conditions of the property could be different from case to case, like that you described, with lady in divorce. You could get any deal when you submit a proper documents. There is a lot of suggestions about it on the forum. Just look for it, and good luck because any deal is possible with right approach
The assumption that ‘all’ short sale properties are in bad condition comes from two things. One being that you are always looking for anything that will decrease value in a property to give you better chances of convincing the lender the property needs work, there fore it should be reflected in their discount. The other is that generally speaking, when homeowners are in foreclosure they simply stop taking care of the property. They will not fix things when they break and they lose their sense of pride for what they have, because they will be losing it soon enough. So why bother taking care of the place? But these two things do not apply to every situation.
I had a situation recently in which the homeowners took very good care of the property. In fact, after a home inspection and 4 appraisals, there was absolutely nothing wrong with the property. It was in perfect condition. But I still managed to create a $150,000 spread from my discount to my end buyer. This just goes to show you how each property is different and that a short sale is possible on a property that has nothing wrong with it.
GooD Luck! :beer
Thanks. I normally work with flip houses that need plenty of repairs and I did not know if on a normal situation you would be able to get a better deal if it needed several repairs.
Thanks
Hello everyone…I’m still relatively new here but I hope I can offer some thoughts!
I have been a full time investor for over 9 years and have been acquiring property directly from banks and government institutions for several years now. You have to remember that you are solving a problem for these banks and/or institutions! BANKS DO NOT WANT REO!!
Banks are more than willing to pay you a “fee” for your services as long as they are “within reason”. My strategy has been to determine a minimum amount I am willing to make for negotiating any deal to make it worth my time and work the math backwards towards my offer price (including profit margins for rehabbers, etc. if wholesaling). If the property is in good shape (i.e. little material or labor costs for rehab) your offer should reflect that! Asking for a 70% PTV, or so, discount for a property in great condition will not necessarily fly (self fulling prophecy that banks won’t deal, are stingy, or whatever). Maybe offer 80% PTV instead?! Do the math and see where the numbers fall. Don’t be greedy! I use the same type calculator that the banks use in making the determination to either short sale a property or not. Having that type of technology helps a lot!!!
Hypothetical…which is better (to clarify my point)?
Submit a SS package to a bank with a realistic offer and double close the deal within 30 days and make $10K ($10K in 30 days)
OR
Submit a SS package to a bank with an unrealistic offer, spend 3 months negotiating and double close the deal 90 days after the process started and make $20K ($20K in 3 months)
Scratching the banks back and helping them with their problem vs. taking advantage of their situation will ALWAYS gain you more. Once you have gained credibility with the bank they will actually start calling you with deals! How cool is that! I hope this helps and makes sense!
“Don’t be greedy! I use the same type calculator that the banks use in making the determination to either short sale a property or not. Having that type of technology helps a lot!!!”
where would one aquire this technology ?? :rolleyes
I’m working with Chase right now on the Condo in Miami. In good condition. Homeowner owes $206K. BPO came up at $165K-$175K. I have a buyer for $154K 50/50 closing costs. I offered $120K (a little low, I know). Bank said today that they want $170K. :evil I’m in bad shape now… :help What to do now? :shocked
tell them you want the place for free but that will never happen. The house is only worth as much as someone is willing to pay for it. Offer $5 or $10k less than your highest offer on the property and tell the bank this is the most anyone is willing to pay. If they still refuse then they believe they can get more out of the property as an REO.
Make sure your documentation is in order that shows the value of the property. If the BPO was high, tell them to get a second opinion and present them with the doc’s showing why the BPO was high.
GooD Luck! :beer
Thank you, I will offer $144K :flush
I would like to see the numbers on this deal…It might turn out to be a good sub2 deal…If the numbers work and there is little work to be done to the place then you could take the property sub2 and lease option the property…Keep in mind the type of mortgage, monthly payment, and local rents. It could be possible to get a T/B with some $$ and get the mortgage current, make money monthly then cash out in the back end. Just an idea :guns