Short sales!!

I know a lot have change in real estate investing world over the years. What adjustments had to be made with short sale now days? Do you guys handle the negotiating yourself (short sale specialist) or does a lawyer or agent have to handle the process. With closing on short sale if I was to flip to a investor do I have to use transitional funding to close the A-B deal? I also heard that you have to sit on the property for 90 days until you sale it. What are you guys facing today with short sales?

Philip Mahonie

First you will need EM to submit a offer on a short sale. If you planning on flipping you need to buy with your own money or pay a transactional funder to buy for you.

I can only speak for my state of California. The days of option contracts and short sale flips via double escrows are almost all gone. Now a days you will need to close and some buyers need 90 day title seasoning. However, you still can make a lot of money on short sale flips. Also, most of the time you need to work with a brokerage to make it work.

In California the banks are holding the good proprieties and only releasing a few low end proprieties. I notice in California Bank of American is selling to a select few that will buy $20 million plus and those must open account at B&A and deposit the funds in their bank.

That is true, even I looked into the commercial REO market as well. They bundle all this out of state crap among their California assets.

However, I believe the original poster was referring to short sales and not the REO market.

The commercial REO market is very strong in California.

I am currently an agent and want to become an investor can i work with the same real estate agent i work for? Or is this an ethics violation?

I don’t understand your question. You can do real estate investing, but whatever you do you, you have higher liability because you are licensed. So as long as you are working in a capacity as a principal in the transaction and there is no agency relationship between you and any party in the transaction, you should be fine.

Short sales are not always the best option though and you have to go through a lot of considerations before just landing on a short sale.

A real estate agent is the only way to get a short sale done unless you have a direct contact.

Sad thing is that most people who wants to sell their properties in a good deal end up getting their deals on a short sale. That is why getting a credible agent would surely get them to where they want.

I think it depends on how your looking for your deals. While RE Agents are good some don’t have the knowledge one would have that has exclusively handled note sales and short sales. Certain banks not only do short sales but also do note sales. They also can’t seem to get a clue in some cases as to what the hell they really are doing.

I being a RE Pro will be honest outside of purchasing a home and having taking over another sub to I haven’t purchased any properties. But that does’t mean I can’t find them. It’s just finding the credible investors that are supposed to be out there.

The other day here in St. Charles MO I found a home listed for $85,000–Unhappy w/ the pic I said lets see what zillow has sometimes they’ll have more pics. A benefit of Zillow is it will give you the property value the way it sits…In this case they say the value is $142,000. It says the property needs rehab work but have a feeling no one would be able to tell unless they looked at it…Which I’m local and can possibly arrange.

If the actual value upon repair is $142,000 most HML will help with 70% which is $99,400 and again they say Pur Price is $85,000 depending on the repairs one may get them to go lower. Depending on who the actual seller of the property is may determine the best way to handle such a case.

If anyone thinks they may be interested in something like this let me know I could also try to find out how long in the area of home location you might expect your hold time to be unless you purchase to buy and hold vs sell.

While off topic somewhat I also found a commercial hotel here in the St. Louis area that as an investor may be interesting as they are selling for $2.8m and after expenses income is suppose to be $700,000 a year. Can’t help but think there are investors that may want more info on properties such as these. But with so many wanna be bankers who do u call? I just can’t help but think its not all about the note sales and short sales but income producing properties as well. If the paperwork on hotel is correct that purchase could pay for itself in years not 30 unless of course the investor wants it that way.

In the end, short sales are still part of the real estate market.