Hi I’ve been reading a lot of topics about preforclosure short sales. I’m interested in working directly with the bank in discounting REOs. I’m currently residing in Detroit, MI where there is absolutely no shortage of Foreclosures. I have a few questions to begin with:
What are the keys to writing a successful Short Sale Offer
How can you assign a Short Sale to an investor that you have lined up prior to closing?
I’ve heard about these types of things from people such as www.markijlal.com He has a MI Bootcamp, but I’m looking to get started in this business early I’m 18yrs old and I just don’t have the money to attend his bootcamp right now
I’m 27, and I feel that, the younger the better. I actually just proposed an offer to a young man (15 y-o) to come work for me this summer to earn-while-he-learns.
Okay I believe I answered your second question in another post but as for your first question I have been told to offer 40% of what’s owed on a first mortgage and 10% of what’s owed on a second, and that also depends on the area, the condition of the property, etc. I would suggest offering something absurd to begin with in an attempt to flush out what they are willing to take if you don’t know, and when they tell you what they are willing to take then step in and offer 80% of what they told you they would take and negotiate from there if you have to.
The offer from all that I have seen and read is not a science it’s an art so you have to kinda just start working and eventually you will develop the skill.
Thank you Ctally ;D I believe the same thing, the earlier the better! I just have to prove to my Father (Among many others) That real estate is not a scam, and that it’s a very lucrative business if done right
But yeah about making the offers, that sounds logical, I’ll see how that works
As for that offer that you made to the 15 yr old, If he isn’t ready to start I’m more than ready to! What time zone are you in? If possible could you just show me some of the deals that you’ve done, while in turn I show you some deals that I may like to pursue? Can I just listen in while you negotiate with the Loss Mitigation Dept to get a feel of how it’s done, etc? These forums are extremely informative, But what I’d really love is someone who has experience to give me just a little hands on Mentoring. And it sure would’nt hurt to learn while I earn either
Just let me know, I can do anything you need me to do.
I’m full of useful info but I am just starting myself, with barely a handful of deals under my belt. The youngman that I am trying to teach is a “underpriviledged” child that I got to know last summer through my daughter’s childcare center, he was their acting handyman to make some money over the summer, it’s a situation where if someone doesn’t step in right now he may be lost to the streets, he’s a great kid, very smart, but has not been able to see that there is a world outside of his immediate circumstances and seeing his potential I don’t want to lose him to the “world”; now what that means as far as you are concerned is that I am not ready to take on what you would need in a professional, regular, mentor; I don’t think I’m ready for the commitment, but questions or even some guidance from time to time I am definately available for, put me in your rolodex. I will send you my info in an email.
Can anyone explain to me, after contacting the bank for a list of their REOs and asking for their SS package, Is there any way I could talk to the the BPO? If its Bank Owned I wouldnt have access to the inside to meet them there unless it was listed with a realtor. If it isnt listed, I wouldn’t have any idea of what the condition of the inside is, and wouldnt be in much shape to attempt to influence the Brokers Opinion even if I was able to meet him/her there. And since im not much of a handyman, I’m not much for spotting things that are in need of repair except for the obvious (holes, paint, carpet). Is there anyway to get access to a property if its REO and unlisted, and are the odds of a successful SS when a realtor is involved slim? Also would I just fill out the HUD1 to the best of my ability w/ the info that the bank gives me (which may be limited)?
1st of all REO means Real Estate Owned the bank already owns the property they have been in foreclosure already. I don’t think that you can Short Sale this one.
2nd with Preforeclosure you once you have authorization from the owner you can sometimes have the BPO ordered before you submit the offer. You maybe can find out when they are going and try and meet them there. Make sure if you get to this point you find out what problems they see and then show them the problems that you see that they don’t have. Hope this helps Good luck
As far as the hud try and get help with this part it can kill the deal
Since SS is basically convincing a bank to accept less than what is owed on a property I was under the impression that you could do it with Bank owned properties too? Hmm, perhaps i’m wrong but I thought that since that bank is already in the hole for months and months of payments along w attorney fees and the like, that a SS would still be possible
It could be possible if it is in the redemption period. A lot of times if it is not then, they usually just list it with an agent. I’m not 100% sure so do further research. Try calling the bank and asking about a specific property and see where it gets you. It depends on the bank.
Alright sounds good, yeah in MI there is a 6month redemption period.
Also out of all of the Major Banks, which seems to be the most prone to accepting Short Sale offers? Are some harder than others
I haven’t done many but some are harder than others. It all depends on the rapport you build with the Loss Mitigator and the BPO the BPO is the most important and remember even if your offer does not get accepted. That does not mean they will not take an offer. Remember not to start at the maximum amount that you will go because it gives you no room to come up. Try and give a good offer the 1st time so hopefully they want come back. What percentage is that it all depends on the house and what you think. If you think they will they probably will.
u need to start the SS process somewhere in pre-foreclosure. it takes weeks and weeks to get it done in most cases, not after it is an REO. it has to begin and finish before the auction. that is when the homeowner still owns it and u need thier permission to talk to the bank. after the auction if the bank won the bid, it becomes an REO and that means they now are the owners and on the deed. u can then negotiate with them and maybe get a lower price. just submit your best offer and see what and iff they counter with.
