Where the rubber meets the road!

Foreclosures, Short Sales, Tax Foreclosures
1

I’m new to short sales, but have been a real estate investor for years. I have read 50+ pages of topics on this BB and you guys and gals are excellent! However, I see so many variations of what to offer for a short sale! Several say ‘offer 50% of market value’ and others have formulas which vary greatly! My request is for several (many), who have completed successful short sales in the last several months reply with their proven formulas that do work in todays scenario!
Keep up to great dialogue!

2

This is quite possibly an impossible question to answer. There is no one way that is better than another when determining what to offer the lenders. Each property will have it’s own unique situations surrounding it so you will have to be flexible when making your offer.

I figure what to offer based on several factors. I take the FMV of the property in ‘AS IS’ condition. Then I start subtracting any expense I would encore from the purchase of the short sale payoff to my selling to the end buyer. Once I have that number I round down to the nearest tenth.

But this can changed depending on the situations surrounding the property. If you are unsure your best bet is to post the numbers and scenario of the property in questions and someone here will answer.

GooD Luck! :beer

3

Thanks Matt,
Tom

4

Hey Tommy…

I agree with Matt, like everything in life, it would be real easy if there were some hard and fast rules to negotiating these things but there simply aren’t as every deal is TRULY unique…

that said, i start by first looking at the comps, their avg. selling time and and how recent they have sold and then i compare to the subject property and make price adjustments for the condition & repairs, along with a time to sell differential (i give each day a dollar amount based on the interest charged on the mortage) and i then subtract these things from the present value of this property to come up with my offer price. always try and make my offer reasonable for the bank but one that represents a fairly good deal in the marketplace to the family who will be purchasing it…

5

Thanks TXssking