Dec 23 2008
Looking For A Real Estate Broker Who Will Do Short Sales
Hey again out there real estate newbies,
Well, this may not relate to you, but I happen to be dyslexic, so it really helps me to go over material more than once, which I took the time to do over the weekend and then again today.
Actually Mr. Alexander has two more pretty awesome programs with his platinum course, which simply took me a little more time to really understand. If you want more details on this course visit here.
One program shows you how to take advantage of the current real estate market by approaching a bank about what is called a short sale. A short sale is where the owner has gotten behind on their mortgage payments over 90 days, and the bank starts what is considered the foreclosure process.
The owner now has the chance to sell the home, but cannot make any money on the deal. However, the sale will save the owner’s credit from having a foreclosure hit on it. I believe the foreclosure process takes several months, but I am only making a slightly educated guess at this, and do not know this for certain.
I hope to learn a lot more about this process, as I have made an appointment with a real estate broker for tomorrow at lunch. I actually saw her commercial on TV Friday night, and there were several reasons I picked her. One, she is bilingual, and we have a local bilingual market. Two, her ad said she works with investors, so I am hoping she is willing to think outside the box, and will consider creative finance options. Three, besides being a broker, she is also a real estate agent, and I could delegate things like open houses to her if she turns out to be a good fit.
Right now my plan is to ask her about her current FHA, conventional and sub-prime loan programs. Even if you are new to real estate, I am assuming these terms are not new to you. But if they are, I bet you can guess that FHA is the government structured (now pretty much owned) loan program: that conventional loans are for people with really good credit: and sub-prime are loans for people with not so good credit.
Once I get a good idea of the programs she currently has, I am going to tell her I have access to funds (via Mr. Alexander’s program – no qualifying either – you don’t have to show your credit report to use these funds, they are available to you for flipping short sales just because you are a member) where I can go into a bank and bid on their short sale properties and I can offer cash for them, which is apparently a big deal. Banks seem to like cash, imagine that. It is said that my cash will beat any other offer on the table in most cases.
Through Mr. Alexander’s course, we are able to work with a title company who is very experienced in doing a simultaneous close, where you go to close on your deal with the bank (what is called – the A to B transaction) and then close with an end buyer for a profit (what is called – the B to C transaction), and a nice one if you structure your deals right.
Per training, Mr. Alexander tells us we can make offers to the bank for as low as .50 on the dollar (in some places even lower) and in distressed areas the banks are taking these offers. There is a charge for using the investor money to buy the property from the bank – 1% and a processing fee of I believe $300, which is the best I have seen. But this all comes out of the closing, so there is no money that comes out of your pocket.
I’ve gotten long winded, so I’ll try to report to you tomorrow on my meeting with the broker and I’ll also try to get back to you about the other program. It’s very, very cool.
Have a great night,
Lisa
