Strategy For Riding This Market To The Bottom

Dominoes · 03-12-2009, 08:36 PM

Most people probably would not recommend I share the best strategy imaginable for this market. There are tons of short sales hitting the market every day and they take 60-90 days to close. The short sale addendum allows the buyer to back out at any time prior to the bank accepting the write-off. So.... go out there get the best short sale you can find. Keep looking for the next 60-90 days and if you find a better deal, cancel the first one and go after the next one. These prices are falling on a monthly basis here and when they stop falling you'll be left with a heck of a deal. If you benefit from my approach, just send a $10 check to the American Cancer Society as appreciation.

SWGB · 03-12-2009, 09:56 PM

Yes, I'm sure your name wouldn't quickly make the rounds of local Real Estate agents.

Miss Kitty · 03-13-2009, 04:30 AM

Cramer...is that you?

doGooD · 03-13-2009, 02:08 PM

Maybe advise: if you are going to do this, stick with one realtor and be upfront about what you are doing. I see a lot of realtors work hard to make a short-sale happen - it is a lot of work, and those folks deserve to be paid for the services they provide.

Franny · 03-13-2009, 02:16 PM

Quote:

Originally Posted by Dominoes

Most people probably would not recommend I share the best strategy imaginable for this market. There are tons of short sales hitting the market every day and they take 60-90 days to close. The short sale addendum allows the buyer to back out at any time prior to the bank accepting the write-off. So.... go out there get the best short sale you can find. Keep looking for the next 60-90 days and if you find a better deal, cancel the first one and go after the next one. These prices are falling on a monthly basis here and when they stop falling you'll be left with a heck of a deal. If you benefit from my approach, just send a $10 check to the American Cancer Society as appreciation.

Absolutely. Always enter a clause in the contract to protect your buyer. There are too many good deals out there that you would not want a buyer to miss out on if they are trapped in a short sale contract waiting on bank approval, imo.

AAbsolute · 03-13-2009, 08:17 PM

Quote:

Originally Posted by doGooD

Maybe advise: if you are going to do this, stick with one realtor and be upfront about what you are doing. I see a lot of realtors work hard to make a short-sale happen - it is a lot of work, and those folks deserve to be paid for the services they provide.

What exactly does a Realtor representing a Buyer do after presentation of the Offer to the Seller's Agent?

SHELLY · 03-13-2009, 10:49 PM

Quote:

Originally Posted by AAbsolute

What exactly does a Realtor representing a Buyer do after presentation of the Offer to the Seller's Agent?

...then it's Miller Time.

.

AAbsolute · 03-14-2009, 06:49 AM

Quote:

Originally Posted by SHELLY

...then it's Miller Time.

.

That's what I've heard, but I'm not a Realtor. Are you?

Lynnie · 03-14-2009, 09:36 AM

Quote:

Originally Posted by doGooD

Maybe advise: if you are going to do this, stick with one realtor and be upfront about what you are doing. I see a lot of realtors work hard to make a short-sale happen - it is a lot of work, and those folks deserve to be paid for the services they provide.

Not to mention, they might only be paid 1% (or less) on a short sale by the bank.

30ashopper · 03-14-2009, 12:05 PM

Quote:

Originally Posted by doGooD

Maybe advise: if you are going to do this, stick with one realtor and be upfront about what you are doing. I see a lot of realtors work hard to make a short-sale happen - it is a lot of work, and those folks deserve to be paid for the services they provide.

Quote:

Originally Posted by Lynnie

Not to mention, they might only be paid 1% (or less) on a short sale by the bank.

If I were completely honest I'd have to admit I'm not feeling very compassionate toward the realty industry these days.

Lynnie · 03-14-2009, 02:55 PM

Quote:

Originally Posted by 30ashopper

If I were completely honest I'd have to admit I'm not feeling very compassionate toward the realty industry these days.

I know what you're saying. But, it's a complicated equation at best and lot more involved than just the realtors.

AAbsolute · 03-14-2009, 06:05 PM

Quote:

Originally Posted by doGooD

Maybe advise: if you are going to do this, stick with one realtor and be upfront about what you are doing. I see a lot of realtors work hard to make a short-sale happen - it is a lot of work, and those folks deserve to be paid for the services they provide.

What exactly does a Realtor representing a Buyer do after presentation of the Offer to the Seller's Agent?

SHELLY · 03-14-2009, 08:33 PM

Quote:

Originally Posted by AAbsolute

I'm not a Realtor. Are you?

...

...2nd runner-up for Realtor of the Year....or ....I slept in a Holiday Inn last night.

.

Bobby J · 03-14-2009, 10:48 PM

Quote:

Originally Posted by AAbsolute

What exactly does a Realtor representing a Buyer do after presentation of the Offer to the Seller's Agent?

Hope that the seller signs the deal so you can get a contract. Once the short sale contract is in place you assist in putting together a complicated short sale package that goes to the lender. Lately, we have turned these contracts over to a title/lawyer to have them negotiate the short sale so we can go back to the field to get another one.

AAbsolute · 03-15-2009, 07:32 AM

Quote:

Originally Posted by Bobby J

Hope that the seller signs the deal so you can get a contract. Once the short sale contract is in place you assist in putting together a complicated short sale package that goes to the lender. Lately, we have turned these contracts over to a title/lawyer to have them negotiate the short sale so we can go back to the field to get another one.

Do banks routinely put a discount factor to Realtor commissions?

livingwell · 03-15-2009, 05:08 PM

Quote:

Originally Posted by Bobby J

Hope that the seller signs the deal so you can get a contract. Once the short sale contract is in place you assist in putting together a complicated short sale package that goes to the lender. Lately, we have turned these contracts over to a title/lawyer to have them negotiate the short sale so we can go back to the field to get another one.

how many of these deals have you put together that closed?

Bobby J · 03-15-2009, 11:17 PM

Quote:

Originally Posted by livingwell

how many of these deals have you put together that closed?

Quite a few. You just have to have a buyer that hangs in. The bank will eventually wake up.

Bobby J · 03-15-2009, 11:17 PM

Quote:

Originally Posted by AAbsolute

Do banks routinely put a discount factor to Realtor commissions?

They typically will pay 5%.

LoveTheBeach2 · 03-16-2009, 05:41 PM

Quote:

Originally Posted by Dominoes

Most people probably would not recommend I share the best strategy imaginable for this market. There are tons of short sales hitting the market every day and they take 60-90 days to close. The short sale addendum allows the buyer to back out at any time prior to the bank accepting the write-off. So.... go out there get the best short sale you can find. Keep looking for the next 60-90 days and if you find a better deal, cancel the first one and go after the next one. These prices are falling on a monthly basis here and when they stop falling you'll be left with a heck of a deal. If you benefit from my approach, just send a $10 check to the American Cancer Society as appreciation.

A few thoughts (and reasons to work w/an experienced realtor):

- Buyers can back out of any contract, including short sales, but that doesn't necessarily mean that you are entitled to get your earnest $ back

- When you put an offer on a short sale - for all intents and purposes - the seller can no longer market the property. It is not the seller's fault that lenders are slow to act AND the foreclosure clock is still ticking for these folks. If you're not serious about buying then you're just ****ing with people at a point in their life when they really don't need that.

- If you are serious about treating real estate investing like casual dating (this house will do until a cheaper one comes along), I suggest that you focus your search on bank-owned properties. You can typically get a better "deal" than a short-sale and a faster response on your offer. Another plus - since your bailout tax dollars might be paying the salary (and bonus!) of the decision maker at the bank - you don't have to feel guilty if you've wasted their time!

AAbsolute · 03-16-2009, 06:50 PM

Quote:

Originally Posted by LoveTheBeach2

A few thoughts (and reasons to work w/an experienced realtor):

- Buyers can back out of any contract, including short sales, but that doesn't necessarily mean that you are entitled to get your earnest $ back

- When you put an offer on a short sale - for all intents and purposes - the seller can no longer market the property. It is not the seller's fault that lenders are slow to act AND the foreclosure clock is still ticking for these folks. If you're not serious about buying then you're just ****ing with people at a point in their life when they really don't need that.

- If you are serious about treating real estate investing like casual dating (this house will do until a cheaper one comes along), I suggest that you focus your search on bank-owned properties. You can typically get a better "deal" than a short-sale and a faster response on your offer. Another plus - since your bailout tax dollars might be paying the salary (and bonus!) of the decision maker at the bank - you don't have to feel guilty if you've wasted their time!

Nice take on casual dating..

traderx · 03-16-2009, 07:28 PM

Quote:

Originally Posted by LoveTheBeach2

A few thoughts (and reasons to work w/an experienced realtor):

- Buyers can back out of any contract, including short sales, but that doesn't necessarily mean that you are entitled to get your earnest $ back

- When you put an offer on a short sale - for all intents and purposes - the seller can no longer market the property. It is not the seller's fault that lenders are slow to act AND the foreclosure clock is still ticking for these folks. If you're not serious about buying then you're just ****ing with people at a point in their life when they really don't need that.

- If you are serious about treating real estate investing like casual dating (this house will do until a cheaper one comes along), I suggest that you focus your search on bank-owned properties. You can typically get a better "deal" than a short-sale and a faster response on your offer. Another plus - since your bailout tax dollars might be paying the salary (and bonus!) of the decision maker at the bank - you don't have to feel guilty if you've wasted their time!

Thanks for the tip.

Lynnie · 03-16-2009, 09:04 PM

Quote:

Originally Posted by Bobby J

They typically will pay 5%.

Holda, holda, holda, holda, holda - they are paying 5%? Well, get ready for some added competition cause in GA, realtors are lucky to get 1% and many lenders are only paying a flat fee. I am not a realtor; however, I know many who can't sustain themselves on 1% or flat fee in GA.

Odd because there are more foreclosures in FL - seems GA would want to prevent going in this direction on a short sale opportunity......and, you can forget about RESPA being adhered to with regard to lending. I've lost many to the current lender demanding a pre-approval from their own institution...fine line and I've called a couple on the carpet.

In 2008 realtors and lenders' business in GA was down 60-80% and it's tracking a higher number for 2009 (as compared to 2007). Real estate isn't moving. Really a shame with rates as attractive as they are. With the past mini-refi boom of mid-Dec to Jan/Feb, 1/2-2/3 of all apps were declined: lower credit scores, more revolving debt, lower incomes, reduced property values.

Rates will probably hold for a bit, then start to creep back up.

Babyblue · 03-16-2009, 09:21 PM

I can tell you as a former banker these bank's don't know what to do other than get TARP funds and hold on.

Lynnie · 03-16-2009, 09:25 PM

Quote:

Originally Posted by Babyblue

I can tell you as a former banker these bank's don't know what to do other than get TARP funds and hold on.

Especially, after the assets are re-evaluated. Just think: if there hadn't been so much book cookin, the sub prime debaucle might have imploded in 2005 as opposed to 2007 and we'd be two years closer to recovery! Just a thought!

Babyblue · 03-16-2009, 09:46 PM

This is what the banks are doing. Take a non performing asset and keep in on the books to show Capitol. Apply for the TARP funds, get the funds, then sell the junk have the cash from the gov. hold on to what you have, core deposits, then when the market corrects, back in business and make money on the sale of the junk and the cash from the gov. Look at C they are already turning the corner. It is a no brainier when you have the gov. inject fresh cap. I wish I was a CEO again!

Lynnie · 03-16-2009, 09:53 PM

Yes, and if WE know what's going on, then why can't Capitol be a little more stern in dolling out tax payer $$? This is most likely one of the variables as to why a short sale decision takes so long. The bank approves and signs = they devalue an asset.

I wish you were a CEO again, too. And, I wish I was your CFO.

Babyblue · 03-16-2009, 10:16 PM

Lynnie, let's start a bank. It will be a money maker, It is a sure bet!

Lynnie · 03-17-2009, 09:25 AM

Quote:

Originally Posted by Babyblue

Lynnie, let's start a bank. It will be a money maker, It is a sure bet!

I'm all in!!

Ready whenever you are......I know a couple of others interested, too!

Cheers~~~~

scooterbug44 · 03-17-2009, 09:33 AM

Quote:

Originally Posted by LoveTheBeach2

- When you put an offer on a short sale - for all intents and purposes - the seller can no longer market the property. It is not the seller's fault that lenders are slow to act AND the foreclosure clock is still ticking for these folks. If you're not serious about buying then you're just ****ing with people at a point in their life when they really don't need that.

Really sums it up for me - those karma points are a biatch!

Miss Kitty · 03-18-2009, 06:05 AM

Thanks Lynnie and Babyblue! Y'all jsut helped me understand more about these TARP $$ and what the banks would naturally do! No Brainer, indeed!

Tell me when you open your bank...I am in!

Lynnie · 03-18-2009, 11:09 AM

Kitten, why don't you come join!

BKL Bank, N.A.