Is The Sky Falling with Short Sales - Part 2 of 2
Feb 8th, 2008 | By cboatright | Category: Short Sale Audio
Here you go…PART 2The information on this call is of
HIGH RELEVANCE to anyone in the
business of flipping houses or
doing short sales.
If you missed the email about Part
1, it was all about whether or not
the sky is beginning to fall with
short sales.
Part two starts off with taking
the “are simultaneous closings
really dead?” question, head on
by yours truly.
And this is gratis, folks — nothing
to sell. Just stuff you need to
know if you want to stay on top
of what’s current in the industry.
Please leave your thoughts in the
blog comments section like normal.
Remember… be a servant,
Cory Boatright
Loss Mitigation Specialist
www.ShortSaleFundamentals.com/blog
P.S. Please lift up the families that
lost lives due to the recent horrible tornado
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Awesome conversation. One that everybody is speculating on so it is great to have an expert to talk about it.
Thanks Cory, I thought there was a lot of great information on this call. I just want to say…it is refreshing that there is someone like your self who always wants to find a solution instead of heart aching (if you will) about a problem. I can appreciate a good discussion or debate and not BEAT A DEAD HORSE. You always try to put a positive spin and primarily focus on another way. Ultimately, if we focus on getting it done, there will always be a solution provided one way or another. At the same time, if we continue to think about the problem, that will be all we get is problems. I believe in the power of thought!
Hi MR Cory Boatright this is John Reynolds well Cory i listen part 2, it was Great but what if you dont have Title Co here were i live we use lawyer to do the closings here and they are not cheap either they charge a bout $ 150.00 per hour here so what should i do about it if the lawyer doze not know how to do this or will not do a simultaneous closing and is it going to be harder to do this if the bank want allow it either . Do you have list to were i can find private lender’s here in NC. besides hard money lender’s to close a deal fast.? That will lend you base the loan on the house not your Credit line in case you can not get a simultaneos closing done fast keep from loseing the deal if this was to happen in a spare a moment notice on a deal and do you see this happen soon about then trying to do away with the simultaneos closing in the future.? I hope not for my self and other’s that are trying to become a investor and student of yours and thank you for the info that you put out for us my God bless you and your wife i hope she is getting better greasytire@yahoo.com John
Hey Guys: I listened to both number 1 and number 2 and found them fascinating! You reall tried to present solutions to upcoming problems. (Real or not yet realized) and found it very refreshing. The sky is not falling here in georgia. Wieland Bros. Home just had a 10 day sale and made 50 million dollars. I would work 10 days for 50 million. (Ha, Ha, who wouldn’t) There are always solutions to potential problems and I appreciate how you approach them from all angles. Different states have different methods and problems, but search and learn to be a problem solver and you will do great like Shaun and Cory, et al. Thank You for all you guys do to help everyone. God Bless and may this be the best year you ever had. Richard
Cory, I bit my tongue after listening to part 1….just listened to part 2.
ARE YOU OUT OF YOUR FREAKIN MIND?????
Im going to cut thru all the crap and get write to what should have been the main points
1. simultaneous closings-
No, they are not illegal and no, the problem is not w the simultaneous close. The problem is with the simultaneous close and short sale together. (contrary to what was stated on call by your co-host)
BIG DIFFERENCE!!!!! This type closing has NOT been dying for the past three years as stated…….. but ABSOLUTLY POSSITIVLY is on its last breath now. Lets pull back the curtains hear and tell it the way it is. The underlying issue has to do with Title company’s liability and disclosure. The simultaneous close is not transparent to all parties and therefore distributes a load of liability to the end title company. THIS IS FACT. Also fact is…… there will soon be closing documents (all ready drafted and in polishing stage) that will be part of EVERY mortgaged closing that will require transparency across the boards… or no funding……effectively ending ANY last gasp from our favorite type of closing. A business plan that relays on a simultaneous closing to get paid is at best , wishful thinking and more bluntly, irresponsible.
Side bar: yes I know some are still squeaking by simultaneous closes……I would too if we could ……but you relying on it is like building your dream home on a frozen lake….when it thaws, and it will, you will drown.
2. land trusts- love them, have closed hundreds of properties with them, they are legal, ethical, honest……and your CRAZY INSANE to keep using them. WHY? They are the first red flag to go up when your title goes to underwriting….period. Why would you want any more attention brought to your already challenging transaction??? Numerous other solid ways to control transaction.
3. Is the sky falling????
Did this even get answered???? This is a legitimate question and not just for short sales, but for the entire investment industry.
I cringe going here in a forum but here we go.
Starting with the short sale. Are short sales more work today than yesterday??? Yes. DO they take longer?? absolutely…are buyers harder to come by?? You bet….so is the sky falling????
ABSOLUTLY NOT!!!!!!! And as matter of fact, even thought there has been more change and more volatility in this business in the past 8 months than I have seen in 8 years as a professional real estate investor….there is also more opportunity than I have ever see!!! The key however is to come clean on the reality of what is going on and adapt accordingly. It seems this industry spends more time trying to cheat for an upcoming test, then it would have taken to just study for the damn test in the first place. DROP THE CURTAINS……..
Start with the end here…..we are bin this business to get paid. So how do we get paid……better yet……whos going to pay us…WHERE IS THE MONEY COMING FROM?????? If your not clear on this, quite now or listen up…..
The majority of our deals we sell as a result of a short sale, barring real crappy condition properties, will be sold to owner occupants.
Why? excluding a few markets, investors will not pay us enough for our houses to make a profit. (this also means that trying to sell your LLC or assign beneficial interest as a way of transacting is all but a pipe dream. While im at it, absolutely positively DO NOT PUT and or assigns in your contract as part of buyer….
2 obvious reasons:
1. the short payoff will clearly state who the buyer is and state you cannot assign unless given written permission by the lender.
2. ALL CONTRACTS ARE ASSINGABLE unless explicitly stated otherwise….why be redundant and appear amateur?)
Now where was I……O’yea….Therefore, we have to understand what funding is available for our owner occupants so we can get paid………..
Investors need to look at where the end funding is going to come from for their properties.(and I will give you a hint, if your buyers are not hud backed, conforming loan buyers or privately funded, there not buying)
Understanding where the money is coming from will dictate what we need to do to close. Hint #2- study Fanny Mae underwriting guidelines- It answers a lot of the unanswered questions.
Know what a conforming loan is….its what your buyer needs to qualify for….. Why Fanny Mae??? THEY HOLD YOUR CARDS!!!!!
You will also learn why a fully funded, back to back double close WILL blow up……again not a good plan.
……and for anyone who may be whining at this point…….zip it!……this is rock solid advise your getting so appreciate it……besides, would you rather be RICH OR WRIGHT????……….I close deals, lots of deals…..tons of deals……and don’t rely on wishful thinking and marginal strategies to do so .
Id rather be rich!
On a final note, Cory, I don’t know who your co-host was on the calls but quite frankly, not impressed…..too much miss information.
You known I have a tone of respect for you and your contributions to this forum. This is solid in your face feedback for constructive discussion……
To the rest out you there, if you dig this short sale stuff…..YOUR IN THE RIGHT PLACE…..
The sky aint falling, opportunity abounds, the road ahead is looking pretty damn good……
…….and your already plugged into one of the best resources on the web for accurate, legitimate and effective advise…….
Cheers,
Patrick Precourt