BiggerPockets

Would most of your short sales be in Modesto?

contact me gphproperties@gmail.com or 941-809-8422

Do you have possible buyers lined up? Do you think you can find some?

Located Manteca Ca
built 1986 1560 sq ft living space lot over 12k sq ft
1st loan 350k 2nd 41k
sale date feb 1st
comps on several homeprices within 1 mile radius quite a few for 123k to like 135k and a few 150k 160k 170k the lower ones in price are comparable to this home

I must be missing something here!!!!

This property has 2 loans 350k and 41k for a total of 391k.

But the home prices in the area are only at 170k at best with 123k more likely.

How do you think people are going to get a 400k loan on a home only worth 123k?

Even most short sales get done at a low of 50% which is about 200k which is still well above the 123K value.

jawsette dont what you are talking about this home is to be acquired thru a short sale and fair market value on this home right 130k. The seller has loand totaling the $390k has nothing to do with getting the shortsale approval I beleive this house will go for 150k or 160k I think we can the bpo to come in at about 100k repairs and other things ti influence the bpo and if we can acceptance on 75% of the bpo asking price this will be a sweet deal somebody want to help me

Yes thank you I am aware of the new law and that is why i no longer charge or intend to do the modification proccess. I charge just to prepare their paperwork and the bank deals directly with the client and i help them as need be they pay for services rendered as i just charge to prepare modification papework only. On the shortsale note I haven't got that far that is why i am asking for some guidance here and whoever helps me will be compensted from my deals.

Yes thank you I am aware of the new law and that is why i no longer charge or intend to do the modification proccess. I charge just to prepare their paperwork and the bank deals directly with the client and i help them as need be they pay for services rendered as i just charge to prepare modification papework only. On the shortsale note I haven't got that far that is why i am asking for some guidance here and whoever helps me will be compensted from my deals.

Yes thank you I am aware of the new law and that is why i no longer charge or intend to do the modification proccess. I charge just to prepare their paperwork and the bank deals directly with the client and i help them as need be they pay for services rendered as i just charge to prepare modification papework only. On the shortsale note I haven't got that far that is why i am asking for some guidance here and whoever helps me will be compensted from my deals.

I am actually developing a list of cash buyers in Modesto right now.

Here are some things to think about. I am assuming your planning on wholesaling.

Think with the end buyer in mind. Are these houses for a fix and flip or to hold and rent. What is being purchased by other investors. Or are your planning to sell retail to a homebuyer.

Make sure you have a grasp of the value. Are these houses in a an owner occupied area or mostly in a rental area. The value can vary because of it. Make sure to estimate the repairs correctly.

Line up your buyer list. Nowadays cash buyers or buyers with hard money make it easier. It reduces the financing challenges on the end buyers side. Although it still can be done with conventional financing. An end buyer with FHA is challenging and would require dealing with seasoning issues.

Do you have a short sale negotiation team. If not I have one in modesto for you.

Get the property under contract, and make sure that you have any appropriate ca addendums. Check out the short sale forum for california investors. It has great insight to whats working.

Once you have the contract, you and your team should be coordinating with your re attorney, title co and negotiation team to submit the offer and begin the processing. Full disclosure of your intent should be mentioned.

While at the same time you need to market the property and secure the end buyer with the appropriate cash, hard money. Conventional if the lender is flexible with title and seasoning issues.

Once your negotiation team gets the approval from the lender of the seller, hopefully the counteroffer is not too challenging to close.

Once all conditions are clear on your A-B side, hopefully by then you would have executed a B-C contract with the proper addendums with full disclosure of your intent.

You want to schedule the closing dates to be the same day. If your strategy is to double close, you should probably use transactional funding, which is 1 day funding. I have seen 2-10 and more as well, but its expensive.

At the closing you will want to make sure that your title company is experienced with these types of transactions, or you will have delays.

You will also want to make sure to consult with your re attorney on your processes and contracts

Any questions hit me up. I have some investor partners out there in the central valley. Be more than happy to help.

Although I rarely disagree with Jawsette, I have to disagree with the 50% of loan balance suggest. In Arizona, California, and Florida, I have negotiated several short sales that far exceeded 50% of original principal balance. However, with that said, I would recommend partnering with someone who has experience in negotiating short sales because, as Jawsette has correctly stated, it can be very difficult to convince a lender to Choose a short sale over an REO.