Investor · Grand Rapids, MI · Member since 2012 · 224 posts · 40 votes
Never done a short sale before. I mostly do wholesaling. The owner owes $174k (and about 7k behind in payments). Bank says they'll work with him and have tried several times to renegotiate his mortgage but he just wants out. He says the bank would be willing to do a short sale, and his neighbor down the street in a similar house and debt said he did a short sale of his house for $140k and believes he can get the same deal, and offered it to me.
The house is in a VERY nice neighborhood and the town is where all the high income families live. The market is pretty hot for that area, and I suspect that I wouldn't have any trouble flipping it come spring/summer. Could use some paint and carpet, but otherwise the house has all high end stuff.
Never used a hard money lender before and I don't have a lot of skin to put in the game.
Investor · Grand Rapids, MI · Member since 2012 · 224 posts · 40 votes
12y
If I were to put it on the market right now I'd get $175k for it or pretty much what he owes aside from the payments he's behind on too. Does $140k short sale sound far fetched then? What would be more likely?
Real Estate Broker · TEMECULA, CA · Member since 2011 · 18 posts · 2 votes
12y
If you have a real estate licence use this as an opportunity to break into short sales. It sounds like a slam dunk and you should be able to double end the deal and earn a great commission.
Real Estate Broker · TEMECULA, CA · Member since 2011 · 18 posts · 2 votes
12y
Not sure about your market,but here in Southern CA the market does not have good enough margins to flip on short sales. The banks have stopped giving them away and are asking and getting full market value. Good short sale agents are able to sell these homes,providing a service for the seller's and earning a 6% commission.