short sales

8 Replies

i really really really want to take a course on short sales my friend fellow investor and mentor says i dont have the personality for it cause i aint much of a paper pusher and i here it is paper pushing intensive but i cant help myself it just sounds great but i want to take a course ive asked some of my friends and they dont know cause they dont short sale so i was wondering if someone could recommend a good boot camp on short selling

There is a lot of paperwork involved. If you are not good at chasing up lost paperwork and bank employees why focus there? Consider outsourcing that aspect if you do move forward in this direction.

You also have to be good with people who are in emotional distress.

Check you state laws to see if there are specific rules for dealing with people who are facing foreclosure. Some states have rules to protect the sellers while holding off the investors. Some laws are better than others.

John Corey

Are there good short sale books anyone can recommend?

You need to find one that really addresses your local laws. Our local REAI (CAREI) puts one on every few months that deals with doing them and has all the specifics for our Colorado laws. I know other people put them on, too, but I don't think they cover Colorado laws, and are going to end up getting people in jail.

Jon

Jon,
I'm not sure why they're called short sale; so far, they seem to take a while. I understand every state has its own set of rules. My partner and I have been working on a few out of state short sales and thought there was something at a book store that could be acquired. I will contact a few of my REIA members and find out if there is something available. I will do the same with the out of state transactions. In the mean time, if there is a book that provided general short sale do's and don't, tips and ticks; we'd be happy to review it.

Thanks for your reply.

Marc

I think you're right, they aren't quick at all. I have read a couple of books on pre-foreclosures, one by Thomas Lucier and another by Frankie Orlando. Both touch on short sales, but both are more general. But then, most of what you have to deal with, offers, contracts, contingencies, etc., isn't really specific to short sales.

When I'm looking for information on a specific topic, I usually get on Amazon and do some searching. I read the reviews and see what people say. Those reviews usually give a pretty good insight into the contents and coverage. You can then make a list of half a dozen or so that seem interesting. Go to a book store and see what they have. Buy whichever ones they have that actually look interesting (I believe in supporting brick and mortar bookstores, because I love browsing in them.) Order the rest on amazon, or better yet, on the used book side. Some you'll read cover to cover. Some will seem more and more redundant and you'll just skip through them. Who cares. If you just get one little tidbit, its worth it. Books are a dirt cheap investment. Seminars will cost your 100 or 1000 times the cost of a book, and consume a lot more time. Don't bother looking for the perfect book, read a bunch of them.

Jon

Ditto on the books. There isn't a Holy Grail in Real Estate Investing. There are very few that come close. Even with those, you'll still have to understand your situation and tailor it to that. I've read a lot of book and will continue to do so. The moment I think I know it all, will be the moment my business starts to depreciate.

The reason I asked about a short sale book, is because out side of "gurus", I haven't found one available on a book shelf.

Well, I'll continue to read and be an active participant in forums like BiggerPockets.

Marc,

Short sale - the lender is being shorted; the pay off comes up short compared to what was owed; getting the short end; less than was expected.

Like any deal where you are the one going to lose money you tend to drag your feet in the blind hope it might get better. You really do not to trust the investor who is buying when they tell you how bad things are. Fraud, misrepresentation and conflicts of interest all are possible.

If it was fast and easy more investors would be competing with you.

John Corey

Originally posted by "REI":
Short sale - the lender is being shorted; the pay off comes up short compared to what was owed; getting the short end; less than was expected.

John,

Thanks for that example. It does underscore the Short in Short Sale. As an investor, I try to make deals a win/win situation. There are many reasons people sell at a discount, and many ways to assist in every situation. I do understand we all invest for the bottom line, but I believe in karma and make great attempts to balance things when dealing with people. Unlike people, most banks (institutions) look at the situation differently and may not be as favorable.

Marc

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