All Forum Posts by: Bill Patterson

This is an old case from a year ago and for some reason has just resurfaced again. I commented on this in a LinkedIn discussion, too. Here are the main points:

McElaney (listing agent) and Natera Already had an offer for $132,500 and inserted a lower offer to the lender, intending to keep the difference. THIS WAS THE FRAUD THAT THE COURTS FOUND. Had their offer to the lender been in place and was being negotiated BEFORE the $132,500 offer, there would be no fraud!

As members of BOS Asset Management, LLC the agents had a right to purchase the property as long as it was disclosed (which if I remember correctly without re-reading the whole case again, it was)

The lender is not the client of the listing agent, the seller is.

The agents have NO FEDUCIARY DUTY TO THE LENDER

The highest offer is not always the best offer. The best that can be done for the seller is to get their short sale with no deficiency.

One offer at a time is all that should be negotiated. The lender has no right to ask or be notified of other offers that may be held as back up or as an “end buyer”. Who ever has a contract to purchase is the one that has the right to have his offer accepted, countered, etc. before any other offer can be considered.

Bill

There are many different shades of yellow....Some may be good and others not so good! Also, the neighborhood, style of home and area of the country have a lot to do with color choice and what adds to curb appeal and what detracts from it.
Bill

In Michigan, if a tenant disputes an Itemized List Of Damages in writing within 7 days, we must file in Small Claims Court to keep the deposit. If that is the case or similar in New Mexico, you may have to do this. If he is out of state, he probably won't show up and you will get a default judgment. The problem is that you or your designated agent will need to file and show up for the hearing.
Bill

There are some pretty good looking Realtors out there that may be looking for a husband! But then again...that is a partnership that you will want to really do your due diligence on before signing the contract!
Bill

It's all about curb appeal! If the paint does not look like new, I would at least paint the trim and seriously consider painting the whole house. It is not too expensive to make it look like new if you are using the same color. If the color is not good in your opinion...your potential buyer probably won't like it either.

As far as the roof goes, look for "curl" in the shingles or missing or broken shingles. If you see any of these, call a roofer for an evaluation.
Bill

Curt is 100% correct! Allowing someone to use your MLS access is a fine and/or suspension from using the MLS. No one uses my access except me!

If you don't want to get licensed, join the Board of Realtors and get your own MLS access, you can look for a Realtor to work with you. Be prepared to show the Realtor that you are serious about working with him by signing a Buyer's Agent Agreement and providing proof that you have or can get the funds to purchase. You are asking him to do a lot of work and no one likes to work for free!

Good luck! Real Estate Investment is great!
Bill

Michael,
There isn't really a "pecking order". If the first offer falls apart, the seller can choose from any or all of the back up offers that may be out there. A smart Realtor and seller may not just take the highest offer, but take one that is most likely to close. They look for few if any contingencies, financing in the order of cash, then conventional, then FHA, etc. If you are comfortable doing inspections now, during the back up period and make sure you are qualified, your only contingency may be that the property appraise at your offer price. That would make your offer stand out from any others.

Good Luck!
Bill

Buying the REO "as is" by an investor or rehabber nets the lender less if their inspection detects leaks. There is less damage than if the property was not winterized at all. So, the cost of doing so (even an inadequate winterization) is better than doing nothing. Like Jason said, often the winterization is done after some of the damage is done. It is hard to blow the water out of the lines when there are already splits in the piping letting the air out! Also, the water meter should be disconnected, so there is no chance of a valve leaking by and getting water into the system.

Buyer beware!
Bill

I "don't" doubt it at all!

This thread should be "required reading" for BP posting! Spell check, too! There is another topic that I have been commenting on and one person in particular, offers that he is an expert in his field and that 99% of the others have it wrong. It would be much easier to take him and his advice seriously if his grammar and spelling were better.
Bill