All Forum Posts by: Eric H.

Greetings BP Family,

Thinking out loud here and would like your feedback.

My buddy brought his 1st home in Dec '07. We all know what happened to the market after that. He purchased for 165k and has paid on time since then. Current value is approximately 65k in it's current condition. My question is could my buddy negotiate a short sale w/himself as the end buyer? He would have to miss a few payments before considering this. Arbitrarily, how many do you think he would need to miss for the bank to consider a short sale? Will the bank ask for proof of hardship? He has the 65k in cash but he doesn't think it makes sense to pay this mortgage payment every month for a house that is worth less than 50% what he purchased it for. Is this feasible guys? Have you all done it? Do you know someone that has done it? Should he just walk away from it and let it go into short sale/foreclosure? If bank is smart they will know that they will lose more money by going through with foreclosure versus shorting it to him, no? Will bank modify a loan this drastically if one can prove severe hardship?

Thanks in advance.

Sincerely,

Eric H.

@Rudy Munoz Great job on taking action!!! Now it's time to get creative.......Place a sticky note on the door with your name and number. Place a sign in the lawn with your number right next to the FSBO sign. Locate the owner's mailing address and send him/her a handwritten letter or postcard. You could try to identify any other phone numbers for the owner using a skip tracing program/software. Go and talk to the neighbors to see what information they may have on the owner. One of them may have an alternate number.

These suggestions should get you started in your search for that first deal.

I wish you the best!

Sincerely,

Eric H.

@Sharlene Macon Welcome to BP!!!

Deals are all around us. Great deals are all around us too. They will just take a little more digging to find. Finding a property that is under market value and doesn't need much work is what every investor wants. As a result those deals will not last long and more than likely will not even have a chance to hit the open market before an investor with the 'inside track' gets it. With that being said, those 'great' deals are going to be the off market deals, the ones you find on your own from networking, networking, and networking. Networking begins with your immediate spheres of influence - family, friends, colleagues. Everyone you know should know that you are an investor and have them tell everyone they know that Sharlene is the person to go to for anything real estate related in Orlando.

I wish you the best!!

Sincerely,

Eric H.

@Courtney W. Welcome to BP!!

Yes, real estate is a relationship business. I have been actively participating in real estate for about the same time as you and I think that building a successful team is an ongoing process. For many different reasons.....some people will leave the industry, others will change their business model/goals, you may change your model/goals, true colors are revealed over time, and the list goes on. I can attest to the power of BP. I have done deals with folks I've met on the site. I have also received great advice and tips from folks on BP as well. Disclosure: Properly vet anyone that you will be working with, whether its on BP or any other place. Ask for recommendations, ask them about the deals they have done, ask them about deals they are currently participating in, etc.

I wish you the best!

Sincerely,

Eric H.

@Jerrel Almeida Congratulations on taking action!! I actually used vistaprint to design my own postcard. The idea behind my own design was to stand out from the bombardment of mailers absentee owners are getting weekly, monthly. But what I found as I started receiving calls was that my design had nothing to do with seller calling me. It was all about it being the right time for the seller. He/she was ready to call so they end up calling everyone that sent a mailer.  The other response was 'Oh yours was the one I just happened to grab'. I recently received praise for my design from a buyer that is aggressively buying in my area. He liked the design, checked my website out and googled me. His google search revealed that I was an active member on BP and it further proved my legitimacy. The power of BP!! I love it!!

I wish you the best!!

Sincerely,

Eric H.

@Mark H. It will ultimately boil down to your goals, short term and long term. Easier said than done. I know. Consider tackling real estate full time. Get with a broker that is willing to train and go at it full force. Being a real estate agent is a sales job too. If your expertise is in sales you will be way ahead of the game. Personally, I hate feeling like I 'need' an employer. If you agree to the employer's terms in this case he/she may feel like they have 'control' over you. I would rather the employer feel like he/she needs me. Better job security and I am not subject to his/her rules/standards if they become outlandish. Keep us posted with your ultimate decision and how it works out for you.

I wish you the best!

Sincerely,

Eric H.

@Sherman Ragland Thank you for that detailed response!!

@Ryan D'Amico Congrats!!!

@Prince Igoni The answer to your question is either. As the wholesaler you may want to make your offer a little stronger by offering a non-refundable earnest money deposit. If you do offer this, open escrow because you do not want to put cash into the seller's hands. But otherwise it would be the end buyer that is opening up escrow. In my assignment contract the end buyer agrees to pay a non refundable earnest money deposit. Separates the champs from the chumps.

I wish you the best!

Eric H.