All Forum Posts by: Brett Goldsmith

Deficiency judgments are allowed in Maryland. At 170k the deficiency would be quite a bit more than 50k due to closing costs if the borrower owed 220k. The goal would be to get the deficiency waived per the short sale approval. This depends on investor guidelines and borrower financial solvency plays a role too. "Wholesaling" short sales is not always an easy task as you can't do a typical assignment of contract and get paid through closing. 

Short sales can be great to buy and are often very speculative until the banks cards are shown.

Check if foreclosure proceedings have begun with the 1st. What state is this property in? If foreclosure was initiated you should of received notice as you are a lien holder.

If it is not in foreclosure it may be worth looking into renting it out, but I know you've mentioned you are concerned that it would not rent. Maybe you can get someone in their now for dirt cheap rent so at least you can collect something until it is presumably foreclosed on by the 1st. As Ned stated, the servicing company will keep up property taxes the majority of the time and just tack it onto their payoff, many times this is that a property tax lien will take senior position.

You won't be able to speak to the 1st as you're not on the loan. The borrower would need to provide authorization. In 2nd position, with no equity, with an undesirable property, it could be a lost cause to milk it much further to recoup losses. 

@Alex Early That depends on you. Some investors don't care about cap rates as they want tax benefits and to catch appreciation. Some are happy with 4-5% return, appreciation, and high quality tenants in a great location. Different strokes for different folks! Depends on an individuals goals and financial strategy.

Flipping in LA and SFV is great if you buy at the right price. Cap rates are low in LA. Generally if you find good CAP rates you can flip it and make great money. LA is more about appreciation and stability potentially than cash flow in my opinion. Out of state investing for higher cap rates.

I use propertyradar for our organization. It covers a few states. 

Makes no sense to get the deed if your goal is to sell the home as a short sale while playing the agent roll. You getting the deed and trying to sell it may cause complications to the transaction with mortgage servicer and investor of the note. You could get a POA without the deed if needed.

A seller contacted me who had built 3 duplexes on the same street in Independence, MO shortly before the crash. Borrower owed about 135k and property's are worth an est. 90k. 

I have closed on 2 of them and am working on the 3rd one with the bank.

Purchase price for each one was 75k. 

Purchase price for pending unit 65k ( banks value came in lower on this one, but they are giving seller a hard time because he was current on payments and makes good money. All 3 mortgage's had different investors and we were able to complete a ss while borrower was current on the other 2. )

Total Rent collected on each $1,625 and tenants pay utilities. Separate meters. 

One duplex has long standing section 8 tenants and the other has non section 8 tenants.

Any questions, let me know!

Does the property have equity? Having the deed could be a plus depending on what you are trying to do, but it likely isn't a necessity if you are trying to wholesale. 

Were you planning to manage it yourself? Are you buying into the home with equity or a value add opportunity? 

Short sales have always been around and always will be. In an imperfect world, there will always need to be an option for homeowners with underwater assets. Short sales are a blessing to those in need.