All Forum Posts by: Derek W.

I am batting 0% when dealing with PMI. Good luck with this. At this point, I won't work a short sale if I learn there is PMI.

I have rarely had the lender accept less than 10% of the BPO or appraisal value. Most want an offer very close to bpo, or they will let asset management handle the sale of the property.

I can't believe I just read this ENTIRE thread! What's wrong with me?

Millionaire Real Estate Agent (Gary Keller) is a classic. I found that most of the successful people that I read about all say that Dale Carnegies “How to Win Friends and Influence People†changed their life. (Warren Buffet, Bruce Norris, Donald Trump) I took notice, read it, and see why! I know it isn't technically a sales or agent book, but it really is in a deeper sense, I guess.

It is questionable that the listing agent has performed an unethical act if it wasn’t disclosed that multiple offers were being considered, which is something many short sale agents are doing now. But that is about it. I agree with Tony, present the situation to the agent’s broker if you feel you were in first position and have been unfairly bumped. However, I would much prefer a conventional loan over FHA if I were the seller or seller’s agent. FHA takes longer and seems to have more snags, like getting hung up in appraisal reviews, lost in underwriting never land, etc. And like David said, it is still a transaction between a buyer and a seller, not a buyer and the lender, so contacting loss mitigation is not going to solve anything. It is up to the seller, not the lender, to choose the best offer. Besides, they won’t talk to you without proper authorization from the loan holder anyway. Wish I had better advice! Sorry.

I would highly recommend reconsidering that option and continue to pursue going through with getting your license. With it, you not only benefit your own real estate investing career, but can help friends and family as well. I have never really understood the “higher standards of disclosure†argument. Do business honestly and ethically and I feel the benefits of having a real estate license far out way any perceived negatives. With your real estate license you can search for your own properties, pull your own comps, and become an expert in your real estate area much easier than without your license and access to the mls. I know a number of very seasoned real estate investors, and they all have their brokers’ licenses. They have told me that it has never been a negative to hold a license. I have never felt it a negative, and couldn’t imagine having to rely on someone else to find properties and make offers for me.

You can get multiple GC bids before purchasing, and I would recommend it. It is polite to stagger the bids so they don’t show up at the same time, but it is also hard to get guys to show up right when they are supposed to anyway. Most GC’s assume you are getting multiple bids. There is a book called ‘Flip’ by Rick Villani and Clay Davis. They have some really interesting simple numeric calculations for getting an idea of the scope of a rehab and what it should cost. It shouldn’t be a substitute for getting actual bids, but will give you an idea of approximately where the bids should fall before meeting a GC.

I agree about your take on Nouveau Riche, but was being polite as to avoid the flame war I got into earlier this year when I suggested something similar to what you said. In my area there are a few trailers with billboards on them driving around that say "If you haven't made 15k this month, call now..." This is also N.R.

I am an absolute SUCKER for those bandit signs! If I see a new one in my area, I always call to see what kind of ridiculous pitch they have on the other end. I guess I am just trying to keep on the cutting edge of marketing in my area or something. Maybe it’s the same reason I watch those “flip-this-house†shows, it just amuses me! Like Jon said, they are usually for Nouveau Riche, an “investor college.†Some are for bird-dogging; some for letter stuffing, but one seemed to need a “straw buyer†for a shady sounding investment. Yikes! I have yet to actually talk to a “real†investor that is seeking helpers. It doesn’t mean it isn’t out there, just my experience.

Who, except investors, are going to buy houses that have broken windows, missing a/c units, filthy carpet, vandalized, copper stripped, etc. and turn them into homes that people can live in and love and raise a family again. I know that almost all of the agents I know that are working with buyers want a move-in ready house. So it is the investors that are helping clean up neighborhoods, stabilizing comps, and providing affordable, safe housing. A little idealistic…maybe. But history has shown that investors play a large part in revitalizing neighborhoods after down markets, much like vultures are essential to the ecosystem of cleaning up carrion. (Wow, bad analogy!)