All Forum Posts by: Ted Akers

Good responses here. I am a transactional lender so also do not have all of your answers. I do track economic/housing numbers and believe that short sales will amount to a substantial portion of total sales for about three more years. 31% of all sales nationwide in the first quarter were "distressed" sales. Spreads above 20% are possible but do face increased scrutiny if a mortgage is required for your end-buyer. I believe your spreads do increase when outsourcing to experienced negotiators. I also suggest checking with an experienced realtor and/or an attorney regarding allowing a realtor to function on both sides of the transaction. Some states and/or local realtor boards are starting to prevent realtors from being on both sides of the transaction (Colorado where I am for instance prevents it and there is some movement in that direction). It sounds as if you have a good understanding of the business parameters, but to reiterate - full disclosure to both sides of the transaction that you are an investor intending to resell for a profit is the only way these are getting closed. Best wishes getting underway.

Mary Anne,
I have not contacted them directly, but have heard conflicting answers regarding Wells Fargo - like yes in one city and no in another. Are you working with them on either conventional or FHA or are you hearing from them that a same-day flip is ok when the LTV is greaten than 80%? Thanks!

Most lenders are not going to want to go above 120%, unless you document improvements. However, FHA guidelines do allow it - typically with a second appraisal and a home inspection. Based on this lenders performance it seems unlikely that they are going to step out of the box at all. Most lenders are not that busy right now and six weeks is toooo long.

Larry,
Nice to welcome anothe Coloradan to Bigger Pockets. you have found a great site for both content and contacts.

Welcome to Bigger Pockets. You have a strong background. You may not find many traditional employers here, but might find funding sources or partners for deals. For sure you will find tons of content.

Dustin, that is an excellent BofA "love story". They do have an agreement of sorts with BofA if it is submitted with that company and have had success with it. It does equate to a 25% bird dog fee.

Welcome to Bigger Pockets. You have found a great site for both education and contacts. If you can coordinate back-to-back flips of either short sales or REO's transactional funding can be used for 100% of your purchase price. Good job setting goals and best wishes pursuing them.

One other thing. Many loan officers are not aware of their own guidelines, but if you have a buyer with 20% down most major lender guidelines waive title seasoning requirements.

So...., who else has contributions to this list? Mr. James?

Great post and replies in the forum Bill. I have followed and replied in several other Linkedin groups with very similiar dialogue. Many participants are not open to logic, and a few see the light after reading points like yours. It is in "everyones" (but especially the banks) interest for the property to not end up as an REO, the investor does the hard work of negotiating with the bank and many many many realtors will not even show a property listed as pending short sale, banks are making an informed big boy decision regarding the short sale offer versus their likely net going through foreclosure, there is NO fiduciary responsibility to the lender (this argument baffles me), the only deals closing are FULLY disclosed, and national title companies would not be closing them (especially in this environment) if they are illegal or heaven forbid that "F" word FRADULENT. Finally, it is in everyones interest to move inventory in a distressed market. If the investors helps to faccilitate moving inventory before it goes to REO he deserves compensated for it. Nice job and good luck herding those roosters.

Elisha,
Welcome to the site. Do not be nervous about asking questions. The biggest advantage of Bigger Pockets is there are very experienced investors in all areas that are willing to help. Best wishes digging through the forums.