It seems like a lot of people have forgotten one of the cardinal rules of Creative Real Estate Investing and that being: only dealing with MOTIVATED sellers to make a creative deal work.
So why are short sales only working part of the time and the discounts are getting smaller????
Guess what…the banks/lenders are NOT MOTIVATED to do the deal.
Why should they? If they have enough cash to keep them going and not affect their bottom line, then why take a discount on the real estate they are taking back. They know that markets are cyclical and so it is just a matter of time before the market bounces back and they can make a killing on the resale of the properties they are collecting.
Additionally with the bail outs they have or may have available to them, there is no incentive to give discounts to investors.
Is this true about every property and every lender, of course not, as there are some lenders out there where it makes financial sense for the lender to do the deal; just don’t expect every lender to be MOTIVATED to deal the way you want them to.
My point is not to stop trying to do short sales, but you have to take a realistic approach and not expect miracles in making a gazillion dollars overnight doing them.
Call the Trustee to find out what the bid amount is for the foreclosure sale. ONe of the deals I had with WAMU, I found out the offer was higher than the bid price and that helped getting the deal closed.
Not on Crack...but just like any other company trying to get the best deal for themselves.
John (LV)
It seems like a lot of people have forgotten one of the cardinal rules of Creative Real Estate Investing and that being: only dealing with MOTIVATED sellers to make a creative deal work.
So why are short sales only working part of the time and the discounts are getting smaller????
Guess what…the banks/lenders are NOT MOTIVATED to do the deal.
Why should they? If they have enough cash to keep them going and not affect their bottom line, then why take a discount on the real estate they are taking back. They know that markets are cyclical and so it is just a matter of time before the market bounces back and they can make a killing on the resale of the properties they are collecting.
Additionally with the bail outs they have or may have available to them, there is no incentive to give discounts to investors.
Is this true about every property and every lender, of course not, as there are some lenders out there where it makes financial sense for the lender to do the deal; just don’t expect every lender to be MOTIVATED to deal the way you want them to.
My point is not to stop trying to do short sales, but you have to take a realistic approach and not expect miracles in making a gazillion dollars overnight doing them.
John (LV)
I think Bargain76 hit it on the head when he said he thinks they are waiting for the government bail out.
Chris
Wamu has always been on crack as far as I know
Guess what- you can have the bat, the ball, yes it can be your game- but you are still going to need players.
Trust me, there are too many low hanging fruit waiting to be plucked to waste time dealing with jerks.
Next!
Chris
Call the Trustee to find out what the bid amount is for the foreclosure sale. ONe of the deals I had with WAMU, I found out the offer was higher than the bid price and that helped getting the deal closed.