One Quarter Million Dollar Coaching Error
SS Forum, I absolutely have to have my own funding, plus expences, in my area, to close on my approved short sales and I absolutely can not use the funds from a cash investor.
Thank God, I haven't contracted to sale.
This information of a need for my own funds is a year slow in coming.
This information is also one week before one of my bank approvals deadlines. ( I'd have had a cash buyer by dropping the price considerably and/or offering all the realtors their full six percent.)
With my deadlines upon me, in order to even need a cash investor or an Investor Friendly Title company > I have to have $125,000, on two deals, CASH UP FRONT.
Would I have started into any of this if I'd known that in the beginning ?
I need help in a partner or funding to bail me out.
Please spare me the "tabs", "articles", "searches", "club", or "program" route. I enjoy them, but this isn't the time to be learning new industries.
I'm broke, so points up front aren't there and no, my short sales not down to 65%.
If you're someone that is in a position to make something happen,
Thanks a Million,
Alan Gross [ Edited by thealmon on Date 01/13/2004 ]
Hey Alan,
Sorry about the trouble you have had with your "Short Sale Coach".Its surprising that after 9 months on TCI you had still thought of giving money to a Self Styled Coach and almost got burnt..
So whats the help you are looking for from the short sale forum?
(It seems you have posted your message more as a way to vent which I would too if I was taken for a ride.)
Its ludicrous to have 150000 cash upfront for the deals...so probably you are better off not trying out any of that suggested by your coach.
You may hate it but I would suggest you read up more on your short sales here on TCI and ask a lot of questions..There are great guys up here who can help.
With the marketing efftort which you have launched you already have desparate sellers lined up..All you need to do now is present a case where you are convinced there is money to be made and Iam sure someone here will help you out!!
Bes Wishes!!
Alan,
First of all, you have to have a sense of humor about this stuff and NOT be so emotional. Real Estate is an inaminate object, not a gyrlfrend or an ex-wife.
Your ramblings are pretty obscure, your spelling is horrible BUT your punctuation is pretty damned good.
What is the meat and taters of your deal? Take a deep breath and share the facts of your case. Make believe you are making a short sale proposal. It's all about the facts of the case and not the emotion.
It is uncertain if anyone can bail you out because you haven't provided much info. I am sure there are a lot of people on this site that would be glad to evaluate your deal or the lack thereof - gratis. It is a fine story from which we can all learn.
Short sales are a lot of fun IF you can make a case to the lender that makes sense. Believe me, they need your help and will listen to an offer if you sound like you know what the hell you are talking about. Remember, they are worker bees, not the cheese. Ask them what they need.
Title people are hard-working and largely underpaid. Don't go to a title pro and not know your caca.
My sympathies are with you and I'm sure we would all like to know more about your deal.
Breathe in - ooooooooo and breathe out - ahhhhhhhhh. Fill us in.
C-
Hi Allan:
I have a solution to your problem. I have been faced with this problem many times before and have a way to handle this. You need to go open up a total separate loan escrow with a different escrow company. They can draw up the note and deed of trust for your investor who is bringing in your funds. You then contact the seller and escrow from who you are buying the property from and tell them you need wiring instructions so that you can wire over your money. Once you sign everything, have your own escrow company wire over the money and you will complete this transaction.
If they tell you to bring in the money, tell them your attorney has instructed you to
wire the money. They will not have a problem with this.
The problem you are encountering is that their are so many so-called "Guru's" who have never done a single deal. Next time you hire one of these so-called "Guru's", ask them how they take title in property they buy and sell and do a title search to see what they own. If
you find nothing, you have answered your
own question! Any other questions feel free to PM me. - Jeff
>> The message on my answering machine from my short sale coach was that I absolutely have to have my own funding, plus expences, in my area, to close on my approved short sales and I absolutely can not use the funds from a cash investor.
Excuse my ignorance, I do not understand the problem. "Have your own funding,funding, plus expences, in my area," - what does that mean? "can not use the funds from a cash investor" - what does that mean?
Own funding is a conventional loan and cash funding is hard money???
bgrossnickle and SS Forum,
Have my own funding, in the form of a loan or hard money or line of credit or self directed IRA or cash in the bank, that I can come out of my own pocket with, in order to satisfy the agreed purchase price between the home owner and I, ( that has been approved by the bank, on a short sale ), is what the Title Company has to see, -for me to make a financial aquisition of the property independantly, prior to any investor re-puchaseing that property from me They'd buy it within a few moments, possibly, but, also, would be required to show proof of their own funds, seperately.
So, if I would just need the use of the funds for a few moments or a day, what's the problem ?
One Quarter of a Million Dollars Cash.
I'd diligently pursued a Plan B, on my own, as a Back-Up. Plan B was to have my own funding, in case I didn't secure a Cash Investor - Fortunatly, I'd aleady spent dozens of hours on this and became acquainted with how these situations- equity or not, fall into quite a lending/ hard money/ private money void. ( down payment, points, low LTV, reserves, etc. ).
Plan A was to be able to use the investors funds to make MY aquisition, plus expences and simply pass Title to the investor and a check for the difference to me.
The level of evidence to me that I was screwed had a significant impact when, Plan B - Provide your own funding,
became Plan A.
Since, whatever :
"Land Trust",
"Avoid Seasoning",
"Assign Beneficiary",
"POA",
"Purchase in name of Corperation",
"Create an LLC",
"I'm the Trustee",
"I'm acting as the Seller",
"Collect a Trustee Fee outside the Land Trust",
"Partnership Agreement",
"Place a Lien",
"You don't need any money up front, for Title Work, Appraisal or anything",
"JUST DO a double closeing",
"you'll simultaneously close and use the investors funds",
mean, or what any combination of them mean, apparently, aren't applicable where I'm located. Or, if any of them are - who knows ? This, according to the Title Insurance underwriters.
The negociations for the short sales went well.
As did my request for, " if you're someone that can make things happen", here in the TCI forum. Thank you, gentlemen, for your reply's. They are very heart felt and I appreciate everything you've said, very much. You and I, along with so many of our peers, that have viewed this post, are here to learn and help. We might as well both try to get the most bang for our buck, from this Hic Up, here.
Property One:
Home Value $160,000
1st Morgage $160,000
Shorted to $110,000
Services to HO $5,000
Other Liens none
Taxes probably >$1,000
Total Obligation $116,000
Property Two:
Home Value $166,000+
1st and 2nd
@ same bank $166,000
Shorted to $116,750
Services to HM $3,000
Taxes probably $2,500
Total Obligation $ 119,750
Check my properties. Thanks a million,
Tony Robbins would ask, what am I afraid of, if everything does go wrong- that I wont be Loved ?
Hell, no Tony, haven't you been to TCI ?
Alan
[ Edited by thealmon on Date 01/13/2004 ]
Alan I am still not understanding. Perhaps I am the only one.
What does your coach care if you get funding from someone else.
I know there is alot I do not comprehend but I have no idea what you are talking about here:
A target doesn't make a very good impression.
Or what you are talking about here:
The, "ca-ca" happens and "you can't help everybody "ca-ca" or the "we're throwing you over board, to save our - There are more Coaching Students where you came from - boat "ca-ca" are going to have to go through a detailed explaination, made by me, to the hundreds of Realtors, Real Estate Investors, web-sites, lenders, Buyer's, Home Owner's, businesses etc., not to mention These Home Owner's, their attorney's and banks and here it is, my wife, once I make my proposal to them to fund these deals and they say, "why don't you start from square one and do this Brain Child bright idea, to get a quarter million at the mid-night hour, Donald Trump ?"
And actually a couple other places.
A freindly suggestion if you post the Just the facts and leave out the flowery writing and quotes of 'gurus' more people would be able to understand and offer their help with your problem.
As I say freindly suggestion and if you feel you are getting enough feedback then forget my comments.
Good Luck with it all.
Michael
[ Edited by MrMike on Date 01/11/2004 ]
Short sales are easier to close when the Purchaser remains a principal and takes title to the subject property. The combination of creative acquisition techniques cause problems for the experienced, and failure for the less experienced.
Are there ways around that? Sure. Is it easy? No.
KISS
I am always impressed by those who instruct and in so doing create a web of complications.
Short sale. Stand as the Principal when it gets complicated. Then assign over. If you are dealing with fools, open a second escrow or closing station depending where the hell you are and then do your assignments and close.
If you want to spell it all out, step by step and the funds involved and required. Why do so. You are surrounded by doers not just writers and talkers. Try TCI on line I am impressed by many of the Posters and I helped build the Ark. Your solutions are right here. Try it you'll like it.
Lucius
Mr. Mike,
The Short Sale Pro understands.
Last week and for the last year of being "taught", I needed:
1. A Cash Investor
Plus 1. Approved Short Sales
Equal = = Fifty Thousand Dollars Profit
Now, after I receive a message on my answering machine, with one week left on one of my approvals and the other bank standing on one foot and the other, in order to close these short sale deals and make any money at all, much less fifty thosand dollars, and stop these home owners foreclosures, I need:
1. A Cash Investor
plus 1. Approved Short Sales
plus 1. Quarter Million Dollars Cash.
Don't sweat the small stuff.
Alan
[ Edited by thealmon on Date 01/13/2004 ]
I am confused also.
Alan,
If you are going to a SS or any transaction where the mortgage is needing to get paid off in full, the money is going to have be available.
where is this money coming from?
Who is wanting to check to see if you have the funds?
I know your under the gun and you dont want to look the fool to all involved but Please leave the rant out of your post. Just the facts. Its to hard to follow you.
[addsig]
Am I correct in reading that you never signed a contract to purchase these houses?
Or are you saying that you did not contract to re-sell the houses?
If the first is the case then there will be no short sale.
Assuming however that you do have them under contract, I suggest you forget the past for now. Allthough most unfortunate, it cannot be undone by anyone on this forum. There are some valuable suggestions above that will point you towards a solution. An Investor will want to examine all the paperwork you have in place. If the deal is as good as you outline, a solution will be found. You may have to give up some of your profit, but so be it.
Just make it happen.
There will be more deals where these came from.
[addsig]
Am I correct in reading that you never signed a contract to purchase these houses?
Or are you saying that you did not contract to re-sell the houses?
If the first is the case then there will be no short sale.
Assuming however that you do have them under contract, I suggest you forget the past for now. Allthough most unfortunate, it cannot be undone by anyone on this forum. There are some valuable suggestions above that will point you towards a solution. An Investor will want to examine all the paperwork you have in place. If the deal is as good as you outline, a solution will be found. You may have to give up some of your profit, but so be it.
Just make it happen.
There will be more deals where these came from.
[addsig]
Hawthorn,
Thank you.
Yes, there are signed contracts with the Home Owners and Approvals from banks on short sale amounts.
I've lost track of what it is that the reply posts don't understand.
Other than they are good deals, as I have discribed.
The prices are generic, I know I'd have to make room for-----***no cliches allowed***-----.
The catagory would be partner/ private money/ genius.
BAMZ really helped me earlier with the Private Investor concept, that can employed in this situation- this train wreck - I'm looking.
I'll let you all know what the Lord does with your contributions, here.
Jeffca is getting down with his bad self. This may be what I've been looking, for for a year now. Thanks.
Obviously, you all know a Hard Ship Letter when you see one.
Thanks again,
Alan
[ Edited by thealmon on Date 01/12/2004 ]
SS Forum, Property One approval dead line from bank past. Potential negociated equity lost, $44,000.
Property Two dead line 2 10 04. Advertising in paper for, "any reasonable cash offer" and "business partner wanted ,9%-12% secured by real estate."
Am non-plussed, by real estate community, in my area, seemingly oblivious to the profit potential I'm offering.
I'm tring to get more aggressive, in my marketing to sell. ( with 20-30,000 equity left on the table ?) Whatever it is I'm not getting here, I'm open for suggestions.
Thank you all again for your guidance. The leadership, displayed on TCI, is also, the real thing.
Thanks again, Alan
My two cents:
When you find a foreclosure deal, and do a short sale, you need to have either a buyer lined up to fund, or someone else with the money to fund.
When I have had a deal on the table, but not confirmed from the bank, I had to estimate what I could negotiate the loan down to and what I would then sell for either to a retail buyer, or a wholesale buyer. This is because if I couldn't find a retail buyer, I could possible flip it. So, I start advertising for a buyer from the day I have a contract from the seller, and contact my investors for a possible flip.
Once my ss is confirmed I can work with harder numbers. My retail buyers know the numbers, but my investors have a range. They know I am working on a short sale.
Lastly, I have a possible loan available in the back ground. So all my bases are covered as well as I can. In addition, I have renegotiated the fund date with the bank several times. They want the house sold, and if you just talk to them they will usually work with you.
GOOD LUCK!! Colleen
Alan,
When your deadline approaches... have your Title Co. call the foreclosing lender and ask for an extension. Title companies have valid reasons for delays and thereby are easier to obtain.
It has worked for me several times.
God Bless,
James