Persistence Paid Off -Score= Countrywide-1 Seller-2 Buyer-$5000.00?
As many of you know, my ignorance almost cost me "the deal". I want to share where I went wrong. First of all I acted as an individual instead of a competent investor.
Christopher at loss mit told me a few things I did wrong. 1) I didn't have the seller call for the workout pkg. 2) I didn't have the seller sign the Offer to Purchase. Therefore, It made it, what he referred to as, a "short-buy" instead of a "short-sale". 3) He told me my offer was too low.(His perception of value that I created was to low).
He still wouldn't give the email address But that's another story.
Here's the crux... I gave them too much info to be acting as an individual (due to my boneheadedness) ie. paper work and terminology that an individual wouldn't necessarily understand. I knew just enough to be dangerous but not enough to be effective. So I should of had a mentor walk me thru my first deal and paid him/her for his valuable seasoning. Right?
All is not lost... Christopher told me to fax all the comps, estimates, new Seller signed Offer to Purchase with a "realistic" price, estimate for repair of "damages", sellers financials, etc. by the end of tomorrow because they are closed Monday and he will make sure I get the workout package sent to me via fax. But aren't all these things that he wants exactly what I'm suppose to get in the package so I know what to send? He is treating me as if I know what to do when I'm telling him I don't know.
I asked him that and he said yes.
He told me that my last offer wasn't high enough and that they could let the property go to auction (for the now $80,000 they perceive it to be worth which he told me a week ago was $65,000) and if it didn't sell they would pay off the back taxes and it would become a REO.
I realized I was negotiating without even having a BPO or all the other stuff that I learned was supposed to happen in the logical order.
So now what do I do?
Rob freakin "short-buyer" Paddock-In Wisconsin
I would send him all the information he requested. Then I would take a look at my numbers and see what the most I could offer him is. Send that number over on a new purchase contract. If they accept your offer contact a title company for a closeing. If they won't accept your offer try to justify your number. If that doesn't work move on to the next property.
nathan