Short Sales Galore
Hey, I have a couple of questions. I am pretty familiar with the SS process in general. I have even had good success dealing with the loss mit dept while neg. a full modification. I also have experience doing sub to deals. I have a mentor in town that focuses on pre-FC sub to deals, and attempts to SS almost all of them. She said she was only getting about 1 out of 5 before she bought louis brown's course and now she gets 3 out of 4. The better increase in results have been from her ability to prepare almost exactly what is needed for the loss mitigation people. They have even commented on how prepared she is.
I have a few real good pre - FC leads where I may want to try and do a SS. Is there a formula you use for coming up with the amount you initially offer? I was told 70% of the ARV minus repairs is a good starting point. My question is, what if there is a real good amount of equity in the property? Will that affect it? I also understand that renting or lease purchasing is really not a viable exit strategy for ss deals as there is usually a time frame agreed upon to close. Basically this leaves discounting and selling the property.
If time is of the essence, how do you determine how much to discount so that you can move the property before the agrred upon date? I suppose that is a given that we do not want to have to obtain our own financing (although we could) to buy the property. Should we consider buying it with our own financing and holding it if there is a lot of equity in it?
Thanks in advance.
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