Short Sales in Ca. for 2011

This is what I do, I don't know if it is legal in California but I can't see how it would not be.
Get the property under contract using a good POF letter and copy of your earnest money check. When the offer is approved by the lender, call your buyer and sell the property to him using your own sales contract, make the earnest money non refundable and set up the double closing using transactional funds.
When I make the offer I tell the agent that I will close myself or one of my investors will fund the deal. Period, I tell them not to worry about my end, if we get the property at the right price, all the money needed will be available at closing. I do not tell them my life story or my ultimate strategy. I do not let them interview me, I am interviewing them!! After I politely respond to their questions about my ability to close I then ask them "When in the last time you worked with an investor and how much did he end up making on the deal? What have you found to be the best source for investor properties? I am looking for entry level SFH that I can buy around 65% of an actual quick sell ARV after repairs. DO you have anything like that or can you find them? It is none of their business what I do as long as I can PRODUCE!! Don't play this game and then not be able to close, After you close your first deal the agent will give you the respect you have earned!

Tell Michael Kimble you will have the property under contract and will sell it to him, his earnest money will be non refundable on the first deal you do.
You will be doing a double close with full disclosure. Find out what type of spread he is looking for, where he is looking and ask for his proof of funds up front. Pre qualify your buyer!! No need to waste time on someone who just wants to tie up your contract while he looks for a buyer. This is called a daisy chain! In other words, show me the money and I will find a deal.

Once again, if you are going to talk the talk with your agent you better be able to close the deal.

If you are actually going to "bird dog" you need to know what the quick sell Arv is, what accurate estimates are and what to offer that will get accepted and makes sense. If you are capable of doing this, why not do the rest? Get it under contract and wholesale it, then do it again. Skip the bird dogging when you are doing all the research!

Just my opinion on this!

Michael Mangham
MD Home Acquisitions LLC

That is a really good post!

Karen

Thanks! That is what I do and have had great success. I don't waste time on buyers that can't produce and I take care of my realtors anyway I can, I just don't let them control the conversation or tell me what I can or can't do when I interview them. I surely never say I have no money, I'm just learning, I am going to assign the contracts I get Etc. Etc.
When you produce a POF letter that will be backed up by the lender and have available transactional funds you can make all the offers you want and if you present yourself as a knowledgeable investor there is no need to rely on bird dogging!
For me the key has been having true active CASH buyers waiting for my 70% of a quick sell ARV after repair properties. I can't keep up with the demand!

On that note: Looking for wholesale deals in and around Denver and parts of Southern California. If you control the properties let me know, we are buying all we can find!!

Michael Mangham
MD Home Acquisitions LLC

That's what I'm talkin' bout!

Peace and Blessings,
Sheila

What are your thoughts?

Michael Mangham
MD Home Acquisitions LLC

Andrew isn't addicted to this site yet like we are. LOL!

What are you looking for in particular in So CA?

If I can't move to Denver and have you for a mentor, I'll just have to soak up your knowledge from long distance.

Is your POF letter the one you get from Cameron? I definitely want to work with him. I was very impressed with his presentation. When I do, I will go through you. I have to get some kind of a deal closed first though to have the initial upfront fee.

Karen

Greg, could you translate your post? I have no idea what you mean.

Thanks
Michael Mangham
MD Home Acquisitions LLC

Take a long time! But, they can be done. Especially if you get a short sale negotiator. However, there have been some investors that are ruining the name of investors by doing illegal things with short sales here, but short sales themselves are not illegal, and double closing them is not as well. The seller can not have any gain from them.

There is a post about this on this site, but I can't find it. Sorry, I tried looking for it. It is really helpful post, wish I knew where it was! Sorry I couldn't be of more help. Michael has given you some great advice, but do check with a lawyer for rules. Kimmy will probably have some good advice as well.

Masseur likes to give lip service to make wealth in his dreams while talking in code. At least that is what I understood. *snicker*

Michael, Thanks SO MUCH for your incite! Sorry I did not get back to you sooner. I always have to go back to my old job because I haven't experienced a check from investing yet and the bills do not stop including the loan for Dean's success academy & Essential Plans.
The investor I deal with wants Luxury S.Sales which would be a problem for my POF document. I will probably be back with more questions after I absorb this.

Andrew Dream home Properties LLC

Wow your support is priceless..

I was wondering if you have to have POF in order for a bank to accept a short sale or to even negotiate?

Also if they accept a SS and you attempt a double close do you have your buyer's money in escrow before getting the Trans Funding what would be the best process to insure you dont make a costly mistake if you don't mind?

Another question Sorry. I have wanted to put in multiple offers but I have yet to write up an offer on a property listed with an agent and I dont want to have my offer crinkled up and thrown away because I had know Idea how to write one up properly.

If you could please give an example on how to properly write up an offer to a realtor as i have never done this before.

It has been my experience that I have always been asked for proof of funds, however I do not work short sales myself, I make short sale offers through my realtor.
Any time you use transactional funding you must have your buyers money in escrow before the funder will wire the "flash cash" The most costly mistake would be you loose your earnest money and hurt your reputation
I make sure I have a great deal in advance and a buyer lined up if possibloe before I sign the accepted contract or I am confident the deal is strong enough to bring buyers as soon as I market the property.
I require a non refundable earnest money deposit with buyers I have not worked with before. This assures they will be there to close or they will back out when you ask them to produce real money in advance.
Your realtor will supply the contracts. You don't write them up, the realtor does.
If you are working directly with a homeowner, then you will write your own contract.
I tell the realtor what I want to offer and my terms, she provides the contract that I sign, provide a copy of the earnest money check and she submits it to the seller.

Hope this helps,
Check out my transactional funds guy at my website below if you like.

Michael Mangham
MD Home Acquisitions LLC