Please Help Me on this one!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Most of us in this business always put much lower offer than the asking price. If they are asking $190,000 and I would start the lowest offer and you can always go up if they declined your 1st offer. Good Luck !!

Warm regards,

Paul T. La Moy

Here is the deal and my personal strategy.

I call my realtor and tell her to put an offer by phone at 50% ASKING PRICE. You have to remember that it is a short sale and the last thing the bank wants to do is keep the house. Now, having said that... Of course if the house is priced at 190K and you offer 100K, it will be rejected. At that point, I stand back and reevaluate. If they rejected it with no counter, call the agent and tell the opposing side that all you did was put a number and waiting for a counter. Also, if the mean value of sales there is 233K, you might want to set a ceiling for yourself. A number, above which, you will absolutely not go. I would stop at 170K. But that's just my opinion. That way you have enough room to dish it either to the end home buyer or investor.

I hope I made some sense.

Yuri

Thats what I was thinking about that when I wrote the first posting and suggest starting out 90,000 to 100,000 to start out and see what happens. I am glad you said that first. That way Bryan can work his way up to it if he got declined.

Paul T. La Moy

Hi,
ByranSR to much info for me.If you are going to do anything with this deal. Start with plan-A,B and C...Your call.You said "help my family"!I think you are on the beaten path too do that!If it is a short sale and they are really asking 190k when comps are 40k plus,Then if that is a short sale...I throw my hat up,Sir!
The best info i have been given thru Dean G and all of the resources is...Buyers Lists
Well buyers lists is #2
#1 is...We can do it(REI)!!!!!!!!!!!!!!

Hi,
short sales are not what you read,Going by your info.Lesson learned is a,Lesson indeed!

Hi Byron,
Your offer price should always start at a lower offer because there is no where to negotiate if you start at full price. It is easier to price up than down. But price profitable. Keep in mind what the end buyer is looking to spend and what you are looking to make plus repair expenses if needed and make an offer that will benefit all partites involved so that the deal closes quickly. Your time is money. Much success..........Lubertha

Thanks everyone.

Can we assign a short sale? I thought banks dont accept assignment offers anymore.

Some still do. You have to make sure you put it in writing and they sign off on it. Then they have no way of backing out

Yuri

you do that? put it in writng to them and get them to sign off on it?

Send in a low offer, then play ball and see how far down they will come. They want to get rid of it fast, don't offer asking, go LOW LOW LOW!

Jeremy

when you send in your offer, you put in special clause. One of them is that you can assign the contract. As long as the offer is signed as accepter, they are bound by the contract (which you will assign later LOL).

Yuri

Hey.
You might want to consider only slightly below the asking if the seller will consider a contract for deed; these have worked well for us so far truly motivated sellers. Sounds like this is a solid property that will be one of those to go up considerably when the market turns.
To simply always offer low, low seems a bit myopic to me; many a story from Dean of paying full asking price in some cases if you can struture a deal with little or no money down and get, say a 3 year balloon payoff. You can perhaps refi it, pay off the seller and take out some cash.Of course, when dealing with the banks, etc. some of this won't apply,but still ..; attempt to negotiate for yourself something creative and EDGE-Y even with the banker.
best of luck
Grady

Bryan,
lots to think about, lots of great suggestions.
Do you already have a buyer lined up? Try offering lower first. The seller will most likely accept whatever offer you make since he will be getting nothing out of the deal anyway(since it's already a short sale). Then you will play the waiting game with the bank. Go ahead and sign it and/or assigns and see what they say. They might counter back saying that has to be removed, but maybe not. If you don't have a way to buy it yourself, though, you should already have a buyer lined up or at least be running ghost ads to see how much interest there would be in this property. Locking up a great deal without a plan for it could be very frustrating, and also jeopardize the seller from actually selling his house in time to avoid foreclosure. just my thoughts.
I wish you luck on this deal!! It could be a win/win for all!

Rina

I appreciate everyones input on this matter. When it comes to the assigning part, I do have buyers lined for the property, it falls under a lot of my buyers criteria for their investments. Also, when dealing with banks, I usually go with the land trust method, knowing that in california an "and/or assigns" doesn't get considered. And if they don't go for that, to keep the deal, I will offer with just my name, either call escrow and change names for tax purposes, or and my investors name to title, and quit claim the deed later.

But thanks for the insight, you guys have been a great help.

If your Realtor told you the house was an approved Short sale,how did the Bank approve it for a short sale.Did some already submit a short sale package,if not you will need to submit one,put your name on the Buyers Line with and/or assigns and also try and have the bank pickup the closing cost for A-B closing so your buyer can pay the closing cost on B-C.You might put in an offer at 60% of Market Value.Re-evaluate the property for repair cost and go from there. Hope this helps any!

Good Luck & Good Investing

BryanSR,

My experience with Short Sales in my part of the country is that there is little negotiating. The banks have the property appraised and that is compared to a pricing table. Many larger banks won't go below 88%-92% of appraised value. Your best hope is if it's a small local bank. My experience has shown that smaller banks are more likely to "negotiate".

As for factoring in repair costs, I've also found that banks don't care. Just figure it in to your costs. In general, the fallacy here, and in many places, is that the banks "negotiate". They really don't. They compare to a table and as long as it fits the criteria of the table, they'll agree.

Keep in mind, also, that at the beginning of this year, there were over 700,000 REO properties that weren't even listed and haven't been listed. That number has since gone up. Even knowing that, I haven't seen any bank firesales on properties.

Regards,
Ryan Cook
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