Another Short Sale Closes Friday! $4,500

Michael great job, it's nice to know things are moving out there.

Michael,

that is a pretty cool setup you have there!
thanks for sharing!

valerie

Obviously, there are ways to make money in this market; you just have to use that thinker beteen your ears!!

Thanks guys! For me it beats the heck out of actually working short sales. I know a lot of people do and make great money. I just don't have the time.

Michael Mangham
MD Home Acquisitions LLC

So many shortsales in my area. i just located one that sold for $6300.00,comps out for around $230,000.00 public records! unbelievable. My question is how do you secure your commission or profit? Thanks in advance

Who do you use as a short sale specialist? Can you use your realtor for that or ?

Awesome, Michael! Way to go...

That is SO great!

Like Dallas, I am wondering how do we find a good short sale specialist? Because like all things, I know that all of them are not created equal.

My guy is a realtor, but like everything else, 98% of realtors will waste your time. Find someone that specializes in negotiating short sales, its an art! I make REO offers through listing agents mostly. I don't just have one realtor except for my short sale guy and that is ALL he does.

Michael Mangham
MD Home Acquisitions LLC

Go to the most successful agencies that you know of and ask if they have a person that ONLY does short sales. I can't stress that enough, they ONLY do short sales! Meet with them and ask if they would be interested in having you supply them with unlisted short sale leads. Then ask how you would be compensated. Get several at first, then narrow it down to he who performs!

Michael Mangham
MD Home Acquisitions LLC

Wow Michael! That is an awesome idea! I'm talking with my partner today about it haha.. Glad you are doing well this year!

What means do you use to find your pre-foreclosures?
thanks,
Shirley

very well! One question about the compensation. Did you work out a contractural agreement with the broker or what? Im sure you are 150% legal, but many past posts have dealt with what is legal, borderline and illegal for an investor to do. Also, is your arrangement across the board or do you have to specific each short sale lead with them?

Great work Michael!

Shirley, I find my leads from county websites. In Colorado the first official legal notice a homeowner receives is called The Notice Of Election and Demand. We work four counties and average 400 per week. I don't know what these notices are called where you are at, could be Notice of Default, Les Pendens whatever, just call your county and ask them if you don't know. Usually you can find the notice list in the Public Trustee's site on the county website or if your counties don't supply that info on line you will have to go to the courthouse itself.
Steve, I have a simple agreement, a marketing fee (bird dog)with the agency for each lead I provide that closes. 25% of net profit. When the deal closes I get a check and we each get a copy of the signed agreement with the specific address of the property sold noted on the agreement.
Still searching for those leads for you around Birmingham. My software is picking up a few REOs here and there but no pre auction properties yet. Don't know if the records are only in the courthouse and not online anywhere? That may be the case because I am sure there are a lot of pre foreclosures in the zips you gave me. Check that out, see if the default notices are online or you have to go to the courthouse to get them. I'll keep checking.

Michael Mangham
MD Home Acquisitions LLC

Making it happpen. You are right. Find someone who does NOTHING but short sales. You can also get paid per lead or a piece of the pie. Way to go!

NOT just one way of doing things-multiple streams of income.

GREAT JOB!

Working SMARTER instead of harder.

You're on a ROLL, you may have to adjust your goal of 40 huh?

If you already are finding the leads, you might as well direct them to someone that will work them. I will keep this in my notes. Thanks for sharing.

Thanks so much for the info.

I am specifically doing L/Os but in my mkting for these I am sure I will come across a number of deals (especially here in So CA) that will fall into the SS category. Could be a gold mine!

Thanks!

Karen

on line so I will make a "journey" to the courthouse. Very congested, no reasonable parking...I know ESCUSES EXCUSES. Ive got the additional zips about finished and will forward to you.

Thanks for your answer to my question. Im gonna try the same thing!!

Michael

Congratulations on a job well done.

Regards
Tom

What source are you referring to?

Michael Mangham
MD Home Acquisitions LLC

I have been working for the last month to find this person in the Chicagoland suburbs. I found someone - great post Michael

As a bird dog, I see a lot of potiential in this idea of submitting leads to short sale specialist. In my lead sources of sellers, I am always generally just looking for sellers that are willing to let go of their property basically at 40% or more below FMV. Most times of course, those deals are few and far between. Now with your idea, tons more of my seller leads are actually usable. I am first going to find short sale specialists in all different areas of the country, and start utilizing my seller leads of sellers who are upside down in thier property, or soon facing foreclosure. Just another form of bird dogging Love it!!!

If anyone knows of any great short sale specialists, (it doesn't matter where they are located, because my lead sources are from all over the US) please send them my way. I have lots of leads.

Thanks so much for your post.

Michelle

Michelle, you got that right! It's actually easier than bird dogging, you don't have to know ANYTHING about the property. Just that it's upside down and the owners what to talk to some one about a short sale. Boom, supply the lead to your short sale guy and on to the next!
A real bird dog has to know how to evaluate ARVs, repair costs, holding expenses ETC and present the deal to his buyer. Doing this all you have to do is be professional enough to establish a relationship with a short sale specialist and supply good leads!

Michael Mangham
MD Home Acquisitions LLC

Yes, Michael, this information you gave is really awesome. This opens up such opportunites to do deals. I can't even sleep because I am so excited about it. I've already got it in the works.

Thanks to your idea, I now have tons of "new" leads to work with that I had previously disregarded until now...wow... Now to look for savy short sale specialists since I have no experience in preforeclosures or shortsales. I will be actually able to help those in distress, and hopefully make some EASY cash in the process. I know it takes a long time generally for a short sale (sometimes as long as a year) but I can see how once you have them in the pipeline, the income from them will just start pouring in.

By the way, congrats again on your continued success. I enjoy reading your posts. Very encouraging, especially when you share such great techniques and ideas.

Michelle

Thanks for the info. I'll go online and see what I can find and/or make a visit to the courthouse! Love it!
Shirley

Sweeeeet....4500 for an hr or two????? That is great work! !!! Kudos to you for making things happen!!!!

I love it!
Would your specialist have any associates they can refer the rest of us to for other states? (ok, i just saw your other post that gave suggestion on how to pick and narrow down a chosen specialist. THANKS!)
With the new federal legislation coming up, i am told that short sales are expected to increase as banks will be required send an actual bank representative, and not a trustee,to call/physically sit down with borrowers to suggest options before proceeding with foreclosure.
Thanks!!!!!!!!

Michelle, You are right about short sales taking some time and that you just have to fill and keep your pipeline full and in time your "eggs" will start to hatch. Then you will have a steady flow after the first 6 months or so. However just like every deal is different so is every short sale deal. The one that closes today, we supplied the lead the first week of January! This is a record!! 3 months is fast, 6 months is average I would say. We closed on one the end of January that we started back in May, so, you never know.

Shirley, when you find where you can access the notices of default, they should have the judgment amount listed (the amount they owe the lender)Then you determine current market value (we use totalview for this quick evaluation) and if they are upside down that's a lead!
Here is what we do with the leads:
1. Do a reverse address search on 411.com (or some skip tracer type site) If we can find a phone number we call them.
2. No phone number found or can't contact by phone, we send out a mailer.
3. No Response, we door knock!

Jay, thanks for the kind words. I say an hour, but that does not cover the ones that did not go through, the calls, letters, door knocks that did not produce, just like every strategy in REI, it's a numbers game.

Everyone, I have had multiple requests to supply my marketing agreement that I have with my short sale guy. This is what I suggest: When meeting with the short sale specialist have THEM supply the agreement! Whatever terms you agree on, have the agent supply the agreement, not you. If you feel it is needed, have your lawyer look it over.
Also, you must determine how the agent will keep you informed on where they are in the process on each of your leads.

I have also had requests for my script and mailer that we use and send out to our short sale leads. PEOPLE! If you can't figure out what to say on the phone and in your mailer yourself, give it up! You need to get their permission to have your "expert" call them and go over their options. Set a time for the call and supply your S.S. guy the lead and the time he needs to call.

There are MILLIONS of short sales out there, help distressed people and make some money doing it!

Michael Mangham
MD Home Acquisitions LLC

Yes, creating a script of what to say or what to mail out to these people in distressed situations should be easy, and I already have that in the works, as well as how to present my service for leads to the SS specialist. I even figured out how to find ss specialists by going to the MLS (for any area) and finding properties that are short sale listings that are listed by a realtor. In my findings, many of the REO listings are with the same realtor of that particular area and each RE firm, hence they surely are your contact for a short sale specialist, right? So that is how I am going to first find these short sale specialist.

Thanks for the idea to have the short sale specialist supply the marketing agreement, and that makes total sense because you may very well have different agreement with each and every short sale agent you choose to provide leads to. Some may agree to 25%, some may agree to less. It is much like working with different investors that I property scout for. Each one offers a different referral fee they are willing to pay, so my agreements are not across the board wtih everyone.

As for calling the distressed sellers, figuring what to say to them should be easy to anyone really. With my leads, I don't even have to do a phone number look up, as I already have the phone numbers. Much in the way I prospect my leads in finding properties for investors, (I call them, discuss the property details, repair cost, discuss their distressed situation, and then offer a possible solution, I inform them them I work with a large group of investos who possibly will be interested in their property, and may I have permission to pass their info on to an investor, (which I will already have an investor lined up to call as soon as I am off the phone with the seller). It is the same thing in the case if it is a short sale situation, just ask the homeowner for their permission to forward their information on to your short sale specialist to discuss their options with them. EASY, EASY. I think some folks are making this harder than it has to be when in fact, your conversation with the seller will just flow, once they quickly realize you are coming to their aid. For me to say this is easy is saying a lot too because I am basically very shy with talking to strangers, but once I tell them who I am, and the purpose of my call, it just flows for me. If I can do this, anybody can.