Comment

Comment by Tracy Howard on December 14, 2009 at 12:28pm

I just got this week's notices of default, and there is a huge uptick this week as compared to 2 weeks ago: 779/420. Has anybody else noticed this and does anyone know what is causing it?

Comment by Anna Mackey SDHS on December 14, 2009 at 12:17pm

Tracy, no need to call, just send me your email address... Mine is [email protected]

Comment by Tracy Howard on December 14, 2009 at 12:12pm

Anna, I just sent you an email. Should I still call you?
Tracy

Comment by Tracy Howard on December 14, 2009 at 12:06pm

Absolutely right, Steele. Those who have to resort to back room tactics are not doing it right.

There is no reason why an investor or anyone shouldn't be able to profit from this market if he can.

Comment by Anna Mackey SDHS on December 14, 2009 at 12:02pm

Hi Tracy,

Please give me a call at 858-254-8497

Thanks :0)

Comment by Tracy Howard on December 14, 2009 at 11:59am

Hi, Dawn,
I don't attend the Trustee's sale with them. I give them comps so they can make a decision on which (if any) properties to bid on. They attend the sale and bid on those they think are the best buys for their situation.

After they have renovated/remodeled/repaired the property, then I list it and sell it for them. Good business in this market, because they don't think they have to get a huge price for every house, and they don't automatically think their's is the best on the block, although often it is.

Tracy

Comment by Steele V. Propp on December 14, 2009 at 10:17am

As most investors are cash buyers who are getting a good deal, I see no reason why they shouldn't be able to market at a profit. Especially when offering terms like Bryant mentioned.

There does seem to be some confusion on the part of real estate agents regarding flipping. Flipping in and of itself is not illegal. Yes, there are wrong ways to do it (read illegal), but one can do it legally all day long.

Comment by Bryant Tutas on December 14, 2009 at 9:37am

Lots of flipping going on in my market right now. Most are properties bought at the court house foreclosure sale. Some are buyers that just got a good deal. I just closed on 2 flips on the listing side last week.

Both were bought cash at good deals and then sold with owner financing. One paid $38,000 and sold for $75,000 with 30% down. The other bought at $69,000 and sold for $120,000 with 30% down.

The resale prices were a tad higher (10%) than market but the non qualifying and no closing cost financing made them worth more to the buyers.

Both investors owned for less than 90 days.

The $38k property was bought at the courthouse. The other was purchased as an REO through me as the buyers agent. We made offers on 14 properties and ended up with a good deal.

Comment by Mori Langshaw Sr on December 14, 2009 at 4:53am

Tracey, those are the good ones.

Regarding the "flippers", disclosure is the key component here. The "iron clad Option Contract" states what the Investor intends to do. It is NOT mortgage fraud even though some agents are claiming so. The FBI or any equivalent agency has NEVER called Short Sale flipping "fraud". They can't. The key is that the Investor is disclosing to the current mortgage company - "may resell at a higher price" and disclosing to the buyers lender (if there is one) that they are buying/closing the same day. Either way, they are disclosing the intent to ALL parties. It used to be upfront on "page 1" sotospeak, on the option contract but banks saw that and said, "no way" and would NOT approve the short sale. Now attorneys are putting the "disclosure" on page 3 or 6 or 9. :-( (you get the point). But they are still disclosing :-X.

Well, this became so prevalent (esp in Florida where a lot of the National Guru Short Sale Flippers do business) Bank of America instituted "Line 10" on their approval letters (look at it. I have actually closed a few BofA short sales if you can believe that...geesh) that states, the buyer must hold the property for at least 30 days. Now you are starting to see a lot of banks follow suit in their approval letters. FHA/VA has always had a 90 days seasoning rule so that is why you always see "No FHA" in MLS' but conventional banks are hip to the game and are starting to insert language like BofA.

Stay tuned for these "Equity Partnerships" now. Instead of these "Transactional Funders" that gave you money for 1 - 24 hours to flip your deal so you can close same day, since you cant close same day (BofA Line 10, its commonly called), you will see Investors/Companies that will STILL fund your deal for 30/60/90 days so you can "flip" it but its not a "loan". With a loan, you have rules/regulations/laws for lending money. With Equity Partnerships, you don't. They are not described as mortgage originators so they do not have to disclose as mortgage orginators.

Either way, Short Sale Investors are getting around whatever the Government or Lending Institutions implement. To feel better about these Investors look at their business like yours.

IE. They get a contract for sale on a property they are going to short for, lets say, $100k (its worth $150k). They find a buyer for $150k, get the deal approved for $100k. After closing fees, commissions, etc, they walk away with $20k. They justify the $20k and a "finders fee". Similar to a buyers agent commission, IMO. I know that that 20% buyers commission is absurd but you get the point. Investors will ALWAYS make more than agents on a per transaction basis, so its....eh.

Personally, I dont touch "flippers" anymore, even though I work with Investors who want to get a killer deal on a short sale. I submit (Investor) offers to the bank and through negotiation, get them approved (sometimes) at great discounts. The bank has done their due diligence and approved my offer and the Investor closes. That is the extent of my involvement in THAT transaction. Meaning, now the Investor wants to "flip" it, I do NOT list that same transaction. Thats just me..... Gosh, Im tired.

Comment by Dawn Barrier eXp Realty Vegas on December 12, 2009 at 9:41am

Tracy, Do you attend the foreclosure sale with them or they contact you afterward? Just curious.

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