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I am curious to know the various effective forms of advertising you are using to attract motivated sellers. Has anyone used post-it notes in going door-to-door? What has been your most successful marketing tool?

Regarding question #1 Nowadays if you google "financial calculator" or "mortgage loan calculator" you'll come up with a myriad of websites that will do the computation for you.

Hi Michael,

Thank you for taking the time to render your assessment and cautions regarding this investment. You bring up good objections that would behoove anyone to consider who is looking to take the plunge in the world of foreclosure investments. As part of my due diligence, I think it wise to address and clarify the issues you raised.

I agree that private money at a higher percentage costs more and would not be the best route if my intent were to buy and hold. However my intent is to buy and sell. The holding would only be for a short-term duration to alleviate the urgency and stress of a simultaneous closing while hoping, praying and sweating that the new buyer has their financing lined up before the bank decides to repossess. I approached a friend of mine with deep pockets about a 12% return and he is intrigued by the notion and wants to know more. Private funds also allows me the flexibility of requesting an interest-only loan without payments. That is critical considering that monthly payments on this alligator would preclude my involvement.

You mentioned 20% down on a REFI. Correct me if I'm wrong but once the bank files the notice of default, in a majority of the cases don't they accelerate the loan? Especially one that is in the seller's name...not mine. One reason I consider this a short sale candidate is the bank told the Sellers they had until October 12th to pay the arrears before they instigated pre-sale proceedings. At this point I'm operating under the assumption that they are doing just that since the bank has yet to respond to my phone call and fax offer (a copy of my Purchase and Sales Agreement with the Seller). I will be faxing the Authorization from the Seller in the next day or two followed by another call after 24 hours for it to enter their fax que.

The distance is certainly a concern. However myself and my trustee know a thing or two about the area and everything the sellers have told us is on par for the high-growth and rapid appreciation we've witnessed when we have passed through. Because I live in a medium-size town, it could be (and has been) a long wait before this opportunity arose locally. This property is located in a large metropolitan area.

Certainly one of the best questions to ask when taking the plunge is "What is the worst that could happen?". True you can't forsee everything but as Ron says "When you put yourself into a position where it is hard to lose...it's hard to lose." I've not made the seller any promises with regards to their credit. In fact I informed them that saving their credit is outside my jurisdiction. They've signed and notarized the CYA letter along with the other forms (Limited Power of Attorney, Escrow Letter, etc.) that came with Ron/Jeff's Short Sale manual...including Warranty Deed.

I welcome and appreciate your input. A very effective way for me to learn and have a better understanding of this process is to have it dissected as we walk through this process. At this point it seems the worse that could happen as long as I stay keenly involved would be my investment of time, lead purchase ($29.95), overnight fee ($20), and binder deposit ($10) would be lost should the bank decide not to play ball.

Thanks again,
Carey

My intent is to sell to a new Buyer. That new Buyer would be an Owner Occupant if I can arrange the private funding which would allow for a longer holding time (and maximium sale price) if necessary. Or that Buyer would be an Investor (discounted enough to warrant their involvement) if the date of closing quickly approaches. I agree that 72% LTV in and of itself is a good deal without the discount. However in all of the private lending material, Ron & others advocate no more than a 65% LTV ratio to attract your lenders. Am I missing something? BTW the propery is assessed at 190K. So my offer to the bank will be 215K. The BPO or appraisal will come later. The Seller did tell me it was appraised at 320K in 2004 and the area has risen steadily since. So their mention of 360K appraisal is speculative at the moment. The Sellers tell me the property is in pristine condition so rehab doesn't appear to be an issue. I've yet to see the property as it is in another county 150 miles away. I'm all for selling as is if I can attract a Buyer before the auction. But if there is no downside to asking for a discount from the bank, I regard that as maximizing the investment. Thanks for asking.

I've been wondering all along if this is an ideal SS candidate. The reason for pursuing it initially is to get the LTV from 72% to 60% to potentially attract a private lender. But I'm not stuck on that notion. The Seller has signed, notarized and witnessed the docs including Warranty Deed and faxed them to me. The originals are in the mail. (The property and Seller are out of town). I thought it would be a good idea for someone other than myself to initiate the correspondence with the Lender. But I'm open to suggestions.

How would I go about finding a good and experienced negotiator to represent my interest to the Lender? I have a contract on a house in default valued at $360K with $260K owed on the balance. Having taken Ron & Jeff Kaller's course in Short Sales I know just enough to be dangerous and negotiate effectively with the Seller. The bank however would probably eat my lunch. I need someone who understands the nuances and language of Loss Mitigators.