Re: Great post.

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Re: Great post.
Posted by Tricia_CA on June 13, 2009 at 8:59 PM
In Reply to: Re: Great post. posted by bukzin on June 13, 2009 at 5:02 PM
: : : Just had to post this, as I believe most of you will either relate to it from experience or get motivated. I'm an agent have been working on a short sale in the IE since February. The f/c had been postponed several times, the final time being the week of June 10th, here are the facts:
: : : 1st-NTS $408,000
: : : 2nd-$20,000 (non-purchase money HELOC)
: : : Fully qualified buyers waiting patiently for bank approval for an offer of $199k, some concessions. 2nd refuses 10% offer from 1st. We're at a stale mate, still trying to negotiate, make some headway (1st agrees to $3k)2nd still doesn't get it. 1st goes to sale for $132K. Investor bids just over and wins, he then contacts me. I hook them up with the buyers and they have a contract under the same terms, will open escrow as soon as the Trustees Deed is recorded. There's a lot more to the story and I won't bore you all with the details, but I am still shaking my head. So a win for the investors, a loss for the 2nd and FHLMC and the previous owners who were trying to get the collection agency off their back. CHEERS TO THOSE WHO TOOK A RISK!
: : Assuming 8% sales cost (commissions, escrow, title, transfer fees, buyer credit, etc.) the investor will make a cool $50K in less than 30 days on a $132K investment. That's 37% return in 30 days on his money or 444% annualized if he could do that every month.
: +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
: Would you mind sharing how many man-hours you put into this as
: an agent?
: And what your net commission was?
: Thanks,
: Bukzin
******************************************************************
Sadly, this was not a success story for the listing agent(me). I did manage to secure a 1% referral fee for connecting the Investor (who is also an agent)with the buyer's agent, if they close. Good question on the number of man hours. You have the normal marketing, fielding of calls showings and contract reviews for written offers. PLUS the additional items:
*Changing of the locks back after Wells Fargo needed to winterize the house that wasn't theirs yet.
*Faxing the hardship package at least 8 times, as both the first and the second would lose them.
*Calling to follow up every few days to see if they recieved the packette.
*Asking the customer service rep.some questions, only to find out he knows nothing about loans, he's only there because he's bi-lingual.
*Faxing a hardship package to the collection agency who is now handling the 2nd.
*Faxing over a HUDI to the collection agency with the approved 6% commision
*Recieving a call from the collection agency explaining that I can only recieve 5% commision
*Explaining to them this was a Freddie Mac loan and they do not allow reduced commision.
*Explaining to the manager at the collection agency who Freddie Mac and Fannie Mae are.
*Fielding calls from the neighbors and the Sheriff's Department because a disturbed homeless man moved into the abandoned motorhome on the property.
*The time it took to get the abandoned 1973 Field and Stream motor home towed, after the neighbors helped oust the homeless guy.
*Submitting a total of 3 offers, as the first 2 buyers got tired of waiting.
*negotiating back and forth with the first and second on how much the second wanted ($4033.06) versus offered ($2,200 then $3,000). YES, WE WERE ONLY $1,033.06 apart.
Sorry, I got a little carried away with the details, but it's all true...I can only laugh at this point. I happened to know the people who owned the house and did it more to help them, with the hope of making a commission if we closed. The buyers are VA, and it is my understanding there is not a seasoning requirement for VA loans. The Investor/agent has done several "flips" like this in the last several months and has successfully sold the properties, per my research, so he must have a connection with a lender. Also, Wells had a BPO done about 60 days before and it came in at $208k before. I guess we'll have to see if this is a true success story, but part of my point was that FHLMC really lost out dumping this property for this amount.
I'll Post with the final results...
Edwin, You can contact me directly via my email to discuss further.

Follow Ups:

Re: Great post. JCe 9:33 PM, 07/02/09 (0)

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Name : E-Mail : Subject :
Comments: : : : : Just had to post this, as I believe most of you will either relate to it from experience or get motivated. I'm an agent have been working on a short sale in the IE since February. The f/c had been postponed several times, the final time being the week of June 10th, here are the facts: : : : : 1st-NTS $408,000 : : : : 2nd-$20,000 (non-purchase money HELOC) : : : : Fully qualified buyers waiting patiently for bank approval for an offer of $199k, some concessions. 2nd refuses 10% offer from 1st. We're at a stale mate, still trying to negotiate, make some headway (1st agrees to $3k)2nd still doesn't get it. 1st goes to sale for $132K. Investor bids just over and wins, he then contacts me. I hook them up with the buyers and they have a contract under the same terms, will open escrow as soon as the Trustees Deed is recorded. There's a lot more to the story and I won't bore you all with the details, but I am still shaking my head. So a win for the investors, a loss for the 2nd and FHLMC and the previous owners who were trying to get the collection agency off their back. CHEERS TO THOSE WHO TOOK A RISK! : : : Assuming 8% sales cost (commissions, escrow, title, transfer fees, buyer credit, etc.) the investor will make a cool $50K in less than 30 days on a $132K investment. That's 37% return in 30 days on his money or 444% annualized if he could do that every month. : : +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ : : Would you mind sharing how many man-hours you put into this as : : an agent? : : And what your net commission was? : : Thanks, : : Bukzin : ****************************************************************** : Sadly, this was not a success story for the listing agent(me). I did manage to secure a 1% referral fee for connecting the Investor (who is also an agent)with the buyer's agent, if they close. Good question on the number of man hours. You have the normal marketing, fielding of calls showings and contract reviews for written offers. PLUS the additional items: : *Changing of the locks back after Wells Fargo needed to winterize the house that wasn't theirs yet. : *Faxing the hardship package at least 8 times, as both the first and the second would lose them. : *Calling to follow up every few days to see if they recieved the packette. : *Asking the customer service rep.some questions, only to find out he knows nothing about loans, he's only there because he's bi-lingual. : *Faxing a hardship package to the collection agency who is now handling the 2nd. : *Faxing over a HUDI to the collection agency with the approved 6% commision : *Recieving a call from the collection agency explaining that I can only recieve 5% commision : *Explaining to them this was a Freddie Mac loan and they do not allow reduced commision. : *Explaining to the manager at the collection agency who Freddie Mac and Fannie Mae are. : *Fielding calls from the neighbors and the Sheriff's Department because a disturbed homeless man moved into the abandoned motorhome on the property. : *The time it took to get the abandoned 1973 Field and Stream motor home towed, after the neighbors helped oust the homeless guy. : *Submitting a total of 3 offers, as the first 2 buyers got tired of waiting. : *negotiating back and forth with the first and second on how much the second wanted ($4033.06) versus offered ($2,200 then $3,000). YES, WE WERE ONLY $1,033.06 apart. : Sorry, I got a little carried away with the details, but it's all true...I can only laugh at this point. I happened to know the people who owned the house and did it more to help them, with the hope of making a commission if we closed. The buyers are VA, and it is my understanding there is not a seasoning requirement for VA loans. The Investor/agent has done several "flips" like this in the last several months and has successfully sold the properties, per my research, so he must have a connection with a lender. Also, Wells had a BPO done about 60 days before and it came in at $208k before. I guess we'll have to see if this is a true success story, but part of my point was that FHLMC really lost out dumping this property for this amount. : I'll Post with the final results... : Edwin, You can contact me directly via my email to discuss further.

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