Michigan’s Struggling Real Estate Market is Getting Help from a New Online Search Tool for Finding Homes for Sale
There is a new way to shop for a home by a simple touch of the computer. The Quick Home Finder is the answer. Larry Morris is a buyer broker who has years of experience buying foreclosure homes for a very large real estate investor. Morris has managed his own portfolio of property as an investor and he knows how to get a great buy in real estate. He is doing full time for his home buyers.
Home buyers can obtain information about new properties coming on the market daily through The Quick Home Finder, LLC. Many good deals and new listings are added each day. Morris has made this into a system that works for buyers. Buyers can go to The Quick Home Finder and browse the site hassle free. When they are ready to see a property, they have the expert advice of Larry Morris and his team available for assistance.
“Realtors have access through the MLS to every home that is listed for sale within a certain area. The best service I have seen on the market in Michigan is The Quick Home Finder. This is the new free, quick and easy way to use the internet to search for homes on the MLS”, says Ralph Marcus Maupin, Jr., (Mark) Co-founder of National Real Estate Network LLC.
Contact:Larry Morris1 (248) 544-9040 1(888) 851-3710For more information: http://www.TheQuickHomeFinder.com
The Quick Home Finder.com services the following Counties, Townships and Cities:Oakland County Addison Township, Auburn Hills, Berkley, Beverly Hills, Bingham Farms, Birmingham, Bloomfield Township, Clawson, Commerce Township, Farmington, Farmington Hills, Ferndale, Franklin, Hazel Park, Highland Township, Holly, Holly Township, Huntington Woods, Independence Township, Keego Harbor, Lathrup Village, Lyon Township, Madison Heights, Milford, Milford Township, Northville, Novi, Oak Park, Oakland Township, Orchard Lake, Orion Township, Oxford Township, Pleasant Ridge, Pontiac, Rochester, Rochester Hills, Royal Oak, Southfield, South Lyon, Troy, Walled Lake, Waterford Township, West Bloomfield Township, White Lake Township, Wixom Wayne County --Belleville, Brownstown Township, Canton Township, Dearborn, Dearborn Heights, Grosse Pointe Shores, Grosse Pointe Woods, Hamtramck, Inkster, Livonia, Northville Township, Plymouth, Redford Township, Riverview, Romulus, Taylor, Trenton, Wayne, Westland, Wyandotte. Washtenaw County: Ann Arbor, Bridgewater, Chelsea, Dexter, Manchester, Salem, Saline, Superior Township, Whitmore Lake, Whittaker, Willis, and YpsilantiLivingston County:Brighton City, Cohoctah Township, Deerfield Township, Green Oak Township, Handy Township, Howell City, Iosco Township, Village of Fowlerville, Brighton Township, Conway Township, Genoa Township, Hamburg Township, Hartland Township, Howell Township, Marion Township, Putnam Township, Unadilla Township, Village of Pinckney
Tuesday, January 8, 2008
Is Big Better?
by: Ralph Marcus (Mark) Maupin, Jr.
At one time in my life I was buying 7-8 Houses a month, fixing them up and then reselling them. Then I got the bright Idea that if I can buy and sell 7-8 a month, I can buy and sell 80. This was a choice that eventually led me to Bankruptcy. This has not been that long ago. Twice in my life I have made a lot of money and then took on a large growth spurt and got a large learning experience in business failure. The last one resulted in bankruptcy. It is hard when things are going well to not be seduced by more is better. When you have something working for you, it is easy to become overconfident and start to think of multiplying it. As with things in life, you want to be sure when you take on something, that you complete it. “Pumping up the volume” puts you at risk of not having the structures and being set up to deliver on what you are committed to. You naturally encounter problems that are not present on the smaller scale. It is hard when things are going well to not be seduced by more is better. I had to learn personally that “Pride goeth before the fall”. The bottom line is that there are always good deals in Real Estate! I say measure your success one house at a time. Buy investor property—fix it up, resell it, rent, do a lease-option, but do it one house at a time. Multiple Purchases? One of the most common mistakes I see in business is where investors come into the business and think they need to do multiple houses at a time. Try this on: Try doubling the cost you think it will take to fix the property, doubling the time you think it will take to rehab the property and figure your holding costs doubled (insurance, mortgage payments, taxes, lights, gas, rehab cost). Great deals in Real Estate don’t come in houses fixed and ready to sell. The great buys come from houses that need work. If you are just getting started, stick to cosmetic rehabs (paint and carpet), Don’t take on major rehabs. It will take time to develop rehab crew. The most successful people I see in Real Estate take on doing houses one house at a time. Failures are great if you look at them and ask what action was missing would have made a difference. Hard money lenders? Pitfalls are using very expensive money. For years I ran a business financed on money from Real Estate Investors who are called “Hard money lenders” who look at collateral and loan money based on that interest can be 18% higher when you figure in the closing costs. When you get multiple properties in this condition you are going to have interest payments that are going to be double—triple what conventional financing is in Real Estate. Combine that with the common lie we tell ourselves that we can repair the house and put it back on the market for sale or rent in a short time. Your overhead would rise because you would need a staff to manage and rehab everything. Can you see this is a recipe for upset for everyone? Now if you are doing one house at a time---your overhead will probably stay very low, very little staff, you have limited you expenditure of time, money, and aggravation. At one time my overhead was + $50,000.00 per month. I had to depend on other people to do everything, including checking the work. The sale I was making was going 100% to payments and I kept telling myself I will turn it around tomorrow. Now I had a house not finished, and houses being lost in foreclosure and for taxes. Now I am a motivated seller and bankruptcy was looming large. My overhead was still there, I attempted to wholesale deals, so I decided I would no longer do find, repair, and resell homes. I will find great buys and sell them to other investors. Starting Over Basically I started my business over. It takes a great amount of time to get list of investment deals. This business is built on the concept you can borrow you way out of debt. It does not work. You have family, friends, business associates that get hurt and destroyed. I’m not saying this to tell you a sad story, but rather in the hopes out of sharing it, some one else can avoid the pain of my mistakes. To see what you can learn for yourself. I am 53 years old and starting over. I have the knowledge to build a business with the proper foundation. I teach Real Estate investing class now looking at pitfalls and what is needed to do one deal at a time. My advice to you on handling real estate transactions is : Use Title companies What can happen to you when you fail to get title insurance. We had a participant in one of our seminars. He purchased a house to fix it up. He invested over $40,000 into the home in both repairs and purchase price. When he went to refinance he found out the person he purchased the house from was not in the chain of title. In other words, he did not have a clear title. Whenever you purchase a home always close through a title company with title insurance on the property. Title insurance is insurance insuring the borrower or lender that they get the property with marketable title. The will only insure the property for the purchase price or for the amount of the mortgage. Use a Lender that makes good common sense. Interview lenders. Go to Real Estate Investor Clubs to find out from other investors who are the companies doing the best job. Is there risk when you use a lender that wants to cross collateralize loans or wants personal guarantees? One lender I know will get one-two year mortgages and demand a right to lean all the properties you own on the loan you are getting. Just beware if you are buying the property to fix up and resell there are things that you don’t always plan on like: twice as much rehab cost as you planned for, longer marketing time than you initially thought resulting in added holding costs, or maybe the market moves the wrong direction and you can’t sell so you rent it. Now one of your other properties or even your personal residence needs to be refinance. You now have lien showing against the property. Now what do you do? Think before you jump. If you have purchased the property right, you should be able to borrow money based on the equity of that property---not your home and other properties. This same lender will ask for a personal guarantee signed by you, your wife, and your partner. This personal guarantee allows his mortgage company to lean anything the partner and wife own. Not only that, but this particular lender demands that you use a Title Company he owns. Now when you want to sell another one of your houses and this same cross collateral loan will show up on any property you are selling. Now you are faced to use his title company and he won’t release his loan. Beware of putting yourself in a situation where you are using a person who controls the lending, title work, the appraiser, and Real Estate Company. Do you think if you had your title work placed with a company the Lender had ownership in you might run into a problem getting the documents released or have a clean closing at the same title company. Why risk letting human emotions drives a stake into your deals. Keep an arms length distance inside your dealings. If you are selling homes or wholesaling property, let the buyer find his own lender and make sure you get an independent title company. Make sure there is not a conflict of interest in the Title Company, Mortgage Company, and Real Estate Company. Keep the integrity in the deal. I am sure there are title companies, real estate companies, and mortgage companies, where there is common ownership that run very good businesses and can separate the conflicts of interests and profit centers. Make sure you receive proper disclosure of the common ownership. You can always look at the volume of business they are doing in each business and check with the state of Michigan Licensing Dept. for any complaints against the firm. The web-site is www.michigan.gov. Feel free to check out my Web Sites: Free Forms and Information: http://www.MegaEveningEvent.com , http://www.DetroitInvestmentHomes.com or http://www.MrLeaseOption.com
At one time in my life I was buying 7-8 Houses a month, fixing them up and then reselling them. Then I got the bright Idea that if I can buy and sell 7-8 a month, I can buy and sell 80. This was a choice that eventually led me to Bankruptcy. This has not been that long ago. Twice in my life I have made a lot of money and then took on a large growth spurt and got a large learning experience in business failure. The last one resulted in bankruptcy. It is hard when things are going well to not be seduced by more is better. When you have something working for you, it is easy to become overconfident and start to think of multiplying it. As with things in life, you want to be sure when you take on something, that you complete it. “Pumping up the volume” puts you at risk of not having the structures and being set up to deliver on what you are committed to. You naturally encounter problems that are not present on the smaller scale. It is hard when things are going well to not be seduced by more is better. I had to learn personally that “Pride goeth before the fall”. The bottom line is that there are always good deals in Real Estate! I say measure your success one house at a time. Buy investor property—fix it up, resell it, rent, do a lease-option, but do it one house at a time. Multiple Purchases? One of the most common mistakes I see in business is where investors come into the business and think they need to do multiple houses at a time. Try this on: Try doubling the cost you think it will take to fix the property, doubling the time you think it will take to rehab the property and figure your holding costs doubled (insurance, mortgage payments, taxes, lights, gas, rehab cost). Great deals in Real Estate don’t come in houses fixed and ready to sell. The great buys come from houses that need work. If you are just getting started, stick to cosmetic rehabs (paint and carpet), Don’t take on major rehabs. It will take time to develop rehab crew. The most successful people I see in Real Estate take on doing houses one house at a time. Failures are great if you look at them and ask what action was missing would have made a difference. Hard money lenders? Pitfalls are using very expensive money. For years I ran a business financed on money from Real Estate Investors who are called “Hard money lenders” who look at collateral and loan money based on that interest can be 18% higher when you figure in the closing costs. When you get multiple properties in this condition you are going to have interest payments that are going to be double—triple what conventional financing is in Real Estate. Combine that with the common lie we tell ourselves that we can repair the house and put it back on the market for sale or rent in a short time. Your overhead would rise because you would need a staff to manage and rehab everything. Can you see this is a recipe for upset for everyone? Now if you are doing one house at a time---your overhead will probably stay very low, very little staff, you have limited you expenditure of time, money, and aggravation. At one time my overhead was + $50,000.00 per month. I had to depend on other people to do everything, including checking the work. The sale I was making was going 100% to payments and I kept telling myself I will turn it around tomorrow. Now I had a house not finished, and houses being lost in foreclosure and for taxes. Now I am a motivated seller and bankruptcy was looming large. My overhead was still there, I attempted to wholesale deals, so I decided I would no longer do find, repair, and resell homes. I will find great buys and sell them to other investors. Starting Over Basically I started my business over. It takes a great amount of time to get list of investment deals. This business is built on the concept you can borrow you way out of debt. It does not work. You have family, friends, business associates that get hurt and destroyed. I’m not saying this to tell you a sad story, but rather in the hopes out of sharing it, some one else can avoid the pain of my mistakes. To see what you can learn for yourself. I am 53 years old and starting over. I have the knowledge to build a business with the proper foundation. I teach Real Estate investing class now looking at pitfalls and what is needed to do one deal at a time. My advice to you on handling real estate transactions is : Use Title companies What can happen to you when you fail to get title insurance. We had a participant in one of our seminars. He purchased a house to fix it up. He invested over $40,000 into the home in both repairs and purchase price. When he went to refinance he found out the person he purchased the house from was not in the chain of title. In other words, he did not have a clear title. Whenever you purchase a home always close through a title company with title insurance on the property. Title insurance is insurance insuring the borrower or lender that they get the property with marketable title. The will only insure the property for the purchase price or for the amount of the mortgage. Use a Lender that makes good common sense. Interview lenders. Go to Real Estate Investor Clubs to find out from other investors who are the companies doing the best job. Is there risk when you use a lender that wants to cross collateralize loans or wants personal guarantees? One lender I know will get one-two year mortgages and demand a right to lean all the properties you own on the loan you are getting. Just beware if you are buying the property to fix up and resell there are things that you don’t always plan on like: twice as much rehab cost as you planned for, longer marketing time than you initially thought resulting in added holding costs, or maybe the market moves the wrong direction and you can’t sell so you rent it. Now one of your other properties or even your personal residence needs to be refinance. You now have lien showing against the property. Now what do you do? Think before you jump. If you have purchased the property right, you should be able to borrow money based on the equity of that property---not your home and other properties. This same lender will ask for a personal guarantee signed by you, your wife, and your partner. This personal guarantee allows his mortgage company to lean anything the partner and wife own. Not only that, but this particular lender demands that you use a Title Company he owns. Now when you want to sell another one of your houses and this same cross collateral loan will show up on any property you are selling. Now you are faced to use his title company and he won’t release his loan. Beware of putting yourself in a situation where you are using a person who controls the lending, title work, the appraiser, and Real Estate Company. Do you think if you had your title work placed with a company the Lender had ownership in you might run into a problem getting the documents released or have a clean closing at the same title company. Why risk letting human emotions drives a stake into your deals. Keep an arms length distance inside your dealings. If you are selling homes or wholesaling property, let the buyer find his own lender and make sure you get an independent title company. Make sure there is not a conflict of interest in the Title Company, Mortgage Company, and Real Estate Company. Keep the integrity in the deal. I am sure there are title companies, real estate companies, and mortgage companies, where there is common ownership that run very good businesses and can separate the conflicts of interests and profit centers. Make sure you receive proper disclosure of the common ownership. You can always look at the volume of business they are doing in each business and check with the state of Michigan Licensing Dept. for any complaints against the firm. The web-site is www.michigan.gov. Feel free to check out my Web Sites: Free Forms and Information: http://www.MegaEveningEvent.com , http://www.DetroitInvestmentHomes.com or http://www.MrLeaseOption.com
Pre-foreclosure One on One
The leading short sale and pre-foreclosure expert Nation wide is Jeff Kaller. His students have really done well in our Michigan Market. If they do well in Michigan depress real estate market you know Jeff Kaller is doing a great job of teaching the short sale business. This is one of his interviews for your reading. You can find great value from his workshops and his free reports and CD’s:
Check out his workshops- Jeff is doing them all over the country http://www.JeffsWorkshop.com (LA in January)
Pre-foreclosure One on One
By: Jeff Kaller Republished by: Ralph Marcus Maupin, Jr.
Homeownership is becoming an ambivalent reality for more and more Americans across the nation. Over the past seven years, homeownership numbers reached almost seventy percent, even with critical mortgage issues looming, the increase reflects the highest rate ever. However there are remains many Americans don't realize that homeownership and investments are still within their grasp.
We sat down with preforeclosure expert and real estate entrepreneur Jeff Kaller to gain some insight into the preforeclosure market.
Reporter: How do you explain the current real estate market?
Kaller: As interest rates rise, more and more homeowners are falling into foreclosure situations. Clearly this reality prompts flood of bargain-hunting investors in every real estate market and courthouse auction across the country.
Reporter: Is there general advice as to what to invest in first?
Kaller: Professionals specialize in niches, such as low-income housing or condominiums. Less-seasoned investors should stick with single-family homes in lower-middle- to middle-class neighborhoods, where resale likely will be easier
Reporter: Can you give us a working definition of preforeclosure short sell procedure?
Kaller: Sure, its really very simple, a procedure in which the borrower is allowed to sell his or her property for an amount less than what is owed on it to avoid a foreclosure. This sale fully satisfies the borrower's debt.
Reporter: What is your advice to investors regarding timing?
Kaller: The great thing about this market is that investors can get in the game before or after auctions, too. It’s also possible to try to buy directly from homeowners beforehand or from lenders who is successful in the auction.
Reporter: As an investor, are there general legal issues that stand out?
Kaller: Here is an important pitfall: Some states give foreclosed homeowners time to reclaim their property by paying the auction price, often plus an additional percentage. For example in Colorado, homeowners have 75 days (though the state is set to eliminate that grace period). So you could spend tens of thousands of dollars remodeling a house, only to have the original owner grab back the newly improved home.
Reporter: It appears professional training is the key for a profitable investor venture. Can you give a few “no brainer” reasons for preforeclosure investing?
Kaller: Absolutely, for one, “Instant Equity,” many properties have equity available due to a purchase price below market value or ‘short sale’ on the part of the bank. Second, new construction is standard for many foreclosure properties due being one to two years old with builder warranties still in place. For investors, the property is ready to rent, such as preforeclosures; the sellers are often interested in renting the home as a tenant. This gives them time to repair credit and perhaps re-purchase the home in the future and if you are seeking the home for yourself, it’s ready to move in for owner occupied. The most important feature is you get more house for less money.
Check out his workshops- Jeff is doing them all over the country http://www.JeffsWorkshop.com (LA in January)
Pre-foreclosure One on One
By: Jeff Kaller Republished by: Ralph Marcus Maupin, Jr.
Homeownership is becoming an ambivalent reality for more and more Americans across the nation. Over the past seven years, homeownership numbers reached almost seventy percent, even with critical mortgage issues looming, the increase reflects the highest rate ever. However there are remains many Americans don't realize that homeownership and investments are still within their grasp.
We sat down with preforeclosure expert and real estate entrepreneur Jeff Kaller to gain some insight into the preforeclosure market.
Reporter: How do you explain the current real estate market?
Kaller: As interest rates rise, more and more homeowners are falling into foreclosure situations. Clearly this reality prompts flood of bargain-hunting investors in every real estate market and courthouse auction across the country.
Reporter: Is there general advice as to what to invest in first?
Kaller: Professionals specialize in niches, such as low-income housing or condominiums. Less-seasoned investors should stick with single-family homes in lower-middle- to middle-class neighborhoods, where resale likely will be easier
Reporter: Can you give us a working definition of preforeclosure short sell procedure?
Kaller: Sure, its really very simple, a procedure in which the borrower is allowed to sell his or her property for an amount less than what is owed on it to avoid a foreclosure. This sale fully satisfies the borrower's debt.
Reporter: What is your advice to investors regarding timing?
Kaller: The great thing about this market is that investors can get in the game before or after auctions, too. It’s also possible to try to buy directly from homeowners beforehand or from lenders who is successful in the auction.
Reporter: As an investor, are there general legal issues that stand out?
Kaller: Here is an important pitfall: Some states give foreclosed homeowners time to reclaim their property by paying the auction price, often plus an additional percentage. For example in Colorado, homeowners have 75 days (though the state is set to eliminate that grace period). So you could spend tens of thousands of dollars remodeling a house, only to have the original owner grab back the newly improved home.
Reporter: It appears professional training is the key for a profitable investor venture. Can you give a few “no brainer” reasons for preforeclosure investing?
Kaller: Absolutely, for one, “Instant Equity,” many properties have equity available due to a purchase price below market value or ‘short sale’ on the part of the bank. Second, new construction is standard for many foreclosure properties due being one to two years old with builder warranties still in place. For investors, the property is ready to rent, such as preforeclosures; the sellers are often interested in renting the home as a tenant. This gives them time to repair credit and perhaps re-purchase the home in the future and if you are seeking the home for yourself, it’s ready to move in for owner occupied. The most important feature is you get more house for less money.
The Quick Home Finder is the Latest and Greatest Home Search Site when Purchasing Real Estate in Southeast Michigan
Real Estate Buyers are Giving a Nod of Approval for this Fast and Effective Way of Property Searching
Real Estate One, Michigan, is a major investor in the latest internet research to bring the public what they want. The new age is that the customer wants to do more home hunting and choosing what they want to see. The Quick Home Finder is an easy to use, comprehensive way to find the perfect home to buy or rent. Whether looking for an investment property or dream home the trained staff of real estate insiders is ready to assist. The best news is the site is free. Larry Morris is a buyer broker who has years of experience buying foreclosure homes for a very large real estate investor. Morris has managed his own portfolio of property as an investor. He knows how to get a great buy in real estate and he does it full time for his home buyers.
Home buyers can obtain information about new properties coming on the market daily through the Multi Listing Service (MLS) computer network. Morris has made this into a system that works for general public. Anyone with a computer can go to http://www.TheQuickHomeFinder.com and review the site hassle free.
When you find a property or list of properties you want to see, choose Real Estate One for their services from access to see the property to financing and closing.Contact:Larry Morris1 (248) 544-9040 1 (888) 851-3710For more information: http://www.TheQuickHomeFinder.com
Real Estate One, Michigan, is a major investor in the latest internet research to bring the public what they want. The new age is that the customer wants to do more home hunting and choosing what they want to see. The Quick Home Finder is an easy to use, comprehensive way to find the perfect home to buy or rent. Whether looking for an investment property or dream home the trained staff of real estate insiders is ready to assist. The best news is the site is free. Larry Morris is a buyer broker who has years of experience buying foreclosure homes for a very large real estate investor. Morris has managed his own portfolio of property as an investor. He knows how to get a great buy in real estate and he does it full time for his home buyers.
Home buyers can obtain information about new properties coming on the market daily through the Multi Listing Service (MLS) computer network. Morris has made this into a system that works for general public. Anyone with a computer can go to http://www.TheQuickHomeFinder.com and review the site hassle free.
When you find a property or list of properties you want to see, choose Real Estate One for their services from access to see the property to financing and closing.Contact:Larry Morris1 (248) 544-9040 1 (888) 851-3710For more information: http://www.TheQuickHomeFinder.com
Lessons Learned About Mortgage Companies
By: Ralph Marcus (Mark) Maupin, Jr.Over the years I have learned that almost all investors want mortgages that will give them loans that include dollars for rehabilitation and renovation of investment properties. There are many investor programs offered by thousands of mortgage companies. Some Mortgage Companies have programs that will loan funds as part of the loan package money for rehab and renovation. Some have programs where they set up escrows for rehabilitation and renovations and have inspections on the work in process in order to get the next draw. Due to the vast number of rules and with lenders all having different policies we are now adding disclosures in all of our real estate purchase agreements and related forms to assure buyers are using lenders that have programs that work for borrower (buyer), seller, realtor, wholesaler and lender. We now use the following disclosure language in our purchase agreements, addendums, assignments, and buyer broker agreements: Lender and Title Company Restrictions. The buyer (s) and seller (s) agree that buyer (s) will disclose to buyer’s lender all relevant considerations regarding the purchase of this property. Due to the nature of this transaction, buyer (s) will only use a lender that allows buyer to receive funds from the seller to cover allowable closing costs, permissible allowances and expenses of rehabilitation and renovation. This purchase agreement is void if buyers (s) and/or their choice of lender knowingly violate state or federal laws that govern this transaction. If found in violation of applicable law, buyer agrees to forfeit their good faith deposit. Title Insurance Companies, as part of the services they perform, carry out the terms and conditions of the purchase agreement and any other relevant sales documents. They make sure that the purchase agreement and other documents you use in your real estate transactions are complying with what the lender, Title Insurance Company, and laws ask you to do. They review and check to make sure they put all charges on the HUD statement so the lender can see all expenses that are being paid at the closing. For example, the following should appear in the closing statements: commissions, rehabilitation and renovation escrows, builders allowance, wholesaler’s fees, and assignment fees. If the Title Insurance Company does not place an expense on the HUD or other closing documents, ask them to amend their closing statements. If they cannot do so and/or if the closing must proceed as scheduled, then make sure all parties to the transactions sign off and are advised of the changes. It goes without saying the mortgage company must be advised of the omissions by the Title Insurance Company. Please visit my websites at http://www.detroitinvestmenthomes.com , http://www.MegaEveningEvent.com and http://www.MrLeaseOption.com
Free Forms and Real Estate Information
Free Forms and Real Estate Information
Frequently Asked Questions on Short Sales and Pre-foreclosures
The leading short sale and pre-foreclosure expert Nation wide is Jeff Kaller. His students have really done well in our Michigan Market. If they do well in Michigan depress real estate market you know Jeff Kaller is doing a great job of teaching the short sale business. This is one of his articles for your reading. You can find great value from his workshops and his free reports and CD’s:
Check out his workshops- Jeff is doing them all over the country http://www.JeffsWorkshop.com (LA in January)
"Frequently Asked Questions"
By: Jeff Kaller Republished by: Ralph Marcus Maupin,
Here are 10 frequently asked short sale questions that are very helpful especially if you are just getting started or considering short sales as a means to acquiring pre-foreclosures.
1. What happens to the seller's credit rating when they allow an investor to short sell their property?The way it show on the credit report is that the loan is "paid" or “settled”; however there will be a notation that says "settled for less than originally owed" or something along these lines. Be careful how you state this. Each lender and reporting agency will say it a little different and the credit will still be affected even if a short sale is accepted, approved, and closed because of all the previous late payments. 2. Where do you find buyers for short sales?Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are interested in purchasing a deal you have. Another good place is your local real estate investors club meeting (REIA). My favorite way to find buyers is using the MLS (multiples listing service). I like flat fee companies because it cuts down on commissions. 3. Define a short sale?A short sale is a workout plan that the banks have in place to help homeowners and themselves prevent foreclosures. When the mortgage company agrees to accept less than the loan amount to them to avoid foreclosure process. A negotiated short sale results in a discounted purchase price for the buyer/investor. The buyer would finance the acquisition much the same as in any other conventional acquisition or the investors can use some creative strategies.4. Can an owner profit from a short sale?The seller cannot profit (monetarily) from a pre-foreclosure short sale in most cases. FHA programs will give an incentive fee of $500-$1,000 to the mortgagor to participate in the pre-foreclosure sale program. The incentive fee can also be used to payoff a second mortgage.5. Can you do a short sale is the homeowner is in bankruptcy?Mortgage company’s will not approve a short sale if the homeowner is in bankruptcy...why? Because approving a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy. But you can still get the process started and be ready to work the short sale as soon as the house is released from bankruptcy. (Ask the bankruptcy trustee and the mortgage how to proceed in this situation) 6. What documents do I have need to include in the short sale package?Documents depend on the lender. Each lender has different requirements. It is typical to require authorization to release information, hardship letter, financial statement, purchase and sales contract, settlement statement (HUD 1), pay stubs, bank statements and tax returns. Additional documents are needed on FHA loans. Remember the banks may ask for more so be prepared.
7. Do mortgage companies always send someone out to do an appraisal / brokers price opinion on a possible short sale?All lenders require a BPO or full appraisal of the property before making their final decision to accept or reject the short sale offer. This is there only way of assessing the value of the property and making a good decision on the banks end.8. How late in the pre-foreclosure process can you start a short sale?Each state will be different. It is really up to the lender. Try to allow a window of at least 30 days for the mortgage company to approve the short sale offer.9. What is a Due on Sale clause?"Due on Sale" Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender's security instrument upon a sale of all or any part of the real property securing the loan without the lender's prior written consent. Contact your local real estate attorney for more details in your state. 10. Will banks allow a short sale when the owner has some equity?Yes and No. No, If a property has what the “lender would consider” a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Yes, if you can affect the BPO/appraisal to come in lower than the market value. Your job will be to create the equity in the home by negotiating a successful short sale and affecting the banks value on the home.
Check out his workshops- Jeff is doing them all over the country http://www.JeffsWorkshop.com (LA in January)
"Frequently Asked Questions"
By: Jeff Kaller Republished by: Ralph Marcus Maupin,
Here are 10 frequently asked short sale questions that are very helpful especially if you are just getting started or considering short sales as a means to acquiring pre-foreclosures.
1. What happens to the seller's credit rating when they allow an investor to short sell their property?The way it show on the credit report is that the loan is "paid" or “settled”; however there will be a notation that says "settled for less than originally owed" or something along these lines. Be careful how you state this. Each lender and reporting agency will say it a little different and the credit will still be affected even if a short sale is accepted, approved, and closed because of all the previous late payments. 2. Where do you find buyers for short sales?Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are interested in purchasing a deal you have. Another good place is your local real estate investors club meeting (REIA). My favorite way to find buyers is using the MLS (multiples listing service). I like flat fee companies because it cuts down on commissions. 3. Define a short sale?A short sale is a workout plan that the banks have in place to help homeowners and themselves prevent foreclosures. When the mortgage company agrees to accept less than the loan amount to them to avoid foreclosure process. A negotiated short sale results in a discounted purchase price for the buyer/investor. The buyer would finance the acquisition much the same as in any other conventional acquisition or the investors can use some creative strategies.4. Can an owner profit from a short sale?The seller cannot profit (monetarily) from a pre-foreclosure short sale in most cases. FHA programs will give an incentive fee of $500-$1,000 to the mortgagor to participate in the pre-foreclosure sale program. The incentive fee can also be used to payoff a second mortgage.5. Can you do a short sale is the homeowner is in bankruptcy?Mortgage company’s will not approve a short sale if the homeowner is in bankruptcy...why? Because approving a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy. But you can still get the process started and be ready to work the short sale as soon as the house is released from bankruptcy. (Ask the bankruptcy trustee and the mortgage how to proceed in this situation) 6. What documents do I have need to include in the short sale package?Documents depend on the lender. Each lender has different requirements. It is typical to require authorization to release information, hardship letter, financial statement, purchase and sales contract, settlement statement (HUD 1), pay stubs, bank statements and tax returns. Additional documents are needed on FHA loans. Remember the banks may ask for more so be prepared.
7. Do mortgage companies always send someone out to do an appraisal / brokers price opinion on a possible short sale?All lenders require a BPO or full appraisal of the property before making their final decision to accept or reject the short sale offer. This is there only way of assessing the value of the property and making a good decision on the banks end.8. How late in the pre-foreclosure process can you start a short sale?Each state will be different. It is really up to the lender. Try to allow a window of at least 30 days for the mortgage company to approve the short sale offer.9. What is a Due on Sale clause?"Due on Sale" Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender's security instrument upon a sale of all or any part of the real property securing the loan without the lender's prior written consent. Contact your local real estate attorney for more details in your state. 10. Will banks allow a short sale when the owner has some equity?Yes and No. No, If a property has what the “lender would consider” a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Yes, if you can affect the BPO/appraisal to come in lower than the market value. Your job will be to create the equity in the home by negotiating a successful short sale and affecting the banks value on the home.
Welcome to the REIA of Wayne, Oakland, & Macomb Counties, Michigan
National Real Estate Network, LLC.
Southeast Michigan's # 1 RealEstate Investing Club and Property Network Groupthe Real Estate Investors Association of Michigan is theexclusive real estate investor's club in Wayne County, Michigan.
The REIA of Wayne, Oakland & Macomb is the exclusive real estate investing and network club in Southeast Michigan. Our mission is to provide an inspirational environment for real estate investors, realtors, real agents, mortgage professionals, and contractors to learn, teach, and network with each other in entrepreneurial atmosphere. The Real Estate Investors Association of Wayne, Oakland, & Macomb has been formed for real estate entrepreneurs and professionals by experience real estate entrepreneurs in Michigan, with one goal: to bring like minded individual investors together, in order to achieve greater real estate goals. Our organization is open to any and all interested in the world of real estate investing in Michigan. With members ranging from licensed agents and mortgage brokers to commercial investors and first time landlords, we have no doubt that as long as the interest and drive to succeed is there, the REIA of Macomb can help you surpass even your own expectations.
FREE MEETING FOR FIRST TIME VISTORS –Bring lots of business cards and fliers
Our meetings occur the Third Thursday of each month at Laurel Manor Banquet Hall, 39000 Schoolcraft, and Livonia, Michigan 48152
Networking from 6:00 pm to 7:00 pm
Local Investing news 7:00 pm
Main Speaker at 7:30 pm
Membership Benefits
• Opportunity to Network with like minded and Action Oriented Investors • Team Building – Build your Team to achieve success in your Business • Free Ticket to 12 Monthly Mega Evening Meeting ($240 Value)• Monthly Members only Educational Mini-Seminars (Priceless) Assisted Living Facility ¾ Housing Training Setting Up a LLC and it's Importance Asset Protection and Estate Planning How to read HUD-1 Settlement Statements Title Insurance and it's Importance Eviction Process and Paperwork • Gain invaluable Knowledge from National and Local Real Estate Experts in every niche• Discounted Tickets for Saturday Mega Workshop ($240 Value) • Market your properties or services at the event (Have/Wants) • Member's eNewsletter —Keeps you updated on Club events and information • Rental Property Management Forms Disk —Essential to Business (Priceless!) • Access to Asset manger's List of properties — Discounted Properties (Priceless'!)
More Membership Benefits:
•Easy, customizable, affordable health insurance through La Frey Associates and Integrated Health Benefits.•20% off on your Quick Books purchases.•Discounts on car insurance through Nationwide on behalf of Norris and Associates. •Deep discounts through Sherwin Williams on paint, accessories and supplies. •Discounts from DHL up to 25% on priority and overnight shipping. •Discounts up to 65% from Office Max office supplies, copier paper, computer/technology products, and furniture and print services. •Discounts on car rentals through Avis. •HD Supply preferred buyer program guarantees the lowest published discounted price regardless of quantity ordered and entitles buyers to same day shipping. •Smart Moves/Apartment Moves planners provide coupons for truck rentals and more, which help soothe the transition of relocation. •Member pricing when you order reports through Trak-1 Technology. •It's your money. Get it back with CybrCollect's FREE check collection service. •Discounts on Cell Phone service from Saba Wireless. •$250 off an investment property purchase from Prosper Real Estate. Annual Membership investment is ONLY $150
Become Member! Join Now
Monthly Membership Meetings These meeting are core of National Real Estate Network (NREN). Every month you have the opportunity to attend a workshop, network with your fellow Investors and our Business Associates and hear a guest speaker. There is ample time set aside for networking. Many of our Business Associates elect to participate in a "trade show" like forum and host a table. This makes it easy for you to identify the business and experts you need to discuss your issues with and craft a solution. The structured networking session concludes with founders providing an update with the club and acknowledging the resources in the room. The general session includes a guest speaker that is an expert in a specific area of real estate investing. There is no other organization in Michigan that brings individuals and organizations interested in investing in real estate together with the business community that supports them and this happens every month! Create your network and support group that will help make you successful! Education and Classes Increasing your knowledge and improving your skills will make you a more successful investor. We currently offer 10 classes and many workshops through our organization. Many additional courses will be added. VolunteerMembers have the opportunity to volunteer in specific areas of interest to a subset of the membership or the entire membership. Volunteer opportunities include helping at the monthly meeting or in the. Members earn credit for volunteering. Credit may be used towards discounts on education, seminars and other items. NewsletterThe National Real Estate Network newsletter is currently an E-zine and is generated on a monthly basis and contains tips on investing, topical articles from experts on subjects important to you updates on legislation affecting the real estate investor, and other important information.
Became Member! Join Now
Call 248-762-0800
http://MegaEveningEvent.com
The Club Is Sometimes Call; REIA, Real Estate Club Mi, Real Estate Investors Association, Real Estate Investing Association Mi, Real Estate Investing Michigan, Real Estate Investing Macomb Mi, Real Estate Investor Mi, Mi Real Estate Club, Real Estate Foreclosure Club, Real Estate Foreclosure Club Mi, Real Estate Entrepreneurs in Michigan
Southeast Michigan's # 1 RealEstate Investing Club and Property Network Groupthe Real Estate Investors Association of Michigan is theexclusive real estate investor's club in Wayne County, Michigan.
The REIA of Wayne, Oakland & Macomb is the exclusive real estate investing and network club in Southeast Michigan. Our mission is to provide an inspirational environment for real estate investors, realtors, real agents, mortgage professionals, and contractors to learn, teach, and network with each other in entrepreneurial atmosphere. The Real Estate Investors Association of Wayne, Oakland, & Macomb has been formed for real estate entrepreneurs and professionals by experience real estate entrepreneurs in Michigan, with one goal: to bring like minded individual investors together, in order to achieve greater real estate goals. Our organization is open to any and all interested in the world of real estate investing in Michigan. With members ranging from licensed agents and mortgage brokers to commercial investors and first time landlords, we have no doubt that as long as the interest and drive to succeed is there, the REIA of Macomb can help you surpass even your own expectations.
FREE MEETING FOR FIRST TIME VISTORS –Bring lots of business cards and fliers
Our meetings occur the Third Thursday of each month at Laurel Manor Banquet Hall, 39000 Schoolcraft, and Livonia, Michigan 48152
Networking from 6:00 pm to 7:00 pm
Local Investing news 7:00 pm
Main Speaker at 7:30 pm
Membership Benefits
• Opportunity to Network with like minded and Action Oriented Investors • Team Building – Build your Team to achieve success in your Business • Free Ticket to 12 Monthly Mega Evening Meeting ($240 Value)• Monthly Members only Educational Mini-Seminars (Priceless) Assisted Living Facility ¾ Housing Training Setting Up a LLC and it's Importance Asset Protection and Estate Planning How to read HUD-1 Settlement Statements Title Insurance and it's Importance Eviction Process and Paperwork • Gain invaluable Knowledge from National and Local Real Estate Experts in every niche• Discounted Tickets for Saturday Mega Workshop ($240 Value) • Market your properties or services at the event (Have/Wants) • Member's eNewsletter —Keeps you updated on Club events and information • Rental Property Management Forms Disk —Essential to Business (Priceless!) • Access to Asset manger's List of properties — Discounted Properties (Priceless'!)
More Membership Benefits:
•Easy, customizable, affordable health insurance through La Frey Associates and Integrated Health Benefits.•20% off on your Quick Books purchases.•Discounts on car insurance through Nationwide on behalf of Norris and Associates. •Deep discounts through Sherwin Williams on paint, accessories and supplies. •Discounts from DHL up to 25% on priority and overnight shipping. •Discounts up to 65% from Office Max office supplies, copier paper, computer/technology products, and furniture and print services. •Discounts on car rentals through Avis. •HD Supply preferred buyer program guarantees the lowest published discounted price regardless of quantity ordered and entitles buyers to same day shipping. •Smart Moves/Apartment Moves planners provide coupons for truck rentals and more, which help soothe the transition of relocation. •Member pricing when you order reports through Trak-1 Technology. •It's your money. Get it back with CybrCollect's FREE check collection service. •Discounts on Cell Phone service from Saba Wireless. •$250 off an investment property purchase from Prosper Real Estate. Annual Membership investment is ONLY $150
Become Member! Join Now
Monthly Membership Meetings These meeting are core of National Real Estate Network (NREN). Every month you have the opportunity to attend a workshop, network with your fellow Investors and our Business Associates and hear a guest speaker. There is ample time set aside for networking. Many of our Business Associates elect to participate in a "trade show" like forum and host a table. This makes it easy for you to identify the business and experts you need to discuss your issues with and craft a solution. The structured networking session concludes with founders providing an update with the club and acknowledging the resources in the room. The general session includes a guest speaker that is an expert in a specific area of real estate investing. There is no other organization in Michigan that brings individuals and organizations interested in investing in real estate together with the business community that supports them and this happens every month! Create your network and support group that will help make you successful! Education and Classes Increasing your knowledge and improving your skills will make you a more successful investor. We currently offer 10 classes and many workshops through our organization. Many additional courses will be added. VolunteerMembers have the opportunity to volunteer in specific areas of interest to a subset of the membership or the entire membership. Volunteer opportunities include helping at the monthly meeting or in the. Members earn credit for volunteering. Credit may be used towards discounts on education, seminars and other items. NewsletterThe National Real Estate Network newsletter is currently an E-zine and is generated on a monthly basis and contains tips on investing, topical articles from experts on subjects important to you updates on legislation affecting the real estate investor, and other important information.
Became Member! Join Now
Call 248-762-0800
http://MegaEveningEvent.com
The Club Is Sometimes Call; REIA, Real Estate Club Mi, Real Estate Investors Association, Real Estate Investing Association Mi, Real Estate Investing Michigan, Real Estate Investing Macomb Mi, Real Estate Investor Mi, Mi Real Estate Club, Real Estate Foreclosure Club, Real Estate Foreclosure Club Mi, Real Estate Entrepreneurs in Michigan
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