What techniques can be used to circumvent short sale assignment problems?
I am brand new to short sales/pre-foreclosure investing and have NO experience. I posted to several real estate discussion boards that I am looking for a mentor to help me. Some investors who replied offered short sale education to me at a price I could not afford.
One gentleman said he ordinarily charges, but he would work with me. He proposed that if all I do is find motivated sellers in foreclosure who are behind in payments and who:
1 – just want to get out of their situation
2 – do not expect any money out of the deal
3 – are willing to let him handle the situation with their lenders and stop the foreclosure process
4 – are willing to sign an offer to purchase and other paperwork
He will take care of everything to close the deal. He has years of experience and knows the ins and outs of short sales…how to deal with lenders, loss mitigation dept, etc. His LLC has all the key ingredients already in place to close a short deal transaction quickly:
- Attorneys on Call
– Title Agent
– Lenders, Private and Hard Cash
– Mortgage Brokers
– Repair Contractors
– Inspectors and Appraisers
The only thing I will be doing is bringing motivated sellers to this investor. If the deal closes, he has agreed to sign a promissory note assuring me that I will get paid $2,000 or 10% of profits (since he will only consider deals with $20k or more profit). He has also agreed to teach me the short sale process, the paperwork involved, etc so I can learn to do this on my own. I felt this was a good way to learn a process that can be expensive to get if I had to pay for seminars, bootcamps, etc. I have decided to work this way…for now.
I have studied and understand how short sales work, but… If one has no good credit or source of private and hard cash and no short sale experience, what other alternative do they have where they could do the deal and keep all the profits themselves? And advice would be greatly appreciated. Thanks in advance.