and i do not meant Planet B--

just in case i am right and BPOS start to dip--reos do not flood the market and Short Sales are the order of the day--
here is a plan..
i kind of thought of this before and i have kind of worked this model before--but today I found a guy who seems to have a way to make money in this market--
now at first i thought it was a little unethical--then i thought it was quite brilliant-if he was doing it the way i thought he was--he was not exactly--never the less--it is still hard work!
so what is it?
here it my version of how to use the market to work short sales-and get all of the pie!
1. find buyers and get them prequalified--if you are good--get some investors in your pocket (that is what i used to do)you can post free adds online to find buyers
2. use your mls or tax office webpage and find preforeclosures--these are people who are dying on the vine.
3. get to knocking on door--you do not even have to list them! everyone wins--the owner has nothing to lose
(this is kind of like that old investor game with the 'lease option' scam-but this will actually work for your owner, buyer and you)
you have your buyer/investors,people need to get out of their home--so,get your short sale cap on and get to work--
you have a qualified buyer and home that is ready to go into foreclosure and a bank who is most likely willing to sell cheap!

now this is not easy--but once you have 5-10 in the pipe line(buyer's and homes)--you can be closing deals every month with 5-7% commission..

i should be selling this stuff huh?
good luck

This isn't new and has mostly been short-circuited by the 90 day rule unless your investor is owner financing to the buyer.

So, your big plan is to find buyers who want to buy and sellers who need to sell and broker a deal between them with an investor making the initial purchase?!? Holy batwings, Batman! Where do I write this stuff down...?

First off, the investor is not needed. Unless, that is, you are intending to take a little money out of the equity there which, of course, you would properly disclose to everyone involved in the transaction. If you are only intending on getting a commission, why even bring an investor into the picture? All an investor does is leach onto the property and bleed money out of it.

Secondly, the sellers don't need to sell. If they are that close to foreclosure, all of the damage is already done. Snake-oil salesmen who prey on unsuspecting owners by using fear as their biggest weapon need to get out of our business.

Thirdly, what says a bank will approve the short sale anyways? Nothing. The owner probably is dealing with a servicer who makes absolutely NO MONEY on a short sale. A servicer has very minimal incentive to allow a short sale to go through.

Other than that, great idea. I don't think that would have crossed anybody's mind at all---putting buyers and sellers together. Man.....just brilliant.

northtxbroker, you gave me a good laugh!!

a couple of things---
1. yes this is not a new way to do real estate –there have been programs like this around for years—just like bpos have been around for years and still realtors ask, "what is a bpo'? so sometimes info/posts are for those who may not have done real estate like this..or may now have thought of doing things this way—I know I do not have all the answers---

now for the more cynic posts..
1. i have deal with investors for years—they can buy and sell a lot of properties--
2. investors have cash--banks like cash—deals close fast with cash--just like a lot of REO agents are selling homes under the radar--TO INVESTORS..
3. there is nothing to say the bank will sale short sales--but with that attitude--nobody would do short sales--heck--nobody would do real estate or sell anything –there is no reason anyone would sell anything ---I have seen people back out of deal all of the time-
4. if someone is in preforeclosure---they could have months left to negotiate and may actually currently be in negotiations for a loan mod--which they may not be able to handle anyway..

so yes it is A WAY to put buyers and sellers together--
here is the difference--
GOOD BUYERS--WITH CASH--TO BUY HOMES CHEAP--FROM BANKS WHO WANT OUT AND YOU GET 4-6% COMMISSION..
i am glad Pheo got a big laugh out of it--i bet the last 2 posters are really raking it in--
hey i have an idea--
WHAT DO YOU SUGGEST IF BPOS AND REOS DO NOT PUT PIG ON THE PLATE LATER THIS YEAR? HUH?
ya---i cannot wait to see what their 'great' ideas will be!
it is easy to be a part of the NO crowd---dealt with them all of my life—some of us just prefer to say HOW!

So yes this does work because people are doing it—
No it is not easy—
No it is not full proof—nothing is--
But if reos and bpos go soft—and a person is not afraid to knock on doors—this is a way to realistically make an extra $50-60k of income..
Or you can walk around your neighborhood and do some farming---see how that works for you!
peace!

Well, MY plan B is to sell merchandise for Beta Pi Omega.

That and I am part owner of a paint striping machine. 1 of 2 in the area. When those parking lots start to fade, the business will flow. At .83 cents per linear foot, I am sitting pretty. Just have to make sureI have enough blue paint for the handicapped spots. Yes, I do have a wheelchair stencil.

If you ever really want any of us on this forum to take you seriously you've got to find a way to make your posts appear as if they weren't typed by a 6-year old. Spell/grammar check usually can help.
Also, try some new ideas, because these certainly are not original and to imply that they are new insults the intelligence of every agent/broker in this forum. Try using that MBA from Internet University to get some creative business thoughts.

lol... I think I'll give my little brothers get rich quick scheme more credit. His was at least creative.

Move to Africa, trade canned goods shipped from my parents in the states for handmade items which he would COD back to my parents for them to sell on Ebay for 3 times the cost of the can of corn + shipping costs of course.

J~

Northtx- LOL

J- Now that's a plan!

If you're an agent and you don't know to put a buyer and seller together in order to broker a deal, you're in the wrong business. BPO/REO is a specialized niche and I wouldn't expect everybody in real estate to know about it. Just like attorneys, doctors, accountants, etc. all specialize in their fields, so do realtors.


And your point is.......? My question to you was why, if you already have an end buyer and you've located a seller, do you even need the investor? You don't--plain and simple. Unless, of course, you are making a little "referral fee" from that investor's cut of the pie...


Banks have cash....banks need to loan cash to qualified buyers....having an owner occupied loan behind a purchase gives legitimacy to the transaction....by the way, I've yet to see a bank reduce their price significantly for a cash deal. Maybe $5K, but that's about all an investor's cash is worth. All an investor is guaranteed to bring is a big head-ache.


No, you don't understand short sales vs. foreclosures then. It's all about making and recouping money. Servicers have contracts to make money on foreclosures--they typically don't on short sales. So, where is their incentive to approve a short sale? Just because they like you and your greedy investor buddy? right...


Ok....so, where is their motivation to sell to you? Just to not deal with the hassle? Wake up---most of these owners want to stay in their property so months of negotiation plus 3-4 months (minimum) for an eviction are good news to them. It's free rent.


yeah, laughing at you...


Sorry, my bpo/reo business doubled last year and I've added some very large new clients at the beginning of this year. About 3 of them actually already. The only people who think that this reo crisis is over is the Obama administration and you. Everybody in the industry sees the writing on the wall. I thought somebody who "slapped down 15-20 Gs a month" with reo/bpo money would know that.


Of course it works---it's called real estate. You are seriously inept. Or, maybe the whiskey got your one last good brain cell. I don't know. But, getting on a real estate website full of experienced agents saying that the next best thing in real estate is to put buyers and sellers together in order to sell properties is nothing short of retarded. All while proclaiming that you're raking in the "dough", the "big ones", the "pig on the plate". Seriously, what kind of self-respecting person talks like that? You want to be taken seriously and given respect on this site? Stop sounding like a 2 am Carlton Sh*ts infomercial.

peace!! moron.

If bPojOes's plan be works out, my plan A will stay intact. All those deals he'll be working will create a huge flood of bpos. This is good news. I can keep the paint machine in moth balls.

Very nice post NTB. However it’s hard to "reason" with someone who is constantly obnoxious and never really contributes any positive vibe to the MB. I just view his as an attention starved troll.

that's very true.

On the Africa thing I know someone who does something similar.

They go to all the biog store sales in GA and buy brand name shoes etc. at 70 percent off and then they have a contact in China where they double their money and that person re-selling in China can still sell it cheaper to their customers than if they bought through regular distribution channels.

They aren't millionaires or anything but she loves shopping and makes a good living at it. I guess there are a zillion ways to make money but I will stick to OLD FAITHFULL real estate.

I was told once that the most expensive real estate is cemetery plots. Doesn't require a RE license, financing isn't an issue as you deffinatly will be paid. No worries about people not wanting to buy due to economy. I don't know there is ever a decline in demand but there is deffinatly times where there is an increase. And I think the timing could be just right for this move as the baby boomers age is coming to a close. Course I don't know you can ethically resale a plot but I'm sure people out there try.

Maybe that should be my Plan B instead of going the Africa route or the purchase of a city block in Detroit for leased parking places.

J~