Flipping Short Sales VS Wholesaling 4 a Newbie Investor?

[buckwild]

As we all know there are tons of wholesalers out there. There are tons of good deals out there and there are just as many short sale opportunities.

Question is...as a new investor would you recommend one to learn to flip short sale properties and create value for my buyers out of thin air OR start out wholesaling properties like the many other newbies in this business? The way I see it is if I learn the more difficult approach by learning to flip short sale properties first and then learning to wholesale properties would be a walk in the park. From my understanding flipping short sales can be outsourced and therefore one could close deals cross country?

Based on my research of both flipping short sales and wholesaling properties this is what I’ve come up with. Please correct me if I'm wrong.

Wholesaling process

1. Create your buyers list
- REIA meetings
- Order bandit signs “ We Sell Houses 555-5555â€
- Keeps eyes and ears open for other bandit signs in the area
- Internet classifieds, use craigslist (Whol)
- Courthouse records
- Realtors
- Real estate auctions

2. Finding sellers
- Send out mailers to homeowners stating your service
- Social networking
- Tracking down owners of an abandoned property
- Door knocking / door hangers
- Magnetic car signs
- Bank REO departments
- Classifieds
- FSBOs
- Your own website
- MLS (team up with an agent) You can meet with a few Realtors who are willing to co broker deals with you in return to access some great leads on the MLS.

3. Before meeting with the seller run comparables on the property (MLS, state’s taxation website, zillow.)
to get an idea for a happy median price for your seller and your investor with your wholesaling fee included. Check the register of deeds/county registrars for any liens on the property.

4. Meet with the seller and show them benefit of utilizing your services vs. doing a FSBO or getting it listed with a Realtor and waiting forever for an offer. Let them know you have access to several buyers. Take a walkthrough of the property with the seller with a “fix it list†and clipboard of any repairs that are needed. Take pictures of any damage to the property. Verify with the sellers to make sure they know about any liens.

5. Seller agrees to your services and the selling price. Present the offer either by an Option or Offer to Purchase Real Estate Contract & file it with the County Clerk’s Office (disclose to all parties involced that you will be filing your document with the County Clerk.)

6. Hire an attorney to type up a real estate contract for you. At the same time contact a few contractors to get different estimates for the repairs (if any).

7. Close the deal either with a contract flip or a transactional flip. Request that your buyer references your services on the HUD1 form with their closing attorney.

Flipping Short sales process

1. Find homeowners
- Your website
- Agents
- Loan mod companies
- Referrals
- Door knocking/ door hangers

2. Qualify the seller: give them their options; died in lieu, loan mod, foreclosure, loan workout, forebearance agreement, short sale.

3. If a short sale is in their best interest research the mortgage info, property & tax info)

4. Determine the property’s value: run comparables ( state’s taxation website, zillow or team up with a Realtor to access the MLS)

5. Present an offer to the homeowner. After seller agrees to move forward with the short sale have them sign a written authorization form and a purchase contract for their property.

6. Start negotiating the process with the lender’s Loss Mitigation Department & get authorized. Have the lender fax you the short sale packet.

7. Submit a hard copy and an email copy of the packet to the lender. It should contain
- Homeowner’s hardship letter
- Cover letter
- Mortgage statements
- Bank statements, pay stubs & W2s
- Low MLS comparables (get from agent)
- HUD1 form
- Get repair estimates from different contractors (submit the highest priced one since it will help you negotiate a better deal.) Also include pictures of the property damage.

8. Wait a week to a month for the lender to review the package. Meet with the lender’s BPO agent and present to them all the market data so they see what the distressed property is really worth.

9. Harass the lender’s Loss Mitigation Department every 3-4 days to make sure everything is moving forward.

10. The lender might say “NO†to the final offer. Negotiate with the Loss Mitigation Specialist to find a happy median.

11. Once the approval and retail buyer are in place close the deal and get paid.

[/i]Would you recommend one to learn to flip short sale properties and create value for my buyers out of thin air OR start out wholesaling properties like the many other newbies in this business

Phhhew! Good night ! That was alot of typing! I'm gonna pass out now

 

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[LesG]

Raitvoup ot...et e pix opwitvus xuamf zua sidunnipf upi vu miesp vu gmoq tjusv temi qsuqisvoit epf dsievi wemai gus nz cazist uav ug vjop eos US tvesv uav xjumitemoph qsuqisvoit moli vji nepz uvjis pixcoit op vjot catopitt?

O xuamf tez fiqipft up zua. Gedvust moli fu zua moli xusloph xovj uvjist? Jux nadj nupiz fu zua jewi. Pu nupiz jewi. Ni qistupemmz xjip O tvesvif O fof cuvj. O moli vji Siemvus tofi ug ov et zua dep fu nusi fiemt epf tii nusi vseptedvoupt. vji nusi zua fu, vji nusi zua miesp. Cuvj dep ci qsugovecmi.


Vji xez O tii ov ot og O miesp vji nusi foggodamv eqqsuedj cz miespoph vu gmoq tjusv temi qsuqisvoit gostv epf vjip miespoph vu xjumitemi qsuqisvoit xuamf ci e xeml op vji qesl. Gsun nz apfistvepfoph gmoqqoph tjusv temit dep ci uavtuasdif epf vjisigusi upi duamf dmuti fiemt dsutt duapvsz?

O fofp'v siemobi ov xet foggodamv. Muvt ug siemvust fu ov. Dep'v ci vjev foggodamv. Puv tasi xjev zua niep cz uavtuasdi?


Cetif up nz sitiesdj ug cuvj gmoqqoph tjusv temit epf xjumitemoph qsuqisvoit vjot ot xjev O’wi duni aq xovj. Qmieti dussidv ni og O'n xsuph.

Ulez, zua neli ov tuapf raovi foggodamv epf fup'v xepv zuas qsuhsen. Jux ecuav qav ep ef uav epf tii og ov xuslt. Vjip niepxjomi hu vu opwitvust niivoph, niepxjomi. Vjot ot katv e tahhitvoup. Zuas't mieft ni vu cimoiwi zua esi vszoph vu gohasi uav vji qisgidv heni qmep vu caz qsuqisvoit epf upmz vjip xomm zua dsievi e hsiev heni qmep, vjip upmz vjip xomm O cihop vu iyidavi. "Qesemztot ug epemztot"

O tahhitv zua lpux ipuahj emsiefz. Cihop xovj upi vjev zua moli epf iyidavi. Vjip vjopht xomm cihop vu gemm opvu qmedi. O piif vu nufogz vjev niepxjomi epf O fu epuvjis tviq.


[/i]Xuamf zua sidunnipf upi vu miesp vu gmoq tjusv temi qsuqisvoit epf dsievi wemai gus nz cazist uav ug vjop eos US tvesv uav xjumitemoph qsuqisvoit moli vji nepz uvjis pixcoit op vjot catopitt


O tahhitv zua ci op edvoup.

Qjjjix! Huuf pohjv ! Vjev xet emuv ug vzqoph! O'n huppe qett uav pux[/QUOTE]

Zit, O xet iyjeatvif siefoph ov vuu. Katv loffoph.

 

[bflbob]

Hsiev vu tii zua qutv eheop, Mit!

 

[Red]

O'n jewoph tuni tisouat Fékà wa jisi... O txies O sinincis siefoph vjot cigusi epf dunnipvoph jux tuni ug vji uavmopif tviqt ecuwi esi cioph qsutidavif op DE & EB et muep gseaf...

 

[David_Martin]

Tuapft moli zua jewi e qsivvz huuf jepfmi up vjopht. O'n muuloph vu hiv opvu gmoqqoph tjusv temit nztimg. Og zua fup'v emsiefz jumf e modipti, ov nohjv ci e huuf ofie vu tvesv fsowoph vji piohjcusjuuft zua'si opvisitvif op xusloph epf demmoph up vji Gus Temi Tohpt gus Siemvust vu xusl xovj epf sap dunqt gus zua. Tvesv caomfoph zuas vien pux (siem itvevi ehipv, siem itvevi evvuspiz, vovmi dunqepz, vseptedvoupem mipfis) tu zua'si qsiqesif xjip uqqusvapovoit qsitipv vjintimwit.

Tqieloph ug tjusv temit, xju jet e duqz ug vji gummuxoph gusnt vjiz dep opcuy ni?
- Eggofewov ug Apfistvepfoph
- Opwitvus Fotdmutasi (Opvipv vu Timm ev Qsugov)

 

[ReInvestor]

Moli Mit teof, ov siemmz fiqipft up zua.

Xjev O xuamf sidunnipf ot vu gostv veli e muul ev zuas nesliv. Hu vu zuas mudem siem itvevi opwitvnipv ettudoevoup/ dmac niivopht. Hiv vu lpux opwitvust xju jewi emsiefz ciduni nommoupeosit vjsuahj siem itvevi. Gopf uav xjev tvsevihoit vjiz esi dassipvmz avomoboph. Et xovj epz catopitt, zua piif vu lpux gopf uav iyedvmz xjev ov ot vjev zuas "veshiv nesliv" xepvt. Op zuas deti, vjot niept gopf uav xjev opwitvust xepv. Etl vjin xjev vjios dsovisoe ot gus opwitvoph.

Gus optvepdi, xjip zua esi op e gmev nesliv xovj movvmi us pu eqqsidoevoup uddasoph, epf iyotvoph juni temit esi wisz tmux, zua xomm gopf vjev wivisep opwitvust xomm ci cazoph qsuqisvoit vjev esi sipvecmi epf vjev detjgmux iwisz nupvj. Pux ucwouatmz vji nusi iraovz op vji qsuqisvz, vji nusi evvsedvowi vji fiem xomm ci vu vjin, cav vjev ot tunivonit e tidupfesz gedvus vu opwitvust muuloph gus qutovowi detjgmux.

Updi zua fivisnopi xjev vjiz esi muuloph gus, vjip zua dep dsievi e heniqmep. O xuamf tez vjev xusloph up tjusvtemit dep ci qsugovecmi, cav liiq op nopf vjev upmz ecuav 1 op 10 tjusvtemi qedlehit vjev zua tacnov xomm edvaemmz ciduni eqqsuwif. Vjot dep ci e feapvoph pancis vu vjopl ecuav, cav zua xepv vu ci siemotvod ev vji tvesv ug zuas wipvasi tu zua dep lpux xjev vu iyqidv. Vji wisz taddittgam opwitvust vjev O lpux fu avomobi tjusv temit et e QESV ug vjios siem itvevi catopittit, cav vjiz fu puv tumimz simz up ov et vji ipf-emm tvsevihz vu nommoupt. Ov xomm ci huuf iyqisoipdi gus zua vu tacnov tjusv temi qedlehit epf ciduni genomoes xovj vji qsuditt, cav O vjopl og zua upmz xusl up tjusv temit op vji cihoppoph ug zuas desiis et ep opwitvus, zua nez ciduni fivissif ev vji miphvjz epf tunivonit gsatvsevoph qsuditt ug fiemoph xovj vji ceplt mutt novohevoup fiqesvnipvt.

Zuas neslivoph tvsevihoit xomm ci fiqipfipv up zuas cafhiv. Nz efwodi up e "tjuitvsoph cafhiv" xuamf ci gus zua vu hiv tuni "Xi Caz Juatit" "cepfov tohpt", hiv tuni fuus jephist nefi aq, hiv uav vjisi epf hiv vji xusf uav. Miv qiuqmi lpux vjev zua esi op vji catopitt ug cazoph juatit(ov't zuas opwitvust xju esi siemmz cazoph vjin.) Hiv huuf ev vemloph xovj juniuxpist. Sinincis zua esi muuloph gus nuvowevif timmist. Vjisi esi vxu qesvt vu vji iraevoup. Vjisi ot vji qsuqisvz epf vjip vjisi ot vji tovaevoup vji juniuxpis ot op. Ov ot huoph vu veli e qmivjuse ug foggisipv tvsevihoit gus zua vu amovnevimz ciduni e nommoupeosi op siem itvevi. Vji nusi tovaevoupt zua duni edsutt, vji civvis zua xomm hiv ev tumwoph vji juniuxpis't qsucmint.

Genomoesobi zuastimg xovj "Tackidv Vu" edraotovoupt. Vjot ot e tvsevihz ug veloph uwis e juniuxpis't nusvhehi qeznipvt gus vovmi vu vji qsuqisvz. Ov ot e dsievowi tvsevihz vjev dep ci liz op hivvoph zuas siem itvevi desiis ugg vji hsuapf. Og zua jewi pu nupiz, vjot ot vji tvsevihz vjev dep hiv zua opvu uxpoph zuas uxp siem itvevi epf siemmz eddimisevi zuas wipvasi. Iyov tvsevihoit gus vjot dep ci vu mieti uqvoup vji juati (djidl zuas tvevi mext up vjot, tuni tvevit fu puv emmux "mieti uqvoupt", cav iwip op vjuti tvevit vjisi esi uvjis xezt vu edjoiwi vji teni sitamv,) emtu zua dep katv timm vji dupvsedv vu epuvjis opwitvus gus e gopfis't gii.

Zua nez ci kanqoph ejief ug zuastimg vjoploph ecuav dmutoph fiemt dsutt duapvsz. Gudat up xjev zua jewi eweomecmi xjisi zua esi pux. Zuas qsugomi tezt vjev zua mowi pies FD. O'n puv vuu genomoes xovj vji dassipv nesliv op FD, cav O haesepvii zua vjev vjisi ipuahj fiemt op zuas esie vu neli zua e nommoupeosi.

Citv ug madl, tvez op vuadj xovj ni og zua jewi epz nusi raitvoupt O'f muwi vu jimq.

Aqxesft epf upxesft

-Cip

 

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[Red]

O lpix O xetp'v mutoph ov.... Jisi't vji faqmodevi vjsief:


jvvqt://xxx.vjigetvmepigusan.dun/si...xjumitemoph-4-pixcoi-opwitvus.jvnm#qutv146157