You can’t avoid hearing about them on the television. You can’t avoid reading about them in the newspaper. You can’t avoid knowing someone who has been affected by them.
Shorts Sales are the Swine Flu of Real Estate
I officially like to say, “I don’t like short sales.
Read the email I recently received:
Are your clients still hanging in there?
It looks like we will have to resubmit the packet. Considering the developments, at this point I think we should be prepared that it could still be another 60-90 days.
We are doing everything in our power to condense that time frame but I need to know if your clients are in for the “long haul” at this point?
What Does Long Haul Mean?
Background first.
I primarily work with real estate investors who love their day jobs. They are not looking to replace their income, just supplement it, just give it a little boost, just pad their depleting stock portfolio a little with something tangible.
For one of my California real estate investor clients, I identified a great opportunity in Queen Creek, Arizona . A great first time real estate investor deal. A large two story home that has been rented for two years. I met the tenants and they wanted to stay put and pay market rents. The listing agent stated they had the short sale paper work already submitted to the bank and could close in less than 45 days. The price had dropped from $260K to $117K. After two other buyers couldn’t perform. I was able to knock off a couple more thousand dollars.
Immediate Day One Cash Flow for my clients.
But the IndyMac Bank changed the rules. My client said no problem let’s wait… the first time.
However, 60 days later we received news that the bank needs more of the same paper work. Not the listing agents fault. They have been very open in their communication.
Unfortunately, I have officially caught the Short Sale H1N1 Wait To Close For Months Virus. I’m sick and I had to tell my clients they may be infected too.
There’s only a few types of vaccinations;
- Chop off your investment arm and Quit.
- Find Other Real Estate Opportunities.
Forget waiting for the real estate version of the CDC called NAR, AAR, SEVRAR.
I’m creating my own cure. By building relationships with real estate wholesalers from across the United States. Connecting my real estate investor clients and those who have signed up on my email list, to real estate deals nationwide, not just here in Phoenix, Arizona.
Even in this economy there is still opportunity for the wise.
Moving Forward,
Kendall E. Matthews
www.InvestmentRealEstateCorner.com