Re: The 10’ High Jump… - Posted by JPiper
Posted by JPiper on November 18, 2000 at 05:59:16:
Just a couple of calls huh? I really doubt this is the case. Funny how a couple of calls here and a couple of calls there and pretty soon you need a headset.
For example, why not start with lining up that nonseasoned refi? Granted Scott said he could get financing if he thought it was the right deal. But what he didn?t say was that he could get 0 down non-owner occupant financing?.or alternatively, nonseasoned refinance money. So how many calls do we make looking for this money? One? Or do we ?assume? the money is out there and make a bunch of calls? What about the local banker? You just going to call him? Or are you going to assume that this non-seasoned refi is something a little off the wall?.therefore requiring an appointment to explain the merits of your deal? Now you?re making a call to get an appointment, preparing for the appointment (I assume you would agree with preparation), attending the appointment, and later following up the appointment with more calls.
One call to that first mortgage lender? Don?t know about you but I usually end up playing the voice mail game?.following which the guy I reach is not the guy I need to talk to. But then, you?re just going to ?ask? if he?ll discount $10-$12K? This guy already has a feel for the market value of the property (if he?s the right guy). He knows the market is good. And he knows his position is a comfortable LTV. Unless you have a case to make (which I assume you do)?.what?s the result here? I generally try to make a logical case for discounting. That may take something more than a simple phone call. It may take pictures, something in writing, etc. Same thing applies to the second mortgage holder.
Now we?re not just talking about a couple of phone calls anymore?.now we?re talking about preparation, making a case, numerous calls, callbacks, etc etc. Time. Don?t get me wrong?I not against making an effort to do a deal. I would just like to have a belief system that I?m on the right side of things?..here I don?t see that.
What?s more, I could make ?a couple of calls? on several situations EVERY day just like this one. MOST of the foreclosures are encumbered in ways that IF those pesky lenders would just discount sufficiently then a deal would be possible. And IF you could do non-seasoned refi?s financing these numerous deals would never be an issue.
Rather, I think working deals like this one are low probability deals. I think you could chew your time up trying to do these on any kind of a consistent basis.
Now change a few things in the mix here and my opinion changes. For example, tell me this house is in trouble?it needs various repair such that you?ve eliminated the retail market. NOW I get a little more interested. Tell me you have access to cash to take this deal down?.that you?re not goofing around with a non-seasoned refi. Now tell me that first mortgage is a little smaller, and the second mortgage is a little bigger?.now I might start to get excited.
Until then, I have better prospective deals to work on. I think it becomes a case of priorities. I suppose if you have nothing else to do, it doesn?t hurt to give this a shot?.might learn a few things. On the other hand, if you have plenty of things to do then why spend time on a low probability shot?
JPiper