Posted by Sam Rosario on November 26, 2009 at 20:38:00:
confused: I have spent $17,000 on a short sales course,
and feel that it is confusing because the speaker explains
with a constant back and fourth from one story to another
and back again,I feel like I’m on a $17,000 wish ride. and
just yesterday I spent another $300 on another short sales
course that actually showed me some ways by step videos yet
between them both I still can’t see which documents gets
placed in what order. I still don’t know what documents get
stacked in what order to submit a correct and winning short
sale package to the bank. Neither course has showed me how
to get a proof of funds letter. I am just starting out and I
need to know; which do I need first?-- an accepting
investor? an M.L.S, or do I need an N.O.D. first? which is
the best way to go to become one of the elite investors such
as yourselves? without losing all of my money on courses–
money I could have used to purchase a home for myself! Have
any of you out there had to spend this much in learning
Posted by camgere on November 27, 2009 at 09:42:42:
This sounds like an internet hoax, but if it isn?t it is a sad situation. You touch on two points worth discussing that come up all the time.
Guru?s promise secret techniques that they will tell you for a lot of money.
The techniques are often very advanced and only suitable for very experienced investors. You can probably buy $20 books on Amazon.com that reveal the secret, anyway. Any real estate has booby traps: cracked slabs, mold, dying septic systems, fire and flood zones, hostile undisclosed ex-spouses on title, junior liens, mechanics liens, IRS liens, HOA liens, bankruptcies and former meth labs. Houses with these problems will commonly look like a real bargain. Problem house are often sold without disclosures (former owner is gone). Disclosures may have failed to disclose the one significant fact. Enforcing a contract involves $300/hour lawyers. How many hours do you want to buy with no guarantee that you will win? 50? 100? 200? Is the person you are suing judgment proof? Having a contract and enforcing it are two different things. Guru techniques don?t break the law, but step right up to the line and maybe even bend it a little. Good thing most people buying Guru courses already have bad credit scores. People should start out investing in a low risk way, until their skills support riskier techniques. Few amateurs would do well thrown into a professional sports event even if they feel they have great agility. Playing in the amateur fields would give them actual skills. Gurus include enough disclaimers to deny any responsibility (consult an attorney, CPA or investment advisor this is not legal, tax or investment advise). Disclaimers should give you very serious pause for concern. Frankly I would check with a local escrow or title company for forms before paying a bundle for them.
Guru techniques are marginally legal and have to be done with great expertise.
Everybody knows about Subject To and Due On Sale problems. Huge profits in short sales have a peril. If you just facilitate a short sale you might make a small commission. If you are not a licensed real estate agent, you have to do this very carefully in many states. To make a large profit you have to flip the short sale to an end buyer. A short sale is a hardship claim. It is NOT just asking for a discount. You represent that the current owner would like to pay the full amount, but it is impossible. S/he don?t have the income, the property can?t be sold because it isn?t worth enough. You are trying to head off a disaster. Then you immediately sell the property to an end buyer for a huge profit. But you just represented that the house had a low value. Hence the possible fraud. You can?t lie on mortgage applications or modifications. The argument that it was the bank?s duty to do an appraisal doesn?t mitigate your fraud, by my way of thinking.
Hopefully you will be the one out of a hundred newbies that pulls off a sophisticated technique perfectly for a big profit without breaking any laws or falling into any traps.
Posted by Sam Rosario on December 02, 2009 at 12:53:22:
live and learn / that’s what it’s all about ain’t it?
I have enough bumps and bruises. One can truly learn
with constructive criticism. It’s nice to be
important…But it’s also important to be nice. It
would be nicer if I could get some real good / nice
Well said camgere. I have been a real estate investor, buyer of trust deeds, lender and landlord for many years and I just shake my head when I hear the late night gurus tout how easy it is to make millions by just following their simple plan. Truth be known many of these experts have filed BK and have done very few , if any deals themselves.
Posted by Sam Rosario on December 06, 2009 at 21:00:05:
guess ur really telling me to quit while I’m ahead ?
that I should forget about and give up on Short Sales ?
Where would you be if you had quit ? where would you be
if I had given you the same information when you needed
something constructive ?