Dakota Short Sale Quick Turn Deal | Torrey Brothers Dot Me

Short Sale Quick Turn Deal

Posted on September 09, 2009 by Torrey

I’m currently working on a short sale that is scheduled to close later this week. I acquired the lead by marketing to absentee owners in the Greensboro area. This seller owns several properties in Greensboro and Charlotte, NC. Even though the seller wasn’t interested in selling the Greensboro property, she did mention that the two Charlotte properties are both vacant and that she is interested in off loading them.

Bingo! On the first property, I performed a short sale on it since the owner was behind on the payments. My exit strategy was to submit a low ball offer to the bank and try and get it as close to this price as possible. I offered $25,000 for the short sale and the loan balance was $65,000. That’s 38 % of the balance. Crazy enough, the banks accepted without even offering a counter offer. It doesn’t get better then this. I even had the bank pay the listing agent a full 6% commission with no problems!

Once I got word from the bank that they were accepting my offer, I had the property listed with me as the seller, on the MLS. The original list price when the seller listed it was $50,000. When I listed the property, my initial list price was $38,000. That surely attracted some interest. Within the first week, we had 8 showings at the property. Within 3 weeks, we had several offers come in. The property doesn’t qualify for financing due to the nature of the repairs needed. So I accepted the highest offer of $31,000 with end buyer paying all of the closing cost.

At closing this week, I stand to net $5,500. Not bad for about 4 hrs worth of work. I learned from this deal that title work on any deal you are working on needs to be done immediately. This way you won’t be surprised in case something pops up. Also I encountered some problems with my closing agent. My paralegal had initially told me that she could close on this simultaneous closing. But once I emailed her the docs, the owner of the firm called me himself and said that they were unable to complete the transaction. Are you kidding me? So I had to scramble around town looking for an attorney that would get this deal closed for me.

Luckily I found a well educated attorney who knows the law and isn’t afraid of main stream media. I sent him over the paperwork and this week, we will have this one in the bag. My plans after closing are to take my funds and put 80% of it right back into my business. I’ll spend 60% of my marketing budget finding buyers and the remaining 40% finding sellers. In this market you can throw a rock in any direction and hit 20 sellers. The buyers are the key factors here. Find and secure your buyers, and you’re Golden…

Deal Recap:

I have $0 cash invested in this deal
I have approx. 4 hrs of time invested
I don’t have to pay any closing cost out of my pocket
My agent did majority of the marketing for a buyer
Seller has already referred me to an additional deal with equal or more profit
I’ve established a relationship with a great real estate attorney in the Charlotte area
My profit margin is approximately $5,500+ on this one deal
Total time from start to finish, 45 days

Happy Investing!

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