I have purchased it and listen to it. Very informative. A lot of filler. The Ron LeGRand Jeff Kaller SS CD says in one or two CDs what they say in about 6.
Here is what someone posted to me. I'm not exactly sure who he is referring to, but take it for what it's worth:
"You're right; there are a number of "gurus" giving advice on short sales. And it's hard to find two gurus who agree with each other. You may be interested in this incident which occurrred a while back in my area of south Florida. There are two women who offer courses on buying pre-foreclosures and then asking ithe bank to short sale them. I was at a meeting given by the women and I said to one of them that I was concerned because no one seems to tell the distressed sellers that after the sale is final, the IRS will come after the seller demanding taxes for the amount "forgiven" by the lender, as if the seller benefitted from this discount.
This particular guru (and I'm not ridiculing her - she seems to have a lot of good information) said to me "No, I don't think the IRS does that". I said that that was what I had heard. She came back to me in about 15 minutes and said "I just spoke with someone and he said that IS what the IRS does."
All I could think about was "You teach these courses and you didn't know that."
lenders do not accept a discount just because it sounds good to you. If the lender thinks they will get a higher payoff by taking back the house the lender will turn you down. There are certain things you must do to make the lender understand that a preforeclosure SHORT SALE is his or her best option.
Once you know the secrets of what makes a preforeclosure SHORT SALE possible you have the key to startling profits. With the proper short sale package a lender may take a discount of between 50% and 80% of what's still owing on the mortgage loan.
Email me and I would be happy to send you some info to get you started in this area, just return the favor to another is all I ask!
SSP--
I've seen this covered here several times and my take was that if the seller in "upside down" in total expenses vs income that the IRS doesn't uphold the taxes. Additionally this is true if the seller has been in the house for 2+ yrs. Am I mistaken??
I saw them speak at the Orlando Conference. Dwan claimed to have done over 1000 deals in the past 10 years which I feel is absolutely not true!
She had some very good information and some information that I did not agree with. For example, she teaches not to get the deed until after you negotiate with the bank and have a committment from them to give you a discount. What happens when the tell you they will discount the note from $180k to $135k and you approach the seller for the deed?? Once they find this out you risk the chance of them backing out and having a relative or friend purchase the property at this discount and selling the house back to them. All your hard work down the drain.
If I am going to go thru all the hard work of doing a short sale and working with the bank, you can better believe I am going to get the deed. The key is not to record it.
Maybe TheShortSalePro can give some input on this...
The SSP also does not believe in "getting the deed".
I have gotten the deed and I have not gotten the deed in doing a SS.
I have also had people who signed the deed want their house back because a relative loaned them the money, they just changed their mine, or whatever. Bottom line is that if a homeowner raises a stink you will tear up the deed and give them their house back. Nobody wants to be on the evening news. So getting a deed is no guarantee.
You have to get a P&S for a SS, so when they sign that, they are signing a binding contract and agree to sell the house to you. So you can use the P&S in place of getting the deed to contractually obligate the homeowner. But then again, if they cry and moan you will tear up the paper work because they are the naive homeonwer and we are the slick investors.
I hear what you are saying, however I have found that sellers are more inclined to back out if you dont have the deed. This is just from my personal experience. You have to do what works for you...
I have Dwan and Sharon's course and have found it informative and helpful in my ability to negotiate successful short sales.
They teach that we should always ask the bank to 'waive any deficiency judgement against the homeowner' because to leave the homeowner with a judgement is not helping them at all. In fact, they say to make it a condition of the offer.
They also say that the bank may sometimes issue a 1099 to the homeowner for the difference in the amount they owed, and the shorted sales price. They suggest that this may not be a huge hardship on the homeowner, since presumably they will be in a lower tax bracket, due to the distressed financial situation they are in. (Personally, I would think paying some taxes would be preferable to having a foreclosure on my credit report.)
I never get the deed. When I'm working with a homeowner, I tell them upfront that I am going to try to get the bank to agree to as low a price as I can. They know I'm an investor and this is my business. I have them sign a few blank contracts, so I don't have to go back to them every time I change the offer amount while negotiating with the bank. They don't know until the closing what the bank has agreed to accept. And the bank has agreed to accept this amount from ME. Not just anyone can jump into my place and pay that amount--so I don't worry about them trying to get a friend or relative to buy it and rent bank to them. (If that were an option, they wouldn't have contacted me or be working with me). One KEY is that YOU HAVE TO HAVE THE HOMEOWNER UNDER CONTROL. Their cooperation is imperative to a successful short sale.
Jeff: It's possible to do 1,000 deals in 10 years... but it depends upon the capacity of participation.
As a 'facilitator' it's entirely possible to work with a dozen or so investors each month and help their transaction along.
Personally, in the 20+ years since my first short sale, I've been involved with 1,000s of shorts. Sometimes working on staff for the Mortgage Lender, sometimes working as a Consultant to Real Estate Investment Clubs, or for Brokers with an inventory of overpriced, unsold property, or individual homeowners who need to sell but owe more than their homes are worth.
Jim: "I've seen this covered here several times and my take was that if the seller in "upside down" in total expenses vs income that the IRS doesn't uphold the taxes. Additionally this is true if the seller has been in the house for 2+ yrs. Am I mistaken??"
The two year rule has to do with capital gains tax, and is unrelated to ordinary income tax.... Mortgagees who forgive debt will file an IRS form 1099 to reflect the amount of forgiven debt. The IRS gets a copy, and the Seller gets a copy...not at closing, but right around income tax time... In most situations, the Seller does not have an exposure to a tax liability.... but it depends and you should always recommend that the Seller consult with a CPA about the tax consequences of forgiven debt.
[addsig]
ShortSalePro: I totally agree with you it is possible to do 1000 deals a year depending on how you clasify it. What I am talking about is actually purchases. It is very rare for someone to actually buy/sell 100 deals a year. I know of a guy who has actually has done it, but for a single mother, I highly doubt it. But you are right, as a facilitator it is possible....
One of the primary conditions for the SS imposed by lender is the residence must be occupied by the present owner. By getting the Deed you are transferring the ownership and disqualify your candidate for the Short Sale.
You may argue that you just getting the Deed but not recording it. Well, in this case you have no control over the homeowner anyway.
A prerequisite to any Short Sale package is a signed contract between the purchasing entity / person and the present owner. This signed contract may be used as a recordable instrument (In some states) to cloud the title in an event the homeowner has changed his mind and you already have an approved Short Sale on your hands after 3 month of work.
One other alternative in this situation is to approach the original lender and ask them to convert an approved Short Sale into a Mortgage Note purchase of the same price. More often then not the mortgagee will agree to it because it’s much cleaner for then to facilitate this transaction.
Then, as a new lender, you are not obligated to honor a deal that the original Mortgage Owner has approved.
Either way, you are in control of the deal. The only disadvantage for the second approach is that you will need to pay cash for the Mortgage Note and be ready to close faster then in regular Short Sale transaction.
SSP--
Yep, I agree with you. Too I was thinking if someone has truly done 1000 short sales and never had anyone complain about having to pay the taxes then it must be true if the sellers are upside down. THanks for being so active on this site--Jim :-D
Quote:
On 2004-08-06 00:10, JeffreyAdam wrote:
I saw them speak at the Orlando Conference. Dwan claimed to have done over 1000 deals in the past 10 years which I feel is absolutely not true!
She had some very good information and some information that I did not agree with. For example, she teaches not to get the deed until after you negotiate with the bank and have a committment from them to give you a discount. What happens when the tell you they will discount the note from $180k to $135k and you approach the seller for the deed?? Once they find this out you risk the chance of them backing out and having a relative or friend purchase the property at this discount and selling the house back to them. All your hard work down the drain.
If I am going to go thru all the hard work of doing a short sale and working with the bank, you can better believe I am going to get the deed. The key is not to record it.
Maybe TheShortSalePro can give some input on this...
Best Riches,
Jeff Adam
Really Jeff!
Is it that hard to believe?
Let's see I have over 300 bird dogs throughout the central United States working on bringing SFRH to my investment companies. The volume of real estate I deal with would boggle the minds of many.
Don't limit your self by belief that something is not possible.
Jeff with real estate there is no limits, unless we limit our selves!
I have purchased it and listen to it. Very informative. A lot of filler. The Ron LeGRand Jeff Kaller SS CD says in one or two CDs what they say in about 6.
Brenda
Here is what someone posted to me. I'm not exactly sure who he is referring to, but take it for what it's worth:
"You're right; there are a number of "gurus" giving advice on short sales. And it's hard to find two gurus who agree with each other. You may be interested in this incident which occurrred a while back in my area of south Florida. There are two women who offer courses on buying pre-foreclosures and then asking ithe bank to short sale them. I was at a meeting given by the women and I said to one of them that I was concerned because no one seems to tell the distressed sellers that after the sale is final, the IRS will come after the seller demanding taxes for the amount "forgiven" by the lender, as if the seller benefitted from this discount.
This particular guru (and I'm not ridiculing her - she seems to have a lot of good information) said to me "No, I don't think the IRS does that". I said that that was what I had heard. She came back to me in about 15 minutes and said "I just spoke with someone and he said that IS what the IRS does."
All I could think about was "You teach these courses and you didn't know that."
lenders do not accept a discount just because it sounds good to you. If the lender thinks they will get a higher payoff by taking back the house the lender will turn you down. There are certain things you must do to make the lender understand that a preforeclosure SHORT SALE is his or her best option.
Once you know the secrets of what makes a preforeclosure SHORT SALE possible you have the key to startling profits. With the proper short sale package a lender may take a discount of between 50% and 80% of what's still owing on the mortgage loan.
Email me and I would be happy to send you some info to get you started in this area, just return the favor to another is all I ask!
SSP--
I've seen this covered here several times and my take was that if the seller in "upside down" in total expenses vs income that the IRS doesn't uphold the taxes. Additionally this is true if the seller has been in the house for 2+ yrs. Am I mistaken??
Thanks--Jim
I saw them speak at the Orlando Conference. Dwan claimed to have done over 1000 deals in the past 10 years which I feel is absolutely not true!
She had some very good information and some information that I did not agree with. For example, she teaches not to get the deed until after you negotiate with the bank and have a committment from them to give you a discount. What happens when the tell you they will discount the note from $180k to $135k and you approach the seller for the deed?? Once they find this out you risk the chance of them backing out and having a relative or friend purchase the property at this discount and selling the house back to them. All your hard work down the drain.
If I am going to go thru all the hard work of doing a short sale and working with the bank, you can better believe I am going to get the deed. The key is not to record it.
Maybe TheShortSalePro can give some input on this...
Best Riches,
Jeff Adam
[addsig]
The SSP also does not believe in "getting the deed".
I have gotten the deed and I have not gotten the deed in doing a SS.
I have also had people who signed the deed want their house back because a relative loaned them the money, they just changed their mine, or whatever. Bottom line is that if a homeowner raises a stink you will tear up the deed and give them their house back. Nobody wants to be on the evening news. So getting a deed is no guarantee.
You have to get a P&S for a SS, so when they sign that, they are signing a binding contract and agree to sell the house to you. So you can use the P&S in place of getting the deed to contractually obligate the homeowner. But then again, if they cry and moan you will tear up the paper work because they are the naive homeonwer and we are the slick investors.
Brenda
I hear what you are saying, however I have found that sellers are more inclined to back out if you dont have the deed. This is just from my personal experience. You have to do what works for you...
Best Riches,
Jeff Adam
[addsig]
I have Dwan and Sharon's course and have found it informative and helpful in my ability to negotiate successful short sales.
They teach that we should always ask the bank to 'waive any deficiency judgement against the homeowner' because to leave the homeowner with a judgement is not helping them at all. In fact, they say to make it a condition of the offer.
They also say that the bank may sometimes issue a 1099 to the homeowner for the difference in the amount they owed, and the shorted sales price. They suggest that this may not be a huge hardship on the homeowner, since presumably they will be in a lower tax bracket, due to the distressed financial situation they are in. (Personally, I would think paying some taxes would be preferable to having a foreclosure on my credit report.)
I never get the deed. When I'm working with a homeowner, I tell them upfront that I am going to try to get the bank to agree to as low a price as I can. They know I'm an investor and this is my business. I have them sign a few blank contracts, so I don't have to go back to them every time I change the offer amount while negotiating with the bank. They don't know until the closing what the bank has agreed to accept. And the bank has agreed to accept this amount from ME. Not just anyone can jump into my place and pay that amount--so I don't worry about them trying to get a friend or relative to buy it and rent bank to them. (If that were an option, they wouldn't have contacted me or be working with me). One KEY is that YOU HAVE TO HAVE THE HOMEOWNER UNDER CONTROL. Their cooperation is imperative to a successful short sale.
Jeff: It's possible to do 1,000 deals in 10 years... but it depends upon the capacity of participation.
As a 'facilitator' it's entirely possible to work with a dozen or so investors each month and help their transaction along.
Personally, in the 20+ years since my first short sale, I've been involved with 1,000s of shorts. Sometimes working on staff for the Mortgage Lender, sometimes working as a Consultant to Real Estate Investment Clubs, or for Brokers with an inventory of overpriced, unsold property, or individual homeowners who need to sell but owe more than their homes are worth.
Jim: "I've seen this covered here several times and my take was that if the seller in "upside down" in total expenses vs income that the IRS doesn't uphold the taxes. Additionally this is true if the seller has been in the house for 2+ yrs. Am I mistaken??"
The two year rule has to do with capital gains tax, and is unrelated to ordinary income tax.... Mortgagees who forgive debt will file an IRS form 1099 to reflect the amount of forgiven debt. The IRS gets a copy, and the Seller gets a copy...not at closing, but right around income tax time... In most situations, the Seller does not have an exposure to a tax liability.... but it depends and you should always recommend that the Seller consult with a CPA about the tax consequences of forgiven debt.
[addsig]
ShortSalePro: I totally agree with you it is possible to do 1000 deals a year depending on how you clasify it. What I am talking about is actually purchases. It is very rare for someone to actually buy/sell 100 deals a year. I know of a guy who has actually has done it, but for a single mother, I highly doubt it. But you are right, as a facilitator it is possible....
Best Riches,
Jeff Adam
[addsig]
Jeff,
One of the primary conditions for the SS imposed by lender is the residence must be occupied by the present owner. By getting the Deed you are transferring the ownership and disqualify your candidate for the Short Sale.
You may argue that you just getting the Deed but not recording it. Well, in this case you have no control over the homeowner anyway.
A prerequisite to any Short Sale package is a signed contract between the purchasing entity / person and the present owner. This signed contract may be used as a recordable instrument (In some states) to cloud the title in an event the homeowner has changed his mind and you already have an approved Short Sale on your hands after 3 month of work.
One other alternative in this situation is to approach the original lender and ask them to convert an approved Short Sale into a Mortgage Note purchase of the same price. More often then not the mortgagee will agree to it because it’s much cleaner for then to facilitate this transaction.
Then, as a new lender, you are not obligated to honor a deal that the original Mortgage Owner has approved.
Either way, you are in control of the deal. The only disadvantage for the second approach is that you will need to pay cash for the Mortgage Note and be ready to close faster then in regular Short Sale transaction.
Dmitry.
SSP--
Yep, I agree with you. Too I was thinking if someone has truly done 1000 short sales and never had anyone complain about having to pay the taxes then it must be true if the sellers are upside down. THanks for being so active on this site--Jim :-D
Quote:
On 2004-08-06 00:10, JeffreyAdam wrote:
I saw them speak at the Orlando Conference. Dwan claimed to have done over 1000 deals in the past 10 years which I feel is absolutely not true!
She had some very good information and some information that I did not agree with. For example, she teaches not to get the deed until after you negotiate with the bank and have a committment from them to give you a discount. What happens when the tell you they will discount the note from $180k to $135k and you approach the seller for the deed?? Once they find this out you risk the chance of them backing out and having a relative or friend purchase the property at this discount and selling the house back to them. All your hard work down the drain.
If I am going to go thru all the hard work of doing a short sale and working with the bank, you can better believe I am going to get the deed. The key is not to record it.
Maybe TheShortSalePro can give some input on this...
Best Riches,
Jeff Adam
Really Jeff!
Is it that hard to believe?
Let's see I have over 300 bird dogs throughout the central United States working on bringing SFRH to my investment companies. The volume of real estate I deal with would boggle the minds of many.
Don't limit your self by belief that something is not possible.
Jeff with real estate there is no limits, unless we limit our selves!