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Short Sale Riches

This topic contains 15 replies, has 0 voices, and was last updated by Avatar of homesavers NULL 10 years, 3 months ago.

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  • #5733
    Avatar of homesavers
    NULL
    Member

    Anybody attend the NARS seminar this past weekend? I am especially interested in how the Short sale program with The California Housing Group(TCHG) is coming along. I am trying to understand how the numbers work. I am personally working on three short sales with more coming from my network and marketing efforts. At this point I have heard that Chad’s group gets 80 percent of the profit spread. The other 20 percent goes to NARS with a minimum of 20 percent of the NARS profit going to the Transaction Coordinator(TC). I will not get into the details of Ruby level membership as I will leave that to Bill. So I am trying to understand why Chads group gets so much of the profit spread when all they are doing is the negotiations. I have about 4 negotiation experts that I personally know. All charge a flat fee.
    My main question here is who does what to get these closed? Does the TC have to sell the Seller and or Sellers Realtor(r)? Does the TC have to find a buyer? What is the value add to have Chad’s TCHG company negotiate the deals for 80 percent of the profit? See the example below:

    200K FMV
    190K Sales price to final end buyer
    170K BPO and offer by investor
    20 K spread not including closing costs, commissions, etc.
    16K to Chad’s CHG company
    4K to NARS
    800 dollars to the TC (not taking into account Ruby level)

    My set up
    200K same as above
    190K same as above
    170K same as above
    20K same as above
    3400 to “flash funding” lender
    3000 to “negotiator fee”
    13,600 to my company

    I have to be missing something here because Bill is the most honest, straight up guy I have ever met in this business. Maybe I am dreaming I really do not know.

    #29769
    Avatar of corkhorner_2
    corkhorner_2
    Member

    I am curious as to where you are getting this info from on the pool sharing?
    Have you checked with your Account Manager?

    cork horner

    #29770
    Avatar of homesavers
    NULL
    Member

    @CorkHorner wrote:

    I am curious as to where you are getting this info from on the pool sharing?
    Have you checked with your Account Manager?

    cork horner

    Bill

    #29771
    Avatar of homesavers
    NULL
    Member

    Cork,
    Another thing I would not post info on the pool sharing as hearsay in this forum. I got that split info direct from Bill. Why did you ask the question? Did you hear different?

    #29772
    Avatar of corkhorner_2
    corkhorner_2
    Member

    I think it is prudent to not go into at length what applies only to SoCal for now re NARS/TCHG joint venture and Texas about to begin.
    My question to you was: did you check with your Account Manager? have you been to any of the Ruby level trainings on Thursdays?

    I don’t, because I have a working relationship with the appointed Account Manager for san Diego County who ‘keeps me filled in’ as things evolve/change.
    Imo, this latest approach to Short sales is anothe niche market, it’s not for everybody and it is ‘not perfect’. That means there will be Short sales that don’t get accepted by the lender but they will go back to the seller with a ‘ready to go short sale package’ at a stated price/value agreed to by the lender.

    cork horner

    #29773
    Avatar of homesavers
    NULL
    Member

    @CorkHorner wrote:

    I think it is prudent to not go into at length what applies only to SoCal for now re NARS/TCHG joint venture and Texas about to begin.
    My question to you was: did you check with your Account Manager? have you been to any of the Ruby level trainings on Thursdays?

    I don’t, because I have a working relationship with the appointed Account Manager for san Diego County who ‘keeps me filled in’ as things evolve/change.
    Imo, this latest approach to Short sales is anothe niche market, it’s not for everybody and it is ‘not perfect’. That means there will be Short sales that don’t get accepted by the lender but they will go back to the seller with a ‘ready to go short sale package’ at a stated price/value agreed to by the lender.

    cork horner

    Right okay I agree. I did with the AM over here. He confirmed the split. Yeah half of short sales will not close and they will take a long time to pay out but that is what the market is offering right now so I am going to jump on this ship before it sails off again.

    #29774
    Avatar of corkhorner_2
    corkhorner_2
    Member

    Homesaver, being on the many ‘ships’ since 1961 when I was first a know-it-all agent at the crisp age of 24[!]
    My experience there are lots of ships going a lot of places ALL the time–especially ‘cre’ channels.

    I know, what do I mean by that.

    There are many cre activities all the time, in every city with different ‘ships’ coming and going. Called, in other words; the cycles.

    I ponder what are all the boats doing, in what cities, and then appropriate whatever energy I want to apply. Albeit flipping to wholesalers for ‘walking around money’ to working on getting various EHT’s into the ppipeline and just plain ‘paying attention ‘
    The greatest challenge these days ;lies in knowing what the wind is doing and where the boats as sailing to.

    If ya watch Congress and Bernanke, one would wonder if ‘anybody’ knows anything these days.;

    i didn’t know Bill G was back priming the pumps, back then, when I started out as a snot nosed Rookie. Now, snot nosed ~50 years later, I continually am looking for who hid the cheese.

    I know, I know, what the hell did he say.

    Sorry.

    ch

    #29775
    Avatar of homesavers
    NULL
    Member

    Okay thanks for the input but let’s not going sailing off from the original question and intent of this thread. To answer, Why is Chad getting such a big piece of the pie? What is he doing and what are we doing? If I am just sending him a name, address and phone number a checking into a few details then 20 percent is great. If I have to market and sell the concept to each Seller and their Realtor then that is another thing.

    #29776
    Avatar of corkhorner_2
    corkhorner_2
    Member

    homvesaver,
    Have you had explicit conversations with your Account Manager , yet?

    That is handled there.

    i am building a team for San Diego county consisting of my dedicated broker and agents who will be on our team.

    Of course, you can choose whatever you like.

    cork horner

    #29777
    Avatar of homesavers
    NULL
    Member

    @CorkHorner wrote:

    homvesaver,
    Have you had explicit conversations with your Account Manager , yet?

    That is handled there. …

    The answer to the question of why Chad’s company (California Housing Group) is getting 80 percent of the NET profit is not at the AM level. This answer comes from the top of this pyramid.
    I appreciate your input but you are not the person that should be addressing this. I need to figure this out so I can be comfortable giving up 80 percent plus 80 percent of the 20 percent NARS gets. This leaves very little for the “little guy” on the street.

    #29778
    Avatar of corkhorner_2
    corkhorner_2
    Member

    Homesaver,
    you may notice the agenda of todays meeting in Irvine Jul 23 2009 addresses many issues around what MAY be your concerns?

    U R right, it is NOT my intention or position to speak ‘for the system’.

    If you are attempting to get the ‘hierarchy’ to publish its propretary intellectual propert here, it is gonna be a looooong wait. It would anti productive . Does Macy’s tell Gimbles?

    You may notice too, the training in San Antonio coming up will include short sales.

    a suggestion: the meeting in Irvine starts at 10 a.m. today—’go there’?

    Have your ACCOUNT MANAGER represent your questions?

    Here is my viewpont: it’s still a ‘free country’ [at some level] and ANYBODY is welcome to start their own widget and gadjet service.

    I recommend you do 2 short sales in actual real time….as I am. One thru ‘my way’ and one thru NARS/TCHG. Then compare time and volume results.

    Dealt with the ‘Customer service Center’ lately where they are handling 120,000 mortgage arrears/nod’s/loan mods and short sales? Spent any time on the phone with them, lately? I do/I have.

    cork horner
    non of my business dept

    #29779
    Avatar of homesavers
    NULL
    Member

    @CorkHorner wrote:

    If you are attempting to get the ‘hierarchy’ to publish its propretary intellectual propert here, it is gonna be a looooong wait. It would anti productive . Does Macy’s tell Gimbles?

    Why someone is requiring 80 percent of the profit has nothing to do with intellectual property. I have no interest in what CHG is doing to put the deals together. Have you ever worked at a JOB? Say you got paid 10 dollars an hour. Your employer got 8 dollars you get 2 dollars. I think you would start asking questions don’t you?

    Sure there are other ways to push a short sale through. I personally know at least 6 negotiators and 5 transactional funding sources. If one fails me I just fire them.

    However, you may have hit on something significant-Volume. If I can do 10 and spend 1 hour per deal for 2000 dollars versus doing 1 and taking 5 hours that may be significant depending on how much I make per deal.

    I do not know about you Cork but I have one Hell of hard time making other people rich.

    #29780
    Avatar of corkhorner_2
    corkhorner_2
    Member

    Homesaver,
    So, you are doing a voluminous short shale program with your ‘team’?

    I am plugging along one at a time and also am the ‘Transaction Coordinator’ WITH buyer contracts submitted. so far, I have been on the phone with Bank of America on the most recent one for the last 30 days.

    I disagree with your what is proprietary and what is intellectual property.
    I don’t think it is prident to market company trade secrets on the World Wide Wait system.

    As to your 80-20 perspective, I know most General Contractors and specialty trades pay out about 20% of their hourly charges to employees.
    Unless they use subs and more volume.

    If it bothered me as much as it bothered you, I would be talking to Bill Gatten and Chad Lyon IN PERSON and not on a witch hunt on the internet. Do you REALLY expect them to address you here?

    Your last sentence is the most telling. You “have a hard time making others rich”. ‘Rich’ and wealth lies in team building and sharing the wealth based on WHO is doing what.

    over,
    c h
    ps
    Again, you are right, I don’t answer the questions you are seeking.

    #29781
    Avatar of bill_gatten
    bill_gatten
    Participant

    Pardon me for jumping into your little repartee Don and Cork, but let’s get something straight. We now have 45 transactions in process and 65% (at least of them will get approved). Our offers are at 85% of the the appraisal, and all-cash with immediate full (legitimate) proof of funds, no contingencies and As-Is.

    We fund instantly and buy instantly.

    Benefits for listing agents…

    Option #1 (old way): – YOUR WAY

    Keep Banging your Head against the Wall

    Option #2 – OUR WAY

    Our Expert Program: All-Cash Buyer and Professional Negotiation Team

    Your way…

    1 Marketing your short sale listing, costs you time and money

    Our way…

    No marketing needed, save time and money we buy now

    Your way…

    2 Wait for a buyer ??? could be weeks or months

    Our way

    No waiting ??? immediate offer from Buyer (us)

    Your way

    3 Can???t start bank negotiation/your file until you have bona fide offer

    Our way

    Bona fide offer is instant ??? bank negotiation starts immediately

    Your way

    4 Buyer loses interest after waiting months for bank approval Buyer will still be in place, waits as long as needed

    Your way

    5 Listing Agent commission reduced

    Our way

    Listing Agent receives full commission with no charges of any kind against it

    Your way

    6 Listing Agent spends time / headache negotiating with bank

    Our way

    Professional short sale team handles the negotiation

    Your way

    7 You risk law suit for proffering legal advice & breaking the law

    Our Way

    All dealing reviewed and approved by our attorneys, all of whom are approachable at any time for legal advice

    Your way

    8 1st TD & 2nd TD holder disagree on payoff for 2nd TD

    Our way

    Our high trained and skilled full-time experts get both/all note holders to agree on 2nd TD payoff

    Your way

    9 You are usually in over your head an fighting your way through despite the hassles (salespeople are not designed to negotiate complex SS transactions)

    Our Way

    Leave it to the pros experienced in working short sale negotiations with the banks

    Your way

    10 You are frutrated because bank won???t respond to or return your calls or faxes; they won???t give you their email address…or time of day.

    Our way

    Our well-paid, full-time professional negotiators have highly developed personal relationships with virtually all key banking personnel, greatly expediting the process

    Your way

    11 Mountains of paperwork overload overwhelms Seller / Listing Agent

    Our way

    We handle ALL paper work and have streamlined the documentation process, making paperwork almost unnoticeable.

    Your way

    12 Listing Agent must constantly be addressing Seller???s doubts and nervousness re. timing during the long drawn-out process

    Our way

    Professional team manages the Seller???s expectations and communicates regularly

    Your way

    13 You have to appease Buyer and Buyer???s Agent, needing constantly to communicate, keep updated, negotiate, manage expectations, worry about nervousness & backing out..

    Our way

    Our all cash Buyer is a professional corporation and needs no hand-holding or communications with anyone…and they keep all parties apprised of day-to-day progress, including you.

    Your way

    14 Consumes all your time and energy and drains you while creating wholly unnecessary anxiety and stress and worry

    Our way

    Your time is freed up so you can go out and get more listings

    Your way

    15 Seller is worried and a big bother throughout process

    Our way

    The Seller has peace of mind and is apprised of all day to day progress

    Your way

    You put up signs run open houses, put ads in the newspaper, print up fliers and wait moths for an offer.

    Our way

    You spend nothing on advertising…we make an immediate offer and the property is sold and your commission is on the way.

    Your way

    You typically get 1 out of 10 SS applications approved (don’t say otherwise…we know the statistics)

    Our way

    We get 6-7 out of 10 approved and the approvale rate is climbing.

    Your way

    You do the work and have to pay for ancillary costs (appraisal, home inspection, beneficiary statements, negotiations with junior lien holders, insurance agency, Home Owners Association, PMI carrier, etc., etc.

    Our way

    We do ALL of that and cover all related costs.

    Your way

    If your offer is inadequate you don’t get the deal

    Our way

    If the property needs repairs or the bank wants a little higher offer, we comply and pay for all such costs

    Your way

    After your approval if you have a GNMA, FHLMC VA or FHA you have anywhere from a 30 to 120 seasoning period bedofee the deed can be transferred.

    Our way

    No seasoning irrespective of the type of financing.

    #29782
    Avatar of homesavers
    NULL
    Member

    @CorkHorner wrote:

    Homesaver,
    So, you are doing a voluminous short shale program with your ‘team’?
    No I am at 1 signed and 6 more coming this weekend

    I am plugging along one at a time and also am the ‘Transaction Coordinator’ WITH buyer contracts submitted. so far, I have been on the phone with Bank of America on the most recent one for the last 30 days.
    Why are you on the phone with the bank? That is not the job of the TC.

    I disagree with your what is proprietary and what is intellectual property.
    I don’t think it is prident to market company trade secrets on the World Wide Wait system.
    I agree you should not market company trade secrets on the internet

    As to your 80-20 perspective, I know most General Contractors and specialty trades pay out about 20% of their hourly charges to employees.
    Unless they use subs and more volume.
    This is new to me but it figures that is why the General Contractors are living in the houses on the hill and the employees are in apartments

    If it bothered me as much as it bothered you, I would be talking to Bill Gatten and Chad Lyon IN PERSON and not on a witch hunt on the internet. Do you REALLY expect them to address you here?
    I did talk to Bill about it. I do not know how to contact Chad. Looks like Bill has well answered the question below

    Your last sentence is the most telling. You “have a hard time making others rich”. ‘Rich’ and wealth lies in team building and sharing the wealth based on WHO is doing what.
    Right but make sure you are not acting as someone’s “dog” for very long.

    over,
    c h
    ps
    Again, you are right, I don’t answer the questions you are seeking.
    Actually you have answered them indirectly. Thanks.

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