Is anyone double dipping on short sales and buying notes? If not, they should! So, how do you that? Listen closely.
I’m a broker. I have a short sale listing. Clearly, they have missed payments if I’m advertising it’s a short sale, at least 99% of the time. It was a 500k home until about a year ago. Now it’s a home worth 400k. Unfortunately, the owner still owes 500k. They are 100k upside down or in the hole. So, I have it listed, and we get an approved short sale from the lender at 350k. All the while, I’m talking to the secondary market about their “non-performing” note and secure the purchase of the note at 250k.
Now, I’m the bank! And I tell the buyer’s agent that the “new bank” still wants to honor their short sale of 350k. It never goes back on the market for me to flip, and the Joe the homeowner never has a short sale filed as a “settlement” on their credit! The buyer’s agent gets their commission, and my gross is the 100k spread and my commission! Everybody wins!
Now, you can do this with any short sale listing. 99 times out of a 100, they have missed payments which makes this a perfect candidate for short paper/note purchase because it’s non-performing. Group the short sale listings in your market together to create mini-pools to get a bigger bang for your buck and pay both the listing agent and buyer’s agent their commissions to close your deals. All the agents will be working with you in no time!