Realtor Profits $17,941 on 1st Short Sale and Now Sees the Light
Michele Ashton
NASHVILLE, TN - A tremendous weight was lifted off Michele’s shoulders as she was driving to the bank with a check for nearly $18,000 in profits created by closing her very first short sale deal using Phil Pustejovsky’s Short Sales Step By Step system. Michele is a licensed real estate agent and has the Realtor designation. She saw the vast profits made from real estate investing and began her foray into investing by doing subject to and lease purchase option deals. And although those techniques can produce terrific financial returns, she also found they created profits with “strings attached”. The reason those profits have “strings attached” is because until the property has been sold to the end buyer, in a subject to or lease purchase option deal, whatever cashflow or upfront money is recieved, must be socked away in savings to cover the massive amount of expenses that occur when the tenant stops paying rent.
What gave Michele such relief on this deal was the fact that with her short sale profits, those funds could go into her bank account and she could spend that money immediately. No strings attached. That was cold, hard cash that she could do whatever she wanted with. As you’ll see in the below video, she even video recorded her trip to the bank so you could see what happens after the closing and what the proper way to handle a $18,000 check is. Then, below the video, I’ll describe the nitty gritty details of how she found the deal, how she negotiated the short sale, how she found the buyer and how she closed the deal without any of her own cash or credit.
Michele Ashton Success Video
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The Nitty Gritty Details
As you heard from the video, Michele located this deal from a paid internet lead (www.betterinvestorleads.com/reli). The owner was upside down in the house and had no way to make future payments. He was very easy to work with, extremely motivated and let Michele do everything she needed to do to help him without any hassles. There was only one loan, with Wells Fargo, and it was an FHA loan so there were a few extra details she had to take care of like making sure the HUD reflected $1000 going to the seller as a HUD incentive and making sure the borrower went to a HUD counseling session. That was taken care of easily and quickly.
One bonus of the FHA short sale is that they always disclose the BPO, which came in at $124,000. This was a very helpful number since she would go on to find a buyer for $134,900. These days, FHA starts off at an 88% approval but then goes down 86% after 30 days and finally, down to 84% after 60 days. Michele received her approval letter on 06/15/09 in the amount of $109,120 (which is 88% of $124,000) and she immediately put it on the MLS for $139,900 that same day. Within a few days she had an offer of $134,900. Well ahead of schedule, on July 10th, the deal closed with Michele walking away with nearly $18,000. Her title company did not require transactional funding in the middle so she didn’t have to pay that extra closing expense. It was a clean, smooth closing with almost no bumps in the road. About the only thing that came up was during the inspection, a few shingles had blown off in a storm the night before and the inspector picked up on that. So Michele paid $75 to a roofer guy to jump up on the roof and replace the shingles. Other than that, the deal was smooth sailing.
You may be asking yourself why Michele didn’t get the lender to accept 86%. The reason is that FHA now has a new set of rules whereby from the day they issue the approval letter, in this case, 06/15/09, the first 30 days, the approval is for 88%. Then, they have the ability to drop it to 86% after 30 days, or on 07/15/09 in this case and then drop it again to 84% after 60 days, in this case, on 08/15/09. For Michele, the closing was way ahead of schedule (07/10/09) so she went with the strategy to take the money and run. I would hope you would do the same. A bird in the hand is better than two in the bush. Had she waited, she would have had to submit a new offer to get the 86% which could have taken days or even weeks (althought it would have brought the approval amount to $106,640, effectively giving her over $2000 more in profits). The problem is that waiting could have killed the deal altogether and any of a number of issues could have popped up, like the buyer’s lender not funding the loan, the buyer falling in love with another home, you name it. So the moral of the story is that Michele took the correct approach and grabbed the getting while the getting was good. You want to do the same. Think of Steve Miller Band’s classic song, “…Go on and take the money and run, whooo, whoo, who, Go on and take the money and run…”
You too can experience the incredible feeling of depositing huge checks into your bank account consistently by joining the exact same program that has changed Michele’s life. Simple CLICK HERE