When I moved back to New York City from Scottsdale, Arizona, I was already an expert in short sales because I had gone through five of my own. I had bought a bunch of properties that lost their value, so I knew what it took to sell a home for less than you owed. My prior experience is the reason I have this story to share with you today.
Since I was looking to break into the New York City real estate world, I met a broker who said that if I helped him with a complicated short sale I could be part of the transaction.
There was a first position mortgage, a second position mortgage, and a bankruptcy estate. The gentleman owed $4.2 million and could only sell it for $3.8 million. It was hard to sell because the market was slow and people did not know what a short sale was.
We had to negotiate with three banks and get them to accept the offer of $3.8 million. While that is a lot of money as far as Chase Bank was concerned, it was not enough. Since there was also a bankruptcy involved, we had to show all the parties that we were getting them the most money possible, which we were.
"We had to negotiate with three banks and get them to accept the offer of $3.8 million."
The secrets to doing a short sale are as follows:
1. The property must be listed professionally.
2. The agent and seller must demonstrate strong marketing strategies.
3. Ethics and honesty must be shown by getting the most money for the property.
4. An excellent attorney, who can set the minds of the banks and lien holders at ease, must be involved.
5. The seller must be patient.
I was very grateful for the opportunity to break into New York City real estate with this complicated but lucrative transaction.
If you have any questions about short sales, please feel free to call or email. I look forward to speaking with you soon.