[urbanrealtor]

I do not know what is required for insurance however, typically the cash is insured by what Allan mentioned. I used to be a 1031 consultant and our fidelity bond was $10M for each occurrence and our E&O was 3M. This is a different scenario but i have found 1031 accomodators and escrows tend to read from the same playbook.

On the other side of that, I had a real estate instructor who described a situation where one of his deals died because the escrow imploded mid transaction. He was able to get the funds out but the deal was not salvageable. The greater difficulty and uncertainty I think is, first that the company (as opposed to the bank) goes bust and stops returning calls, and second, that (whether the failure is by the bank or escrow firm) that the client and/or the agent would have to locate and follow with the insurance company.

[urbanrealtor]

I do not know what is required for insurance however, typically the cash is insured by what Allan mentioned. I used to be a 1031 consultant and our fidelity bond was $10M for each occurrence and our E&O was 3M. This is a different scenario but i have found 1031 accomodators and escrows tend to read from the same playbook.

On the other side of that, I had a real estate instructor who described a situation where one of his deals died because the escrow imploded mid transaction. He was able to get the funds out but the deal was not salvageable. The greater difficulty and uncertainty I think is, first that the company (as opposed to the bank) goes bust and stops returning calls, and second, that (whether the failure is by the bank or escrow firm) that the client and/or the agent would have to locate and follow with the insurance company.

[urbanrealtor]

[quote=XBoxBoy]

For a while I was working with a buyer’s agent, and one day she showed me a house I thought had potential. I asked her, “What do you think is the best strategy to get the seller to come down in price?” She looked at me with a befuddled look (as if I was clearly out of my mind) and said, “I’m not sure what you mean, but if you like the house, then we should write up an offer for the asking price and hope they take it.” Needless to say, I stopped working with that agent.
[/quote]

Again, not to be dense but there are only a few strategies to get people to come down in price. Probably the only reliable one that I am aware of is to try to compensate for one crappy term by improving the other terms. For example I closed one on 30th that had asked 730 and come down to 630 over the course of 4 months. We offered 530 at 50% cash and 2 weeks of escrow. The implication of the offer as written was that the buyer is super qualified, motivated, and that the seller would not have to make another payment. They countered on price only and we got it for 545.

Unless one has the capacity to offer attractive compensating terms, there is not a lot of strategy that I am aware of. Most of the strategies that I have seen (eg some of the “formulas” for offering on REO’s) are total crap and not useful. This is an observation of my experience. Have others had experiences that they would like to share?

[urbanrealtor]

[quote=XBoxBoy]

For a while I was working with a buyer’s agent, and one day she showed me a house I thought had potential. I asked her, “What do you think is the best strategy to get the seller to come down in price?” She looked at me with a befuddled look (as if I was clearly out of my mind) and said, “I’m not sure what you mean, but if you like the house, then we should write up an offer for the asking price and hope they take it.” Needless to say, I stopped working with that agent.
[/quote]

Again, not to be dense but there are only a few strategies to get people to come down in price. Probably the only reliable one that I am aware of is to try to compensate for one crappy term by improving the other terms. For example I closed one on 30th that had asked 730 and come down to 630 over the course of 4 months. We offered 530 at 50% cash and 2 weeks of escrow. The implication of the offer as written was that the buyer is super qualified, motivated, and that the seller would not have to make another payment. They countered on price only and we got it for 545.

Unless one has the capacity to offer attractive compensating terms, there is not a lot of strategy that I am aware of. Most of the strategies that I have seen (eg some of the “formulas” for offering on REO’s) are total crap and not useful. This is an observation of my experience. Have others had experiences that they would like to share?

[urbanrealtor]

[quote=XBoxBoy]

For a while I was working with a buyer’s agent, and one day she showed me a house I thought had potential. I asked her, “What do you think is the best strategy to get the seller to come down in price?” She looked at me with a befuddled look (as if I was clearly out of my mind) and said, “I’m not sure what you mean, but if you like the house, then we should write up an offer for the asking price and hope they take it.” Needless to say, I stopped working with that agent.
[/quote]

Again, not to be dense but there are only a few strategies to get people to come down in price. Probably the only reliable one that I am aware of is to try to compensate for one crappy term by improving the other terms. For example I closed one on 30th that had asked 730 and come down to 630 over the course of 4 months. We offered 530 at 50% cash and 2 weeks of escrow. The implication of the offer as written was that the buyer is super qualified, motivated, and that the seller would not have to make another payment. They countered on price only and we got it for 545.

Unless one has the capacity to offer attractive compensating terms, there is not a lot of strategy that I am aware of. Most of the strategies that I have seen (eg some of the “formulas” for offering on REO’s) are total crap and not useful. This is an observation of my experience. Have others had experiences that they would like to share?

[urbanrealtor]

[quote=XBoxBoy]

For a while I was working with a buyer’s agent, and one day she showed me a house I thought had potential. I asked her, “What do you think is the best strategy to get the seller to come down in price?” She looked at me with a befuddled look (as if I was clearly out of my mind) and said, “I’m not sure what you mean, but if you like the house, then we should write up an offer for the asking price and hope they take it.” Needless to say, I stopped working with that agent.
[/quote]

Again, not to be dense but there are only a few strategies to get people to come down in price. Probably the only reliable one that I am aware of is to try to compensate for one crappy term by improving the other terms. For example I closed one on 30th that had asked 730 and come down to 630 over the course of 4 months. We offered 530 at 50% cash and 2 weeks of escrow. The implication of the offer as written was that the buyer is super qualified, motivated, and that the seller would not have to make another payment. They countered on price only and we got it for 545.

Unless one has the capacity to offer attractive compensating terms, there is not a lot of strategy that I am aware of. Most of the strategies that I have seen (eg some of the “formulas” for offering on REO’s) are total crap and not useful. This is an observation of my experience. Have others had experiences that they would like to share?

[urbanrealtor]

[quote=XBoxBoy]

For a while I was working with a buyer’s agent, and one day she showed me a house I thought had potential. I asked her, “What do you think is the best strategy to get the seller to come down in price?” She looked at me with a befuddled look (as if I was clearly out of my mind) and said, “I’m not sure what you mean, but if you like the house, then we should write up an offer for the asking price and hope they take it.” Needless to say, I stopped working with that agent.
[/quote]

Again, not to be dense but there are only a few strategies to get people to come down in price. Probably the only reliable one that I am aware of is to try to compensate for one crappy term by improving the other terms. For example I closed one on 30th that had asked 730 and come down to 630 over the course of 4 months. We offered 530 at 50% cash and 2 weeks of escrow. The implication of the offer as written was that the buyer is super qualified, motivated, and that the seller would not have to make another payment. They countered on price only and we got it for 545.

Unless one has the capacity to offer attractive compensating terms, there is not a lot of strategy that I am aware of. Most of the strategies that I have seen (eg some of the “formulas” for offering on REO’s) are total crap and not useful. This is an observation of my experience. Have others had experiences that they would like to share?

[urbanrealtor]

It has been my experience that using a broker as opposed to a bank employee for this can minimize this sort of thing. However, that means using a really good one.

This is because they only work for the buyer and only get paid by them upon a successful close. This adds incentive to either go to bat with the bank rep or to double down on a second loan. Either way, a good loan broker is a huge asset in a transaction.

The plus side with bank employees is that they sometimes have a better grasp on the idiosyncrasies of their loan products than a broker would have.

I cannot speak to your experience with Navy fed. Recently I closed one with them, and they were competent but it was clear that the individuals I dealt with were not broadly experienced or accustomed to dealing with curve balls. Unfortunately, there were many curve balls.

A good loan broker is a huge asset. A good bank employee has good skills and deep knowledge about the products they peddle. A poor broker is cheesy used loan salesman. A poor bank employee was a teller a month ago and doesn’t care about your loan closing because it has minimal impact on his regular salary.

I have only had one loan officer (broker or bank employee) who has given me zero drama ever. Dave Espinosa ([email protected]). No he is not paying me. No I am not dating him. I just really like his service. He is blunt and honest and says things like “I can’t quote you a rate without more information.” Being honest makes him more effective at his job but less effective at getting dumb or uninformed clients.

[urbanrealtor]

It has been my experience that using a broker as opposed to a bank employee for this can minimize this sort of thing. However, that means using a really good one.

This is because they only work for the buyer and only get paid by them upon a successful close. This adds incentive to either go to bat with the bank rep or to double down on a second loan. Either way, a good loan broker is a huge asset in a transaction.

The plus side with bank employees is that they sometimes have a better grasp on the idiosyncrasies of their loan products than a broker would have.

I cannot speak to your experience with Navy fed. Recently I closed one with them, and they were competent but it was clear that the individuals I dealt with were not broadly experienced or accustomed to dealing with curve balls. Unfortunately, there were many curve balls.

A good loan broker is a huge asset. A good bank employee has good skills and deep knowledge about the products they peddle. A poor broker is cheesy used loan salesman. A poor bank employee was a teller a month ago and doesn’t care about your loan closing because it has minimal impact on his regular salary.

I have only had one loan officer (broker or bank employee) who has given me zero drama ever. Dave Espinosa ([email protected]). No he is not paying me. No I am not dating him. I just really like his service. He is blunt and honest and says things like “I can’t quote you a rate without more information.” Being honest makes him more effective at his job but less effective at getting dumb or uninformed clients.

[urbanrealtor]

It has been my experience that using a broker as opposed to a bank employee for this can minimize this sort of thing. However, that means using a really good one.

This is because they only work for the buyer and only get paid by them upon a successful close. This adds incentive to either go to bat with the bank rep or to double down on a second loan. Either way, a good loan broker is a huge asset in a transaction.

The plus side with bank employees is that they sometimes have a better grasp on the idiosyncrasies of their loan products than a broker would have.

I cannot speak to your experience with Navy fed. Recently I closed one with them, and they were competent but it was clear that the individuals I dealt with were not broadly experienced or accustomed to dealing with curve balls. Unfortunately, there were many curve balls.

A good loan broker is a huge asset. A good bank employee has good skills and deep knowledge about the products they peddle. A poor broker is cheesy used loan salesman. A poor bank employee was a teller a month ago and doesn’t care about your loan closing because it has minimal impact on his regular salary.

I have only had one loan officer (broker or bank employee) who has given me zero drama ever. Dave Espinosa ([email protected]). No he is not paying me. No I am not dating him. I just really like his service. He is blunt and honest and says things like “I can’t quote you a rate without more information.” Being honest makes him more effective at his job but less effective at getting dumb or uninformed clients.

[urbanrealtor]

It has been my experience that using a broker as opposed to a bank employee for this can minimize this sort of thing. However, that means using a really good one.

This is because they only work for the buyer and only get paid by them upon a successful close. This adds incentive to either go to bat with the bank rep or to double down on a second loan. Either way, a good loan broker is a huge asset in a transaction.

The plus side with bank employees is that they sometimes have a better grasp on the idiosyncrasies of their loan products than a broker would have.

I cannot speak to your experience with Navy fed. Recently I closed one with them, and they were competent but it was clear that the individuals I dealt with were not broadly experienced or accustomed to dealing with curve balls. Unfortunately, there were many curve balls.

A good loan broker is a huge asset. A good bank employee has good skills and deep knowledge about the products they peddle. A poor broker is cheesy used loan salesman. A poor bank employee was a teller a month ago and doesn’t care about your loan closing because it has minimal impact on his regular salary.

I have only had one loan officer (broker or bank employee) who has given me zero drama ever. Dave Espinosa ([email protected]). No he is not paying me. No I am not dating him. I just really like his service. He is blunt and honest and says things like “I can’t quote you a rate without more information.” Being honest makes him more effective at his job but less effective at getting dumb or uninformed clients.

[urbanrealtor]

It has been my experience that using a broker as opposed to a bank employee for this can minimize this sort of thing. However, that means using a really good one.

This is because they only work for the buyer and only get paid by them upon a successful close. This adds incentive to either go to bat with the bank rep or to double down on a second loan. Either way, a good loan broker is a huge asset in a transaction.

The plus side with bank employees is that they sometimes have a better grasp on the idiosyncrasies of their loan products than a broker would have.

I cannot speak to your experience with Navy fed. Recently I closed one with them, and they were competent but it was clear that the individuals I dealt with were not broadly experienced or accustomed to dealing with curve balls. Unfortunately, there were many curve balls.

A good loan broker is a huge asset. A good bank employee has good skills and deep knowledge about the products they peddle. A poor broker is cheesy used loan salesman. A poor bank employee was a teller a month ago and doesn’t care about your loan closing because it has minimal impact on his regular salary.

I have only had one loan officer (broker or bank employee) who has given me zero drama ever. Dave Espinosa ([email protected]). No he is not paying me. No I am not dating him. I just really like his service. He is blunt and honest and says things like “I can’t quote you a rate without more information.” Being honest makes him more effective at his job but less effective at getting dumb or uninformed clients.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[Author]

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