Friday, May 26th, 2017

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Short Sales Don’t Ruin Credit (And Other Lies)

Listen, I have to be honest with you…

I’m always a little suspicious when I read something that seems a bit over the top.  And like most of us, my inbox has been just STUFFED for the last few days with emails from folks trying to get me interested in downloading this “Short Sale Manifesto 2.0” thing.

So far I’ve pretty much ignored it (Other than noting that the author, Josh Cantwell, is apparently ramping up to GIVE AWAY his full home study course tomorrow – Thu. 8/28).

But today, with a few minutes to spare while watching Kelsey (my 1 year old), I gave in.  Downloaded it, printed it off, and sat down with some Pretzels and Coke for about an hour.

My Findings…

I’m honestly (and surprisingly) impressed.

And I’ll tell you EXACTLY what impressed me the most.

But understand that I’m no noob to short sales.  I’ve been through a number of courses and even helped put one together on the topic.  I’ve done a handful of ‘em myself, and frankly expected a freebie like this to be kind of…well, fluffy.

But as I leafed through all 63 pages, I was unexpectedly struck by no fewer than 11 “aha!” moments.

I’ve got to mow the lawn, so I can’t write a novel here.  But I’ll quickly highlight 3 of them for you below just to give you an idea of why I was impressed.

But before I do, let me just say, I honestly feel I’d be doing you a disservice if I didn’t urge you to download this thing for yourself today.

Why today?

  • First because I really liked it, and I think you’ll be surprised by a few “Aha” moments yourself.
  • And secondly because he’s apparently taking it offline tomorrow at Noon when he opens the doors for his full course.
    .
    I didn’t realize this until today myself.  So my suggestion is to go ahead and snag it now – even if you’re short on reading time today – or you’ll just miss out.

It’s really very, very good.  Josh could have easily charged money for it.  But he didn’t, because frankly he wants to impress you with how much value he can give away for free.

That way, more people will feel confident in what he’s offering in his full course tomorrow. (Not a bad strategy, by the way)

So here’s a few of my “aha” moments from earlier today…

6 of 11) Short Sales and the FICO Score

This is one I’ve seen bantered about lately in the forums.  The question is…is a short sale, in fact, better for the seller’s credit, or not?

Read the highlighted sections below…

Wow!  This is something I’m honestly caught by in complete surprise.  And truth be told, I’ve mistakenly misinformed the sellers in the handful of short sale transactions I’ve been involved in up to now.

Live and learn.

7 of 11) Deficiency Judgments: Do Lenders Really Enforce Them?

After the statement above, Josh goes on to discuss two specific benefits that still exist for the homeowner in a short sale transaction:

  1. They can be “financable” again sooner rather thanlater (in only 2 years versus 5 years according to current FNMA guidelines), and
  2. The possibility of avoiding a deficiency judgment.

Check this out…

Now let’s chase that one down with this…

I had no idea deficiency judgments could be such a lucrative backend business for lenders.

And clearly if the investor can negotiate this part away as a part of the deal they’re constructing, it’s a big win for the homeowner.

10 of 11) The New Fangled “Option Contract” Method (Instead of Land Trusts)

This one surfaced a few months ago.  I remember having a private conference call with Cory Boatright and Shaun McCloskey about it, where we tried to wrap our minds around how it works and exactly what it accomplishes.

Well the whole method is laid out inside this thing, from start to finish.

And I have to say…I GET IT NOW.

I can’t lay out all 4 pages for you in this blog post.  But here’s a part of it that I was particularly struck by…

This is another “hot item” I’ve seen kicking around as of late.

And this is a VERY INTERESTING concept I’ve never considered before.

Other stuff covered that I won’t go into here…

  • How to get free leads with a built-in Realtor that brings you deals and also helps sell them
  • 7 specific places to get “Referral Based” leads that cost you ZERO.
  • The “Secret” of how/why the “Option Method” works with short sales today (when Land Trusts often won’t)
  • 9 “Deal Killer” mistakes new short sale investors typically make
  • How to find the “sweet spot” in your area, and stick with it
  • Step by step, how to do a short sale deal and profit from it
  • What’s gone wrong with Land Trusts lately?
  • Gobs more…

The Bottom Line…

I was hesitant to get on board with promoting Josh’s “Manifesto 2.0” because, frankly, I was skeptical of whether or not it was of any real value.

It is.

And I think anyone in the business who’s involved in short sales (or is considering it) should download it before he takes of offline tomorrow.

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About 

JP Moses is a roughly-hewn man-child who first got into REI after reading Rich Dad, Poor Dad back in Y2K and went full time in 2002. He's tinkered in everything from landlording to short sales to rehabs to Realtoring to REOs to notes to owner financing, blah, blah, blah...Till he finally stuck his flag deep into wholesaling and has since flipped somewhere north of a couple hundred deals.

JP's not a “guru” but also doesn't think it's a bad word. Among his core values are authenticity, creativity, big honkin' value, general fun-ness and being unshaven. He's super proud to be chief blogger guy at REItips.com and host of the free REIology podcast. He also thoroughly enjoys sharing his 53 best real estate investing forms with anyone who wants them. You should totally check that out. :-)

  • Wow, that is news. Every is touting that it won’t hurt your credit as much with a short sale.

  • Wow, that is news. Every is touting that it won’t hurt your credit as much with a short sale.

  • Glenn

    JP-

    I arrived to the party a little late. Any chance I can get a copy of Josh’s 63pg manifesto that doesn’t seem to have any live links to it anymore in the articles here?

    Thx,
    Glenn

  • Glenn

    JP-

    I arrived to the party a little late. Any chance I can get a copy of Josh’s 63pg manifesto that doesn’t seem to have any live links to it anymore in the articles here?

    Thx,
    Glenn

  • @Glenn – Sure thing, Glenn. I’ll shoot you an email.

    …jp

  • @Glenn – Sure thing, Glenn. I’ll shoot you an email.

    …jp

  • Mike

    The manifesto link is unavailable. I just opened your article. Please help.

    Thanks,

    Mike A.

    Hey, Mike – sorry, I guess they took it offline. But I’d imagine they’ll re-release it in the future.

    My best,

    …jp

  • Mike

    The manifesto link is unavailable. I just opened your article. Please help.

    Thanks,

    Mike A.

    Hey, Mike – sorry, I guess they took it offline. But I’d imagine they’ll re-release it in the future.

    My best,

    …jp

  • Good post overall. Enjoyed reading it.