Any short sale investor worth his salt knows the most important part of the short sale process is controlling the BPO. Or more specifically, getting the BPO to come in low enough to justify your ridiculously low offer.
Here’s a couple of guys who could really use some help in this arena…
DC “Virtual Short Saler” Fawcett and Nathan “Stick Boy” Jurewicz.
How these guys EVER came to be short sale “gurus” with these kinds of shenanigans going on, I’ll never understand. 😉
Enjoy, “How to Control the BPO (Not)”…
httpvh://www.youtube.com/watch?v=CbquUeqWHfU
Funny video…how long to produce?
🙂 PS
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Have you done any analysis on DC Fawcett’s Virtual Short Sale Investing (VSSI) program?
Not to mention what they are “suggesting,” in this ridiculous video is illegal. The BPO is done by a broker who legally swears to not have any personal involvment with the property under penalty of law. Since the Broker is paid between $60.00 to $125.00 per BPO, I doubt they would lie for this a-holes. Also BPO’s are subject to strict lender review. No one is giving anything away. If these guys are claiming this is not the way to do it, BUT they can show you the REAL way to make money…for a price, go ahead, you will be that next sucker. Its marketing principle 101.
Hi, Nick – you know this video was meant to be funny, right? The whole thing was tongue in cheek. Was the humor just lost on you?
Regardless I’d like to respectfully disagree with your assessment that the core principal “suggesting,” (influencing the BPO) is illegal. Where are you getting that?
There are no laws I’ve ever seen or heard of that say an investor can’t provide a BPO broker with helpful information to make a more accurate assessment. I’ve been an investor for the last decade, and also did BPOs as a broker for about a year – I know both sides pretty well.
And while anyone with integrity would never want to entice a dishonest value, the fact is a BPO is just a broker’s price OPINION…and that opinion is typically based on way less information and less expertise than an actual appraisal. And for the price they’re paid for their time in doing them, many brokers are pleased as punch to have helpful info (decent comps, repair estimates, etc) already on hand to save them time.
There’s a known margin of error in these things, and it only makes sense that you (as an investor) can and should feel free to make your case for the value you feel is justifiable. Like any opinion, it can and likely will vary from one guy to the next. So there’s no harm and nothing foul in doing your best to make your own case to the broker for how you feel you can justify a particular price….and whether you realize it or not, it’s pretty much how the game is played day to day.
Think of it this way: People challenge appraisals all the time when they feel the appraisal amount is justifiably off base, don’t they? Is that illegal? If so, then why do we see adjusted appraisals result sometimes? No one’s really saying you do anything covert or dishonest here…just be involved and make your best case, that’s all.
Hey, thanks for commenting!
…jp
Dear JP,
I have worked both sides of the real estate game and I am a Real Estate Broker. I have been involved in this business for the past 23 years. I’ve done flips, renovations, rehabs, sales, marketing, BPO’s. I know BPO’s and I also know that they are reviewed carefully by the asset managment company and the lender. Depending on the situation one or both will be scrutinizing a BPO. Helpful information provided by an investor you say? A normal BPO requires three recent comparable sales and three competing comparable sales, not to mention photos of everything. A proper BPO is an educated opinion, meaning it is backed with facts that a reasonable person would agree with. The Realtor does not need “helpful,” information such an “investor,” could provide.
Further investigation into DC Fawcett and his ilk claim that sales are made by contracting a Seller at a low price and then having a Buyer at a higher price. the difference is your profit. Yeah that’s great except there are a few operational issues. The BPO and current lender for one. The lender is not going to write off a gigantic loss. Most banks are having trouble agreeing to a reasonable offer, at least here in the Northeast.
The other part of the equation is the Buyer. The Buyer’s lender is not going to give a mortgage without an appraisal and that appraisal better come in on the loan amount or better. So chances are you will not be able to sell it for more than its worth. So you are pressured from both sides, and both sides are really scrutinizing the deal. So it may be possible, but it sure as hell is not easy or common. I doubt this is anything more than a get rich quick scheme designed to prey upon deparate people. Its despicable.
By the way, thanks for all the flowery bluster on how no one is suggesting anything illegal and that this is supposed to be funny. Funny was not lost out on me smaaaaaaarty pants. What also was not lost on me is how this is designed to virally attract unknowing individuals into the real scheme by purchasing something, usually a CD, DVD, Manual, etc. Like the proverbial carrot dangled in front of the horse, that is where the REAL money is being made.
Nick099
Hi again, Nick/Tony – wow. After reading just the first part of your response, I started preparing a nice, “flowery” reply about how and why we’ll have to agree to disagree on many of the points you make.
Then as I kept reading, I realized there’s no sense in debating you here, brother. You’ve clearly got a nice-sized chip on your shoulder, and obviously your mind is made up, end of discussion. So respectfully, this ” smaaaaaaarty pants ” (nice one) won’t waste the effort trying to make counter-points to a closed mind.
Anyways, you got us. We’re all just here trying take advantage of you. Dang.
Hey, I gotta ask, man…why are you even here? What even brought you to my blog in the first place? And what kind of thrill is it to try and hurl Jr. High insults over the internet? . 😉
…jp
As someone who’s pulled thousands of bpo’s, this is what happens. First of all whenever an agent wants to meet me at the property I get pissed off cause I have to be at the property at a specific time whereas otherwise I’d do it whenever. Secondly when they try to point out what’s wrong with the property it makes me unconfortable because I had to sign a disclaimer not to discuss anything about the property with anybody. Third about 99% of my comparables are allready pulled PRIOR to getting to the property so I’ll be damned if I’ll use your comparables and change my entire setup around. Mostly I take your the stack of paperwork throw it in the back seat and when I come home it goes straight to the recycling bin…….