What Was I thinking putting an offer in on a Short Sale update.... AKA.... Give me My Man Cave!

Yeah... I got sucked in... sucked in big time on a super cool place that I blogged about not too long ago. (Read about my Short Sale Fiasco Here). I'm a dollars and cents kind of guy so I put in an offer on a place in a great location that made cents. I asked some questions.. I got some wrong answers.

Sure as a bear loves honey... the loan servicers come back and want $6,000 more then my offer. Comps say that's fair, my wallet wants to say no but the heart goes ahead and says yes. It's a great location... property is in great condition (vacation property) and geez.... I already have plans for the place. I Ok it... At this point for Las Vegas Real Estate, I think it's undervalued anyways and with my calculations of what I can rent the home out for... the return is a helluva better then what I would get in the bank and much safer then playing the Ponzi scheme taking place on Wall Street right now.

Just Stick a Big "SUCKER" on my forehead.... LOL!

Oh hey... Great job letting me know about that second loan Mrs. Listing Agent!

First lender approves the short sale last Friday after jacking me up for another $6,000 (Thanks Indymac!) and then I find out.. there is a SECOND LOAN! What the???? (The Listing Agent originally told me there was only one loan.)

Of course.... the sellers "chosen" Title officer never bothered to send me over a Preliminary Title Report long, long ago when we had an accepted offer... My Fault... I should have asked for it to review when the offer was first accepted but I was so busy taking care of my clients.... I put my own business on the back burner.

Now... the second "debt collector" issues a letter of approval on 06/27/2011 ON THE CONDITION that it closes by 06/30/2011 or the seller has to come up with another $2,500.

WHAT THE????

An ordinary buyer or a first time buyer would not be able to handle this.

Rush Emergency.... Scramble, Scramble, Scramble... Title sends over all of their closing documents to sign. Reviewing them... I catch another problem...

Hello Kids... there is A MASTER PLANNED Association also involved here where you need another HOA payoff demand. How did you not know that????? UGH!!!!

Reviewing the Settlement Statement

Escrow fees... Jacked up. Whoa... wait a second... I'm getting charged for the home warranty when I asked for the seller to pay for it?? Oh yeah... Mrs. Listing Agent forgot to tell me that not only did Indymac want an additional $6,000.... they also said they would not pay for a home warranty... FANTASTIC!

Now you know one of the reasons why so many short sales have buyers back out.

THANKS for Letting me Know!

Message sent to the Title Company that their fees are jacked up... no questions asked and they take care of that number. Money wired in, documents signed... hopefully set to record today. Yeah... today or the second "debt collector" named LTD Financial Services is going to want the seller (or me) pay an additional $2,500. Thanks a lot LTD Financial Services.

Am I MAD, MAD, MAD???

No... not really. I came across a great property that is move in ready in a great community where I know that the cash on cash return is going to be about 15% once I do turn it into a rental. Of course... I would have rather taken the $6,000 and partied it up in Las Vegas then giving it to some scumbags that are who knows where but it is what it is.

I personally don't give too much of a Hoot about Las Vegas Real Estate Values at this point anyways if you look at what really matters

Whatever... Las Vegas Real Estate is undervalued and the cash flow numbers are what I care about. I got a great property that is highly desirable in Las Vegas and I'll have ZERO problems renting it out when the time comes AND get a nice return for the cash laid out. It could have been better but it is what it is....



Paul Francis, CRS
Las Vegas Real Estate
702.592.3058