Short Sales Support Subscriptions

FIX A FLIP FUNDING NOTE (November 3, 2009):

Fix A Flip Funding training module 3 teaches about legal documents. It presents generic forms that are available to FAFF members at the FAFF portion of the web site. Generally, FAFF and Short Sales Riches teach from the same generic transactional form set, most of which was contributed by Ron Ballard. Investors doing deals in California have the advantage that California real estate attorney Ronald Ballard, is creating a California specific form set for FAFF (and SSR). Many documents are ready now via the Short Sales Riches ("SSR") Support Subscriptions. More forms will roll-out or be updated throughout November, so that the purchase and sale library is complete by the Las Vegas function. By subscribing to the SSR Support Subscription, investors will not have to consult an attorney for localized California forms, as they are provided through the support subscription at a far, far lower cost than it would take to have another attorney do it for you. The support system will add more content, value and community interaction with time; however, November will be dedicated to rolling out the California versions (and additionally required documents) of the FAFF sample forms, which will mostly all also be available to SSR and SREC member subscribers. Act today by starting your monthly subscription and building your California document library to use for making deals now. Go to the Subscription page to sign up today.

Non-California Attorneys are welcome to contact Ron Ballard of RESI to consult about localization for your State. The resulting forms may then become available through RESI with reference back to the consulting attorney for non-California support services. In short, there may be an opportunity for investors to save legal fees and non-California attorneys to generate additional income by teaming up with RESI.

(Original) SSR Introduction (July 2009)

The first support subscription RESI is excited to offer is for members of the "Short Sales Riches" (SSR) program offered by Nathan Jurewicz and Chris McLaughlin of the Loss Mitigation Training Institute LLC.

So what will you get? The SSR support system will grow to include California specific legal document forms, articles and videos; practical business tips; current topics and alerts; special member benefits; and, likely an advance level of membership and benefits; all as listed below.

How fast will you get the content? About one item/topic listed below will be rolled out about every other week (a few more at the beginning due to pent up needs).

What do you need to do?  Subscribe and tell your friends and colleagues to subscribe. We'll add some "viral" tools to the web site soon, but for now, just use the old fashioned way of sending your own email, text message or phone call to increase membership so content can be delivered faster.

Here's the Expected Content (to be revised per needs and demands):

Legal Documents and Articles or Videos

  • Naming your company(ies); using "d.b.a." and nominees
  • A better Borrower's Authorization to Release Information
  • A concise (2-3 page) explanation of the A-B-C short sale process to introduce it to real estate brokers and help them understand it is legal
  • Handling Broker's questions and objections about fiduciary duty to A vs. B
  • The 10 or more most Frequently Asked Questions, with answers
  • Taking the Affidavit of Understanding seriously and adjusting it for an investor-buyer who holds a real estate license
  • The Option Addendum to the CAR NOD PA form and how to use it
  • Which CAR forms do you use and not use?
  • How the (non-)Listing Agent sets up the commission relationship with distressed Seller
  • How a Listing Agents handles the Withdrawal from Listing Agreement, or, alternately honors an assignment of rights to the "B" investor purchaser. Pros & cons.
  • Extra language to add to the MLS comments, etc.
  • Extra language for the B-to-C purchase transaction
  • How many hats can you safely wear? (Buying agent? Selling agent? Investor? Negotiator? Etc.)
  • Establishing agreements with "finders" or "bird dogs"
  • Establishing commission agreements, calculations and splits between the A-to-B and B-to-C transactions
  • Sensitive issues in presenting information in the short sale package (esp. a "listing agreement" when there technically isn't one)
  • Handling A's lender's restrictions on transfers (B of A #10 and similar)
  • Staying clear of Section 1695 Home Equity Purchaser Law
  • Staying clear of Section 2945 Foreclosure Consultant Law
  • Documents when B needs to step out to facilitate lender restrictions - and still make money
  • Understanding legal vs. illegal "flipping"
  • Understanding debt forgiveness income, form 1099 and how to safely explain them to sellers without practicing law or other liability traps
  • Understanding risk of deficiency liability and how to safely explain them to sellers without practicing law or other liability traps
  • Who can legally be paid for loss mitigation services? If the banks will pay . . .
  • Working with transactional funding sources
  • Documents for finding and using private money
  • Using non-funded closings when, and if, possible, to save funding costs
  • Cancelling a transaction if the Seller goes postal on you
  • Handling transactions when the seller might abandon the property and/or move away
  • Understanding California's licensing of "Private Fiduciaries" and how it affects the use of powers of attorney and trusts
  • When is a team member an independent contractor or an employee for income tax purposes?

    Practical Business Tips:

    • Maximizing tax deductions in your businesses
    • Does an out-of-state (i.e. Nevada) business entity make sense for you?
    • Understanding key differences between LLC's, S corporations, and C corporations
    • Protecting capital gains treatment if you flip properties and hold long-term
    • Establishing a business image without infringing other's
    • How doing loan modifications, or making loan modification referrals, can help or hurt your business. Who can legally handle loan mods in California? Who can charge an advance fee (plus pending legislation that might change the answers).
    • Choosing and "training" an escrow office
    • Choosing and "training" a title company
    • Finding and working with lenders for the C purchase - it's tough out there
    • Cheap and practical ways to establish separate identities for your entities and "d.b.a"s
    • Cheap and practical ways to handle web site and Internet issues
    • Creating an entrepreneurial mind set. How attitude and thoughts determine the height of your business
    • Using the Realeflow software service to make your business more productive, limit legal liability, and provide real time transactional status to your team members
    • How a seller's bankruptcy can hurt or help a short sale. Encouraging them to time it right.

      Current Topics and Alerts;

      • Lender's tricks and restrictions to deter "flipping"
      • Changing issues and requirements from different title companies
      • What's happening for real members "in the trenches"
      • Lender demands for seller's notes/contributions to non-recourse debts
      • What's not working for C lender seasoning issues? Differences for conventional vs. FHA
      • New legislation that could affect the business? Recommendations for political action.

        Special benefits and possible advance membership programs or products:

        • Subcribers receive an additional $25/hr. discount from hourly based services with Ballard Law Office.
        • General documents, such as the concise explanation of the process for broker review and the FAQ's (on a pick and choose basis; you don't necessarily pre-answer all objections) can be personalized from Ballard Law Office for RESI members who also become clients of Ballard Law Office.
        • Referral to preferred title, escrow, transactional funding, and end buyer lenders who understand the system, service your area, and want your business.
        • Ability to participate in test programs for creating solutions to seasoning and similar issues before they are released.
        • Preferred, early access to the FHA and conventional seasoning solutions when they are developed.
        • Provide master documents as form-fillable PDF documents; Realeflow automated forms; and/or customized to your business.
        • Assistance with creating presentations to brokers, etc.
        • Making deals work that inadvertently go to foreclosure
        • The Ultimate Liability Limiter: A California specific booklet (and/or DVD/webcast) that explains to Sellers their different choices, the option contract A-B-C method, and how the investor driven short sales model may work best for them. Will contain a sellers written acknowledgment to sign for your file.
        • Applying similar documents and concepts to an REO or foreclosure auction-based business