Short Sale Buying Extravaganza Educational Webinar

Naples, Florida

Carlos Cachon

239-298-1991

www.carloscachon.com

ccachon@earthlink.net

What is a Short Sale?What is a Short Sale?

A short sale is when a seller’s lender A short sale is when a seller’s lender accepts a discounted payoff to release accepts a discounted payoff to release an existing mortgage.an existing mortgage.

Instead of buying from a seller, you Instead of buying from a seller, you are purchasing the property directly are purchasing the property directly from the lender.from the lender.

Benefits to SellerBenefits to Seller

Avoid foreclosureAvoid foreclosure Release from debt*Release from debt* Saves creditSaves credit Credit scoreCredit score Waiting period before buying againWaiting period before buying again

*As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise in any legal or tax ramifications.

Benefits to Bank/LenderBenefits to Bank/Lender

Frees up reservesFrees up reserves Avoids expenses involved with Avoids expenses involved with

foreclosureforeclosure Unloads unwanted propertiesUnloads unwanted properties

– Foreclosures look bad on their business Foreclosures look bad on their business portfolioportfolio

Benefits to BuyerBenefits to Buyer

Motivated seller / Property in good Motivated seller / Property in good conditioncondition

Buy property below market valueBuy property below market value– Desirable areas and locationDesirable areas and location– Excellent schoolsExcellent schools

Instant equity Instant equity

Qualifications of a short Qualifications of a short salesale Seller must be late on mortgageSeller must be late on mortgage Not in foreclosureNot in foreclosure Seller must be in hardshipSeller must be in hardship Seller owes more then the property is Seller owes more then the property is

worthworth Seller will walk away with no moneySeller will walk away with no money

Short sale packageShort sale package

Authorization to releaseAuthorization to release Seller’s hardship letterSeller’s hardship letter Supporting financial information (Seller)Supporting financial information (Seller) Supporting hardship information (Seller)Supporting hardship information (Seller) Repair estimates for the propertyRepair estimates for the property Comps for the propertyComps for the property Must be listed on the marketMust be listed on the market Sales contract (as-is with right to inspection)Sales contract (as-is with right to inspection) Pre-qualification letter for buyerPre-qualification letter for buyer Preliminary net sheet (HUD-1)Preliminary net sheet (HUD-1)

Summary of short sale Summary of short sale purchasepurchase

1.1. Register to purchaseRegister to purchase2.2. Get pre-qualifiedGet pre-qualified3.3. Pick a property from the short sale listPick a property from the short sale list4.4. Offer & contract*Offer & contract*5.5. Send package to Loss Mitigation Dept.Send package to Loss Mitigation Dept.6.6. Deal with “Broker’s price opinion” (BPO)Deal with “Broker’s price opinion” (BPO)7.7. Close the deal (ready to close in 30 days)Close the deal (ready to close in 30 days)

*All contracts are contingent on bank approval. You do not have a deal until the lender accepts.

Naples, FloridaNaples, Florida

•Median residential sold price as of June ’07 is $388,409

•Average residential sold price as of June ’07 is $720,500

•No city or state tax

•Low property tax $12.45/$1000, US average $13.28/$1000

•Naples per Capita income $62,891, US average $24,020

•Naples Median household income $73,667, US average $44,684

Population & Job Population & Job growthgrowth

•Collier County population 296,678

•2nd fastest growing area of US from 1990 to 2000

•93% of increase came from other areas of the country

•Unemployment 2.7%, FL 3.4%, US 4.5%

•The labor force in Collier County has grown 34% in past 5 years

•Florida has had 57 months of consecutive job growth

•From 5/06 to 5/07 Florida created 126,000 nonagricultural jobs

Ave MariaAve Maria UniversityUniversity

•First major Catholic University in the country in over 40 years

•Town of Ave Maria, first to be developed with University

•Modeled after Princeton University

•Ave Maria community totals 5,000 acres, 20% for the University

•Town will have public and private schools

•Ave Maria will house about 30,000 residents

•Opens Fall 2007

Short Sale #1Short Sale #1$229,250$229,250

•Purchased 2/13/06 for $327,000

•3BR/2BA/2CG

•1.14 acres

•Year built 1999

•Living area 1354 sq. ft.

•Total area 1754 sq. ft.

•Rent range $1300-$1600 month

•Located 5 minutes from Ave Maria

Short sale Short sale #2#2

$$299,900299,900

•Purchased 9/12/05 for $395,000

•3BR/2BA/2CG

•Year built 2002

•Living area 1455 sq. ft

•Total area 2296 sq. ft.

•Rent range $1400-$1700

ReservationsReservations

Carlos Cachon

Email: ccachon@remax.net

Phone: 239-298-1991

Toll Free: 866-708-6962

Short Sale Buying Extravaganza

Location: Hyatt Regency Orange County

Date: September 15, 2007

Time: 9am – 3pm

Email: ayuen@marshallreddickseminars.com