SHORT SALES


Idaho
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Connect Idaho

Real Estate Opportunity
“The Short Sale”
by Bill Kasten,
Broker Idaho Real Estate Connection

The residential investment market in Idaho has been flat and I have been recommending against
buying. Times are changing. The pre foreclosure or “Short Sale” market is heating up.

These are going to be some of the best buys on the market and for an investor who can hold 18-24 months
or for anyone looking for a great buy to occupy and the appreciation should be excellent. These
properties can be purchased at 60%-70% of the market value. A simple 5% increase in a year could mean a
45%-50% return. For the investors out there, given the shortage of single family rentals in the area,
this should translate to a higher rent and minimal vacancy.

What is a Short Sale? A short sale is nothing more then a lender discounting a mortgage rather then
foreclosing. However they don’t call it a discount, they call it a short sale. Why do banks do short
sales? With the current estimated 15%-20% of homes nationwide facing foreclosure due to the Sub-prime
mortgage fallout, teaser rate loans, interest only loans and more, the lenders will usually lose money
foreclosing on a property. Banks with a large inventory of foreclosed property are limited to the
amount of new loans they can make. Banks want money not houses.

You may ask, why not go to an auction and buy a property in foreclosure. Four reasons, it must be
all cash, there is no inspection, you do not get to do a title search to see what other liens may
precede the mortgage you are bidding on and you don’t know at the auction if you are bidding on a
first or second mortgage and the trustee won’t tell you until after the bidding. None of these are
issues with a short sale.

I have 6 years experience as a Realtor and have personally done over 200 short sales. I head up a
team in our agency comprised of former business people that brings a unique level of professionalism
and we affiliated with a group out of Phoenix that has done over 2000 short sales. We do commercial,
residential and development real estate. I personally have been in the top 10% of sales in the
country for 5 years. My prior 30 year corporate America career was as quality control superintendent
in a GM plant in the Mid West, and a corporate acquisitions consultant with the former Morrison
Knudsen in Boise. My previous experience has been invaluable when it comes to negotiating with the
lenders.

We have two goals with these “short sales”. Our first goal is to try to help the seller avoid
foreclosure and salvage their credit. We have had success in doing that and have helped about 25% of
our clients keep their homes through negotiating with the banks or having an investor buy their home
and do a lease purchase back to the original seller. This can help a seller potentially keep some of
their equity. The second goal is to assist investors in finding the best opportunities on the
market today. I think the repeat business we get is a testimonial to the way our investors feel about
the job we do.

If you are interested in receiving our spread sheets on these amazing buys please contact me via
email or phone. The first spread sheet contains “Short Sales” listed on the Multiple Listing Service
which I have broken into Ada & Canyon Counties and the second spread sheets contain the foreclosed
properties in Ada and Canyon Counties .These are potentially good of buys as the lenders continue to
accumulate inventories of foreclosed homes they can’t sell. I’ve taken the MLS spread sheet and
added Recommended Offer, Trustee Sale Date where known, Tax Assessed Value and Last Sold Date and>
Price where relevant. To all interested I will continue to update my spreadsheets on a daily or
weekly basis as required. “Shorts Sales” do take more time to close than traditional sales and they
can be financed. We’ve actually seen where the banks will pay the buyers closing costs. They
traditionally do not accept an offer contingent upon sale of a house or other property but that
too may change.

I look forward to your inquiries and the opportunity to work with you and remember, there is
no obligation or cost to you as a buyer. * I only ask that if you use my sheet and information that I
get the opportunity to represent you with the purchase.

Bill Kasten
208-866-0769
208-461-3434
condyn1@aol.com