Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.
As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.
Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.
With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.
Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.
As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.
With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.
Comments
I thought I would write a few things that I would counter or add based on your blog.
In the option contracts that I have worked with, the contract is very clear about the investor trying to sell it at higher price. In fact, in Georgia, the attorney require disclosure to the banks about the eventual flip that is taking place.
I don't think "THE LIE" takes place there. I think the LIE is that this is an INVESTOR making an offer when clearly ANYONE could do this. Transactional funding is based on the deal not on the investor. In fact, the term investor implies some sort of "strategy" - they are simply capitalizing on the banks and market's inability to do anything with these homes.
The rest of the discussion talks about the lie of omission. A few things here too.
THE CLIENT IS THE SELLER, NOT THE BANK.
1. My job as an agent is to do the best job for my client. In a short sale market, a low offer is more advantageous for the seller than a high one initially. After all, if the short sale gets approved at a lower number it's easy to go back to the bank with more money.
2. We all know that the two problems with short sales are dealing with the bank's buearcracy and the buyer's patience level. Ultimately, having a low offer initially, insures that my client will have a fighting chance (as long as the offer is not too low)
So where's the problems?
You have to know the investor, that's a must. If they aren't willing to walk away to let the deal close, then you could harm your seller by introducing them. Most problems occur when "option investors" are holding on for margin's sake and you have a closable buyer right there. That's not good for your seller.
Letting the Option Investor gain equitable interest in the property. This is a tough one. They are taught to do this and it protects them and makes the deals easier in the long run, but if they do this it's nearly impossible to get rid of them unless they voluntarily back out. See the point above.
The other lie is having an offer and marketing the property before it's actually, legally the "investors." This one is semantics and could differ from state to state. It's no different than Assigning contracts in my opinion.
Frankly, option contracts are nothing new. Assignments and land trusts have been doing this for years.
Finally, my take on option contracts comes from working with them and without them in the trenches of short sales. I don't have any active REOs and I do have regular clients but most of my 30 listings right now are short sales. Option contracts should be your last option to stop a foreclosure. I think that's their useful place. Everything else can be accomplished by hiring a closing coordinator or ex-loan officer that does not mind getting paid at closing to do the negotiations, which is pretty simple yet time consuming once the full package is in.
http://www.brokeragentsocial.com/article.php?article_id=332
Remember that the banks are not stupid. They sell bulk REO packages on a regular basis as well. And they know the investors are going to resell the properties, not hold on to them.
I neither condemn nor push this method. But while I can see how it could be abused I also see that it could be a tool that benefits all the parties. Do your due diligence and decide from there.
My humble opinion, of course.
These scam artists are trying to bypass normal "legal" methods and procedures to defraud people. And if you knowingly or unknowingly get involved, YOU can be held liable in civil and criminal court! It's a lot like a shell game and where the pea is hidden. There is a lot of movement and hiding to try can cover up stuff that is not on the up and up. They make it sound like a win-win situation for everyone, but the only one who wins is the scam artist in the end.
Jesse was not trying to accuse anyone of doing this, but make everyone aware of the situation. Real Estate agents all over this Country are being caught up in this scam and some are being charged with this fraud. You can argue with Jesse or me all day long as to how you "think" this is legal, our legal system says otherwise. And guess who's going to win that argument? Ignorance of the law is not an excuse in the eyes of the court.
Everyone needs to be aware of this scam and be prepared. Not stop thinking of the high points of the process and look at the details. It may keep you out of jail!
I only use options in very few short sale situations, my structure of choice in a short sale is a beneficiary directed trust. Using options it is difficult to sell to FHA buyers because of the 90 day rule, I know there are many people who will say they got an FHA loan to fund on an option, I have too, but on average underwriting has an issue with it. But, you could not be more wrong on who the thief is, and that amazes me.
As for who is a thief, lets look at the facts, buyer A and seller enter a contract, before closing another buyer B comes along offers 50% more money to seller...Seller tells A "sorry I just got offered 50% more by B so I am going to tear up this contract and accepting the one that is %50 more."
Who was just stolen from? And who is the thief? If you get one of these answers right you are a keen Realtor, if you get both right you should sit for the state Bar.
Notice how much the property is encumbered has nothing to do with the ability to contract to sale and who stole from whom.
Having said that, the agent can only present the contract the seller wants presented. AND, in the short sales I've done, the banks are not asking for statements from the sellers and agents involved that it was the highest and best offer received, or outlining what offers - if any - were received. Honestly, the banks are falling down on the jobs here. They are not consistently asking for statements that the property is being sold to a third party. They are not asking if there is a relationship between the principal and the agent. They are not asking if the buyer will be selling the property back to the seller in the future, or allowing the seller to continue to live at the property. The banks are falling down on the job here. Although I may morally agree with you, it is not actual fraud.
Besides, this investor flipping you're talking about (a consumer asked a question about buying from an investor and doing back to back closings) - would this not be a problem for the lender of the 2nd buyer?
I haven't dealt in these "yucky" transactions - I prefer to keep my nose clean, even if I make a little less money. For a long time, I've had the strict rule that I will not go to hell for something I did for a buck on this Earth.
Thanks for opening this dialog.