Verifying the Loan and Creating Jumping Loan Offers


Description

In this lesson, I’ll show you exactly what happens after you’ve verified the seller’s information and received the Third-Party Authorization to Release Information. We’ll contact the lender to confirm the real numbers — including what’s needed to bring the loan current — and get it in writing with a firm deadline. I’ll show you how I run repair estimates, calculate “Pay Me First” numbers, and use those figures to write up solid Jumping Loan offers that work for both you and the seller. You’ll learn why every deal needs written proof from the lender, how to handle catch-up payments and repair budgets, and how to make an offer that gives the seller incentive to move while still meeting your cash flow goals.


Key Takeaways

  • Always get written confirmation from the lender showing the exact dollar amount needed to make the loan current — including escrow, fees, and late charges.

  • That confirmation must include a deadline date and time — otherwise, added fees can appear if the loan moves into foreclosure.

  • Use your Mini P.I.S.S. Card to document every repair, payment, and expense.

  • Run your Pay Me First formula: Rent – Taxes – Insurance – Repairs = Max Debt Service.

  • Verify your cash flow target (e.g., $500/month) and make sure the loan payment fits under that limit.

  • The seller usually gets a small amount of cash ($2,000–$3,000) to move out — this keeps deals smooth.

  • Expect sellers to understate how many payments they’re behind — always double-check with the lender.

  • Prepare two versions of the offer (your ideal and a slightly higher backup) to give flexibility if the seller negotiates.

  • Every number must make sense before you meet the seller at the closing table.


Action Steps / Exercises

  1. Lender Contact Practice: Using a sample property, write out the exact questions you’d ask a lender to verify loan details and past-due amounts.

  2. Deadline Drill: Practice writing a sample lender email confirmation including a firm date and time the reinstatement amount is valid through.

  3. Repair Estimation: Walk through a local property listing and estimate what it would cost to make it rent-ready (paint, flooring, landscaping, etc.).

  4. Pay Me First Calculation: Use your own target cash flow and the provided formula to determine the maximum debt service you can afford.

  5. Offer Worksheet: Using your numbers, create two sample offers — one baseline and one slightly higher — including repairs, reinstatement, and seller cash.