Short Sales

Archive for the 'Short Sales' Category

Oct 20 2008

What You Should Know About Short Sales

Posted by: reipro, in Short Sales

When you are getting started as a real estate investor, one of the things that you are going to want to think about very carefully is the option for short sales. As a real estate investor in an area where the foreclosure rate is fairly high, short sales are going to open the door to your profits.

The reason why short sales can be so lucrative is simple: a short sale is the process of buying a property from the bank at less than the amount owed and market value in order to save the lender and the home owner to avoid foreclosure.

Why would mortgage lenders make the choice to offer a short sale? The answer is simple: the banks don’t make money from owning properties and foreclosure itself costs them even more. In other words, what you’re going to find is that when you have the right real estate and banking contacts, you are going to be able to save a great deal and to take advantage of a lower price - something that can have a profoundly positive impact on your profit margin. By learning more about short sales and getting the right support, you’ll be able to see for yourself how easy it can be.

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Jul 16 2008

Short Sales: Getting Involved in the Process

Posted by: reipro, in Short Sales

When you’re looking at building wealth and your future with real estate investing, one great option that’s markedly popular right now is getting involved with short sales. Of course, just as is the case with all real estate investing businesses, there is a learning curve when it comes to short sales.

There’s plenty of information out there, and most of it aims toward to the same point:

(source)Short sale real estate investing has gathered momentum over the past year due to the high number of homeowners defaulting on their mortgage payments. In such cases, you can pick up a property from the lender at a discounted rate if the homeowner is unable to meet the mortgage payments. These deals are quite different from your normal sale-purchase deals and hence you will need to build up the right contacts and sharpen your negotiation skills in order to succeed.

It’s true: short sales are increasingly common - however that doesn’t mean that getting involved in the process is altogether easier. Those who are looking into short sales as the foundation of their investment business need to be sure that they are able to negotiate deals and to make contact with the right people.

Getting started with short sales can be a fantastic option however, and when you are able to find a great mentor, you’ll find that it’s a lot easier to determine who you will need to talk with and what approach to take. Simply put, the right real estate investing mentor can ensure that when you get involved in short sales, you’re ready to succeed.

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Jul 02 2008

Short Sales: The Benefits of Having an Agent on Your Side

Posted by: reipro, in Short Sales

It’s interesting the way that the real estate market has been going lately; but it does work to a real estate investor’s advantage - especially when those investors have the right partners on their side. When it comes to investing in short sales as a way to generate wealth in real estate, you just might find that the right partners aren’t just those whom you have connected with at the banks, but also real estate agents:

(source) . . .it’s why some real estate agents are learning the ins and outs of “short sales”.

“The agents that I know that are specializing in this are doing great business. Unfortunately,” said Brad Anderson, a mortgage broker who helps a lot of agents negotiate short sales with banks.

Simply put, you just might find that when you are looking into investing with short sales that it helps to have connections with those who have connections. When real estate agents are adept at negotiating short sales with the bank and they’re willing to work with you, you’ll find that it’s easier to make the investments that will help you to reach your goals.

Having the right partnerships in any business is the key: whether or not your business is real estate investment, whether or not you’re looking into short sales, you’ll find that your best bet is to make and take advantage of your connections.

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Jun 17 2008

Short Sales Take Preparation and Commitment

Posted by: reipro, in Short Sales

The following is not a particularly uncommon sentiment when it comes to real estate investors and the first impressions that they have when they read about or talk with their mentors about short sales:

(source)When I first heard the word “short sale” at the beginning of my real estate career, I mistakenly thought it meant the sale was going to be fast. Actually a short sale means the lender will accept *less* for the home than what is owed in the current mortgage, so they’ll be short the loan payoff.

While it is possible to build great relationships with mortgage lenders within your community and while it is possible to know the best real estate professionals to work with when you want to invest in a short sale property, the reality is simple: when it comes to making a short sale, your relationships are going to be the difference in whether or not the banks are willing to take a loss.

Simply put, no one likes losing money - not even the banks. Short sales necessarily mean that they are not going to be repaid for the difference even though it means not having to foreclose on and take ownership of a property. Therefore, it is essential that you are preparing the best possible offer and that you are making every conceivable effort to negotiate the deal.

When you stay on top of the process - and especially when you have strong relationships with the lenders involved - you’ll find that the short sale process is very rewarding. However, don’t expect to just jump in and have everything go well with no effort; short sales just don’t work that way.

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Jun 14 2008

Preparing for Short Sales

Posted by: reipro, in Short Sales

When you’re thinking about getting started in real estate investing, chances are good that you’ll hear a lot about short sales - buying a property for less than the value of its mortgage to help a homeowner to prevent foreclosure. After all, short sales can be a great way to save when you’re buying a property, but not everything that you’ll find on the topic of short sales is good news:

(source)“The waiting is torture,” said Mark Shandrow, a Keller Williams Realty agent in Long Beach who specializes in such transactions. “The banks are overwhelmed with short-sale requests, and some make sellers wait five months for an answer.” That answer, in many cases, he added, is “no.”

Yet despite the obstacles to successful short sales — lenders holding the first and second mortgages don’t agree on the terms, buyers often ditch the deal midstream or banks nix the agreement just before escrow closes — they’re on the rise.

While the above is certainly true - at least in some markets and to some extent - there’s a lot more to it than that. For example, when you want to succeed in short sale investing, you’ll find that you are able to find options that do simplify matters some - options like building great relationships at the bank and even with some real estate agents. Similarly, you’ll find that when you are working with the right mentor you can pick up some insider tips that can help you along the way.

In other words, you’ll find that you’re able to do a lot to ensure that the short sale transactions that you choose to pursue are successful; you just need to be willing to take the right steps.

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Jun 13 2008

Doing a Short Sale Before Default?

Posted by: Michelle Odessey, in Foreclosures, Short Sales

Hello Michelle,

My wife (as a real estate agent) got a listing to sell a one family house who can longer afford the monthly payments although the homeowner is current on her monthly payments on her payments. The homeowner is also upside down. The value is $105,000 and the mortgage is $116,000.

We were thinking about doing a short sale ( as we have a buyer who is interested to buy a lower price) but I thought it would appropriate and ethical to contact the Loss mitigation and try to work out a loan modification as the homeowener wants to stay in her home with a lower affordable monthly payment. She was getting assistance from her daughter but that has stopped. She cannot afford the payments with her only income. The daughter is not on the note. I had mentioned that my wife is a real estate agent and I am a part time real estate investor.

We live in Pa. I would be preparing the documents necessary to send to the bank. Would attempting a loan modification (considering that she is current on her mortgage payments) the correct thing to do? Do you think the bank will modify the note under these conditions? Should we send the documents as you discussed in your May 8 Coaching calls.
Al Castro, New ForeclosureMillionaireClub.com member .

__________________________________

Albert, I’ll get right to it!

If she is current on her payments – loss mitigation doesn’t even know about her. Why would they do a loan mod if she is current.

A Loan Modification is when the bank agrees that:

(more…)

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Jun 08 2008

Short Sales Are a Great Way to Get into Real Estate Investment - if You Know How to Take Advantage of Them

Posted by: reipro, in Short Sales

The basics of short sales are pretty simple:

(source)Short sale investing involves buying a piece of property from a lender for an amount less than the balance owed on the property. Basically, there are two types of short sale realty investments. The first type refers to when you purchase a property, foreclosed by a lender listed with a realtor. In this type, you simply offer the lender, who has now become the owner on record, less than what is owed on the property. In this case, you can offer less than the balance that was due on the foreclosure. Such a short sale, realty investment calls for a good relationship with the realtor. The other type involves negotiating directly with the lender of a motivated seller.

When you’re thinking about taking advantage of short sales as a foundation of your real estate investment, you’re going to find that you are definitely working with motivated sellers. After all, banks are in the business of lending money, not in the business of owning homes; that definitely adds to their motivation to unload the property quickly - even if it’s for less than the value of the property.

However, just as the above excerpt about short sales suggested, the real trick to investing in short sales is building great relationships and then in using those relationships to your advantage. By making an effort to get to know mortgage lenders in your area, you will find that you are able to work with them to get great deals on properties that interest you; likewise, when you know the real estate agents that they work with, you will find that you are able to get a jump on short sale availabilities - at least once in a while.

When you are able to build solid relationships and you are able to take advantage of them, you’ll find that it’s easy to succeed in short sale real estate investment.

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Jun 02 2008

Getting the Most Out of the Short Sale Process

Posted by: reipro, in Short Sales

When you’re looking into real estate investing as an opportunity to generate wealth, one thing that you may find yourself looking into involves short sales:

(source)Short sale investing involves buying a piece of property from a lender for an amount less than the balance owed on the property. Basically, there are two types of short sale realty investments. The first type refers to when you purchase a property, foreclosed by a lender listed with a realtor. In this type, you simply offer the lender, who has now become the owner on record, less than what is owed on the property. In this case, you can offer less than the balance that was due on the foreclosure. Such a short sale, realty investment calls for a good relationship with the realtor. The other type involves negotiating directly with the lender of a motivated seller. It is essential to be determined in the negotiation process, mainly in reaching the right person at the lender Real Estate Owned (REO) department and then to get the price of your choice.

Whether you are looking at short sales that involve buying from the lender or short sales that are negotiated with a real estate investment, there’s one thing that is an absolute must for a real estate investor: establishing relationships. When you are able to network and to get to know those people who can help you to grow your business, you will find that it is a lot easier to achieve the success that you are looking for.

While relationships are the most important component of short sales success, there are a few other key elements that you’ll want to focus on as well. First, there’s the research: you need to be sure that you are able to find properties with potential. Then there’s the ability to determine whether or not a particular short sale investment will help you to reach your goals.

Short sales can be great investments - a great opportunity to generate wealth with real estate. It’s all a matter of making sure you are looking at the big picture and are focused on moving forward.

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May 16 2008

Assigning Options - When do you do it?

Posted by: Michelle Odessey, in Options, Simultaneous Closings, Mentoring, Wholesaling Real Estate, How To Sell Properties, How To Buy Properties, Short Sales

Hi Michelle,
I absolutely admire what you are doing here for the ForeclosureMillionaireClub.com members with an unbelievable amount of patience and I want to use this extraordinary information source in this industry to it’s fullest extent.

I listened to your several sessions and I will continue to do it in any available time, but I also want your information to transfer into a productive activity. Because I want to start to using

Q. At what stage of Short Sale process can the investor, using an Option Contract, assign it to a buyer?

Thank you again for the opportunity to be here in the club.
Josef Schneider.

Josef,
Thank you SO MUCH for your feedback. When I read emails like this it makes me want to do even more.

Answers.
You can do it an any time in the process, BUT, if we stick to our discussion that we had about using Options it would go like this:
1) You have a ready buyer in the wings
a) You find the deal (the property)
b) Get the docs completed with the seller: purchase & sale, option, etc.
c) Negotiate your short sale (if you are doing a short sale)
d) Set the closing date with the bank.
e) Set the closing date with your buyer and explain your requirements for when he/she has to have the funds to your closing attorney
f) Assign the option on closing day.

2) You have the deal (the property)
a) Get the docs completed with the seller: purchase & sale, option, etc
b) You find your buyer
c) Negotiate your short sale (if you are doing a short sale)
d) Set the closing date with the bank.
e) Set the closing date with your buyer and explain your requirements for when he/she has to have the funds to your closing attorney
f) Assign the option on closing day.

3) You can assign the option prior to closing - assigning it to a buyer WHO WILL CLOSE and not leave the Seller hanging. Meaning they will come through. AND if there is a short sale to be negotiated - that they will do it.

If this is what you choose to do - you really need to be sure that you don’t assign it to someone who will “flake off”. Even though they have given you $ for assigning the option to them, be sure about them, because if something, or all of it drops through the cracks - the seller is only going to remember your name.

Hope this helps!
Best,
Michelle
michelle@investorwealth.com
770-338-2797 10a-5p Eastern M-F

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May 01 2008

Assistant That Pays Their Own Salary

Posted by: Michelle Odessey, in Business Automation, Virtual Office, Virtual Assistants, Replays, Success, How To Buy Properties, Property Management, How To Sell Properties, Marketing, Short Sales

Are You Taking Your Business to the Next Level?

Are you Doing it Without a Staff or a ‘Trained Assistant’?

Are You Mad! ?

What would it be like to have a ‘REAL’ Real-Estate Assistant?

To run your errands, make your calls, run your marketing campaign, find your deals, sell your houses, and even more.

What would it be like to Have The Time To Raise Private Money, Grow Your Business Through Networking – and Enjoy All The Family And Personal Time You Want.

When you watch the replay of this webinar - you will learn what you need to do to have this in your business.

Just click the image of the video and it will open a new video window.

Grab the opportunity to Have Your Life Back Now!

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Real Estate Investing Blog

Archive for the 'Short Sales' Category

What You Should Know About Short Sales

Short Sales: Getting Involved in the Process

Short Sales: The Benefits of Having an Agent on Your Side

Short Sales Take Preparation and Commitment

Preparing for Short Sales

Doing a Short Sale Before Default?

Short Sales Are a Great Way to Get into Real Estate Investment - if You Know How to Take Advantage of Them

Getting the Most Out of the Short Sale Process

Assigning Options - When do you do it?

Assistant That Pays Their Own Salary

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