Let's do some Real Estate math...
Nearly 1 in 4 (approx. 10.7 million) households have negative equity (A.K.A they're underwater)
- Wall Street Journal
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"We typically expect a 10 to 15 percent decrease of loss severity with a short sale"
- Dave Sunlin, Senior VP, Foreclosure and Real Estate Management, Bank of America.
(Translation: the bank loses less with a Short Sale than a Foreclosure)
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U.S. Treasure Department guidelines effective April, 2010: requires lenders to consider borrowers for a short sale on their primary residence 30 days after missing two consecutive payments on a modified loan OR after the borrower requests a short sale
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Short Sale Bonanza
It's true - since the peak in July, 2006, values nationwide have retreated more than 30%. In some of the hardest hit areas - well over 50%.
Lenders lend money. Servicers collect money. They both own pieces of paper - legal documents. Amidst their cubicle farms and data centers they never made space for landlords, property managers and property sales agents - a full scale REO department - to manage defaulted-on collateral.
The Carrot and The Stick
When the mortgage payments stopped, lenders foreclosed. (They're not exactly out-of-the-box thinkers.) That hasn't worked out so well for them. Starting last year, they started going "Short Sale" route more frequently... Short Sales nearly tripled year-over-year in the first half of 2009.
Fact is - as BofA has acknowledged - they lose less when they opt for a Short Sale instead of foreclosure.
Profit is always a good incentive for a banker.
As of April, 2010, they'll also be "incentivised" by the Treasury Department. They're now REQUIRED to consider the Short Sale option for certain defaulting borrowers.
Just because it's obvious...
No one is denying the big problem with under-water mortgages and defaulting borrowers. And the Short Sale solution is often the best option. So you'd think lenders would make it easy.
NOPE.
But that's the good news...
You see, lenders make it so obtuse, byzantine and slow for the average home owner and Realtor, that few are successful. Just ask any Realtor who has tried to do a few Short Sales. It's like being water boarded to them.
There's Profit In The Solution To A BIG Painful Problem...
HUGE Profit In Fact
Here's the deal...
I have 3 interviews with seasoned pro's in the Short Sale niche. They each have their business running like a smooth, perfectly oiled machine. And what's so sweet (and surprising) is they don't personally deal with those bureaucratic lenders.
And, as they will show you, it can all be done with:
No Cash
No Credit
No Personal Risk
Pull up an ear, access life changing know-how...
There's Profit In The Solution To A BIG Painful Problem...
HUGE Profit In Fact
Short Sale Pro #1: Investor, Author, Coach
Josh Cantwell is a Real Estate Investor, author and coach. He transitioned out of the corporate world into the Real Estate Investing world and strategically chose Short Sales as his niche back in 2003. He's in the Cleveland area which was quicker than the rest of the nation to spiral into defaults.
He saw the writing on the wall and chose the Short Sale niche as a great way to profit from the change in market conditions. Josh has done over 500 Short Sale transactions.
Josh coaches you on...
- Your one and only main responsibility is...
- 4 ways to find deals and why this way is the best
- Track this
- Bet you never used direct mail like this
- Here are the 4 objections a home owner will have AND exactly how to overcome them
- This is the most critical part of the process
- How to tie up the property
- Here's what the lender is thinking
- Here's how to out-think the lender and get the best deal
- The disclosure you need for a same day close A-to-B, B-to-C
- Why you shouldn't sell to FHA buyers
- 3 types of neighborhoods and which are the best buyers for each
- Key players your need on your team
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Short Sale Pro #2: Part-Timer
Nathan Jurewicz had a J-O-B and didn't offer much resistance when his friend dragged him to a Real Estate seminar. He was hooked. He started rehabbing in the Tampa area when the market was on the incline and put on the brakes when the market started stalling. He changed gears to Short Sales.
He closes 5-10 transactions a month - working part-time - "without talking to a buyer, seller, or banker or looking at a house". Oh yea, he's still in his 20's.
Nathan reveals:
- How to do the whole transaction for $10
- Know these numbers before submitting an offer
- Use these 4 documents and you'll be totally protected and on the up-and-up
- Wait until this happens before you make an offer
- Why you should focus on one geographical area
- What critical players you need on your team and where to easily find them
- Put this phrase in the MLS listing to bring in the buyers
- Why we won't touch this kind of property
- Kind of homeowners we run away from
- How we train Realtors to work with us AND how to close home owners
- Do NOT name your company anything like this, name it this way
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Short Sale Pro #3: From Entrepreneur U
Cory Boatright left High School for an entrepreneur education. After a few successes he set his sites on "making it" in Real Estate. He started Bird-dogging it, moved on to assigning, then wholesaling and ultimately really dug in with Short Sales.
He's a speaker, author, trainer, radio show host and consultant. He and his wife own a national loss mitigation company.
Cory schools you on:
- Read this book. Then read it again
- Why you want to work at splitting your profits to grow them
- This is what you tell Realtors to get them on your team
- This is how you get home owners to commit to you
- The script you train your Realtors to use with home owners
- How to find the key players for your team
- What Cory does for half day every week
- The person with the most influence over the deal
- Get your leads from the two places
- You want to target these kind of properties (and there are lots of them)
- Why you shouldn't negotiate with the bank
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