|Real Estate Information|
How to Negotiate a Successful Short Sale
Anyone who has ever profited from doing a short sale has also without a doubt had one or two rejected at some point. Guess what? It is just the nature of the beast?As with all types of sales; you're playing a numbers game.
There are very few investors who truly know how to successfully negotiate a Short Sale. We find that most investors have the perception that all that is necessary is to submit an offer and wait for the bank to give you an answer. If all goes well the offer will be accepted but in many cases it's not that simple.
That's why a strategic plan is necessary. "What do you mean?" You ask. A strategic plan means making the deal go your way by persuading the lender to agree with your offer.
There are several steps that will ensure your success when negotiating with lenders.
First of all, you must be able to determine if you indeed have a short sale opportunity on your hands. Many investors are under the misconception that every homeowner facing foreclosure is a good short sale candidate. This could not be any further from the truth. One of the most common mistakes made by investors is attempting to fit a square peg into a round hole. Not all deals are good short sale opportunities. You must know the difference between a good and a bad deal. Period! You'll have to analyze the deal and develop an excellent plan of attack if you want to truly master the art of the Short Sale.
Second, you must not take no for an answer. No can never be the final chapter to your negotiation. If the lender says no you must ask yourself why. There must be a reason. Why did they say no? Is there anyone else I can speak with? Was my offer to low? How does the lender determine their bottom dollar? What else can I do? What was the BPO amount? These are just a few of the questions that need to be addressed each time you are met with some resistance from the lender.
We'd like to share an awesome deal that one of our students closed recently. His name is Thomas Stockman.
Thomas got a call off of one of his signs from a gentleman that had two properties in foreclosure. The two properties were on the same street and were bought as rental homes within the last year. Consequently, they were also financed by the same mortgage company. One property had a mortgage balance of approximately $150,000 and was in need of several thousand dollars worth of repairs. The other had a mortgage balance of $156,000 and was currently being rented for $1,100 per month. Both properties had very little equity but the neighborhood had been very active over the last 9 months. After qualifying the two potential deals he decided to attempt short sales.
He contacted the bank and began the process. His offer on the first house was $89,900 and $95,800 on the second house. The bank rejected both and asked for higher offers. After several conversations and some additional documentation to justify his offer, Thomas was able to get both properties for a total of $60,000 below market value. Thomas rehabbed the first property for $3,500 and put it on the market for sale. Since the second property was already occupied by a tenant he decided to keep it. His mortgage is roughly $400 per month (interest only loan/taxes paid at year end) he makes $700 in monthly positive cash flow. Not bad for a beginner (wink).
This would have never happened if Thomas accepted NO from the bank. If he would have not known what pressure points to touch and how to counter without increasing the offer amount we would not be talking about these deals.
This type of outcome is customary when you are equipped with the necessary tools and know how to turn a "No" into a "Yes" just by slightly adjusting your approach. Thomas got two great properties with lots of equity and a constant cash flow, the homeowner avoided TWO foreclosures, and the bank was satisfied.
Remember, the next time you are putting together a short sale offer, be prepared and take control of the deal. Never take NO for an answer. Be proactive not reactive. Don't just submit offers without having a game plan. Do yourself a favor and take advantage of the opportunity to make lots of money in an industry where great deals are hard to come by. We hope that you have learned something and are on your way to much success.
D.C. Fowler, Real Estate Investor/Educator
Mr. Fowler has been a real estate investor for over 15 years specializing in the area of pre-foreclosure/short sale investing. He has bought and sold over 200 homes in Georgia, Florida, Louisiana, and Tennessee using the same short sale techniques that he teaches in his course, Making Money with Short Sales: The Complete Guide to Acquiring Property Pre-Foreclosure. Mr. Fowler currently resides in Atlanta Georgia. He also spends many hours per month teaching his creative real estate investing techniques to other aspiring investors across the country.
Associa Vice President Co-Hosts Real Estate Radio Show GlobeNewswire
Sold: Search the latest Macon County real estate transfers Herald & Review
Real Estate: Office still a question mark as industrial remains strong in 3Q - Fort Worth Business Press
Real Estate: Office still a question mark as industrial remains strong in 3Q Fort Worth Business Press
Tampa real estate overview msnNOW
Look who’s Arrived: Tech vets launch Seattle real estate startup to crowdfund rental home investing - GeekWire
Look who’s Arrived: Tech vets launch Seattle real estate startup to crowdfund rental home investing GeekWire
Dallas is 2020's top commercial real estate market The Dallas Morning News
Real Estate: Make These Moves in a Tight Market http://www.huntingtonNow.com
Houston-based real estate company Stewart posts bump in sales Houston Chronicle
Southern California real estate investor purchases one of San Jose's first skyscrapers - Silicon Valley - Silicon Valley Business Journal
Southern California real estate investor purchases one of San Jose's first skyscrapers - Silicon Valley Silicon Valley Business Journal
Historic downtown San Jose tower is bought by veteran real estate firm Marin Independent Journal
Commonwealth relocates a court from Cambridge to Woburn—again Boston Real Estate Times
4Q will be commercial real estate's big reveal, M&T says American Banker
Real Estate Sales Breaking Records, With Leelanau Leading The Way Traverse City Ticker
Second Wave: What Real Estate Can Expect if NYC Goes Through Another Lockdown Commercial Observer
XIN: Xinyuan Real Estate, a developer of large-scale residential projects in China, benefits from China's growing economy and positive demographic trends - Zacks Small Cap Research
XIN: Xinyuan Real Estate, a developer of large-scale residential projects in China, benefits from China's growing economy and positive demographic trends Zacks Small Cap Research
New Suburbanites Fuel Rising Winnetka Luxury Real Estate Market Winnetka, IL Patch
Real estate broker confidence plunges to another record low, REBNY says Crain's New York Business
Real Estate Minute – 10-22-2020 KFDX - Texomashomepage.com
Prominent real estate agency names new chief marketing officer Business Observer
Cautious movement in U.S. commercial real estate Mortgage Professional America
Commercial real estate appraiser urges lenders, landlords to work with tenants to keep them in place - KITV Honolulu
Commercial real estate appraiser urges lenders, landlords to work with tenants to keep them in place KITV Honolulu
Fast 50 — No. 38: Linville Team Partners, Winston-Salem, real estate brokerage - Triad Business Journal
Fast 50 — No. 38: Linville Team Partners, Winston-Salem, real estate brokerage Triad Business Journal
Real Estate Transfers For Oct. 15-21 The Chattanoogan
Real estate transactions: Nearly 20 Houston buildings sell in separate portfolio transactions - Houston Chronicle
Real estate transactions: Nearly 20 Houston buildings sell in separate portfolio transactions Houston Chronicle
Memphis industrial commercial real estate market awash in construction, both build-to-suit and speculative. - Memphis Business Journal
Memphis industrial commercial real estate market awash in construction, both build-to-suit and speculative. Memphis Business Journal
Martha's Vineyard News | Recent Real Estate Transactions: Week Ending Oct. 16 - The Vineyard Gazette - Martha's Vineyard News
Martha's Vineyard News | Recent Real Estate Transactions: Week Ending Oct. 16 The Vineyard Gazette - Martha's Vineyard News
Karla Murtaugh Local Real Estate Market Report: 358 Homes Sold in 2020 Outpacing 2019 by 39% - HamletHub
Karla Murtaugh Local Real Estate Market Report: 358 Homes Sold in 2020 Outpacing 2019 by 39% HamletHub
Ohio Police & Fire nabs Oaktree for real estate Pensions & Investments
Suddenly, the Hartford area’s real estate market is red hot; home sales are third highest in nation - Hartford Courant
Suddenly, the Hartford area’s real estate market is red hot; home sales are third highest in nation Hartford Courant
'We Were Moving Money': Real Estate Lawyers Describe Surprising Boon of 2020 | Connecticut Law Tribune - Law.com
'We Were Moving Money': Real Estate Lawyers Describe Surprising Boon of 2020 | Connecticut Law Tribune Law.com
Asana Partners & Capital Real Estate Group Repositioning Original Coca-Cola Bottling Co. Building for Single-Tenant Office - PRNewswire
Asana Partners & Capital Real Estate Group Repositioning Original Coca-Cola Bottling Co. Building for Single-Tenant Office PRNewswire
Seeley-Swan real estate - What just happened? Seeley Swan Pathfinder
See how the Spring, Klein real estate market fared in August 2020 Community Impact Newspaper
Fifth Third makes second investment in Cleveland real estate firm Cincinnati Business Courier
Fast 50 — No. 46: GEMCAP Development LLC, Winston-Salem, real estate Triad Business Journal
Oak Hill Advisors Announces Appointment Of Matt Borstein To Lead The Firm's Real Estate Investment Activities - PRNewswire
Oak Hill Advisors Announces Appointment Of Matt Borstein To Lead The Firm's Real Estate Investment Activities PRNewswire
Real Estate Transactions 10-22-2020 St. Charles Herald Guide
CRE - California Commercial Real Estate News ConnectCRE
REBNY presents PropTech Challenge at Connected Virtual Tech Event Connected Real Estate Magazine
Recent Commercial Real Estate Transactions The New York Times
Haute Residence Real Estate Network Continues Partnership With Blue Zone Realty International - Yahoo Finance
Haute Residence Real Estate Network Continues Partnership With Blue Zone Realty International Yahoo Finance
Public Record: Coshocton County Real Estate Transfers Coshocton Tribune
How to Buy Real Estate by Paying the Back Taxes Motley Fool
North Jersey poised to become one of U.S.'s hottest real estate markets in 2021, survey says - NJ.com
How savvy investors leverage mineral rights to diversify their real estate portfolio - Houston Business Journal
How savvy investors leverage mineral rights to diversify their real estate portfolio Houston Business Journal
Real Estate Review Friday, October 23, 2020 Davis Enterprise
Chicago ranks 44th in annual 'Emerging Trends' real estate survey Crain's Chicago Business
Whoever Wins the Presidential Election, It Won't Upend Commercial Real Estate Returns - Commercial Observer
Whoever Wins the Presidential Election, It Won't Upend Commercial Real Estate Returns Commercial Observer
Amazon, Rexnord building openings boost local 3Q real estate performance - Milwaukee Business Journal
Amazon, Rexnord building openings boost local 3Q real estate performance Milwaukee Business Journal
COVID-19: Real Estate - A 50-State Guide to COVID-19 Property Policies and Regulations - October 2020 #3 - JD Supra
COVID-19: Real Estate - A 50-State Guide to COVID-19 Property Policies and Regulations - October 2020 #3 JD Supra
Uber Founder Turns Real-Estate Mogul for Ghost Kitchen Startup The Wall Street Journal
Welcome to Real Estate Friday! theberkshireedge.com
Darien and Rowayton Real Estate Report: Oct 15 to 22 darienite.com
Local investors acquire Highland Park apartment community Birmingham Business Journal
New York City real estate leaders talk about what they want in the next New York City mayor - Crain's New York Business
New York City real estate leaders talk about what they want in the next New York City mayor Crain's New York Business
Is medical real estate immune to COVID? Modern Healthcare
Some Real Estate Investors Are Putting More Money in One Basket The New York Times
Travis Kalanick cooks up a real estate empire The Real Deal
3rd quarter Ferndale real estate market summary My Ferndale News
Adaptive Reuse is the Future of Commercial Real Estate Commercial Observer
Martha's Vineyard News | September Real Estate Sales Shattered Records - The Vineyard Gazette - Martha's Vineyard News
Martha's Vineyard News | September Real Estate Sales Shattered Records The Vineyard Gazette - Martha's Vineyard News
Home Not Selling In Todays Hot Market? Tips and Ideas to Help You Sell
So, your selling your home. Prepare yourself both physically and mentally for the agony of the endless phone calls and interruptions to your daily schedule.
Dramatic Profits From Preconstruction Real Estate Investing
The preconstruction process is an innovative real estate investment opportunity in which you buy tomorrow's property at today's price. Preconstruction investing is a boon for the investor or buyer as well as the developer or builder.
Afford A Dream Home In Belize
Shopping for property in Belize is not as simple an undertaking as you might initially expect!Firstly, real estate agents as we know them are non existent! Real estate brokers that do exist are likely to be unlicensed, unregulated and certainly not trained or insured.Secondly, the majority (and I mean the majority) of property for sale is not advertised!But with property prices remaining affordable, the quality of property available attractive, the climate beautiful, the people welcoming, the quality of life incredible and the opportunities in Belize plentiful, more and more people need to know HOW they can go about procuring themselves their dream home in Belize.
How to Show & Sell Your California Home
Seller's Showing Instructions1. When the agent arrives with the potential buyers, have the window coverings open to let in as much sunlight as possible.
Burn, Baby, Burn!
Luxury homes are lots of fun to inspect. Sure, the pay is better too, but mostly it's just fun to see how the other half lives! I also get to meet those people who have reached such a level of financial success that they are buying a home that seems like it could have been a boarding school!One of the fun aspects of inspecting large and expensive homes is seeing furnishing and interior design work at the highest level.
Title Insurance - Examples of Problems and Advice
What is title insurance and why should any buyer get it when purchasing a home (single family, townhouse, condo, apartment, or whatever format your home purchase takes)? Doesn't the attorney or settlement company handling the closing see to it that you have a clear title? Isn't this just another way for someone to siphon a few coins off a real estate transaction?Title InsuranceTitle insurance prevents the property owner from suffering financial loss if, at any time during his ownership of the property, someone comes along who can show that they have full, or partial, ownership of the property instead. Every mortgage lender I'm aware of requires title insurance be purchased to cover the amount of the mortgage.
Investing In Commercial Property
Why commercial property?Compared to residential property investments, commercial property offers some key advantages:Long-term secure cashflow -- Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited.
The Pros and Cons Of Hiring A Real Estate Lawyer
You're travelling in a foreign country and you get arrested for something that you didn't even know was against the law. The potential fine is huge, more than you earn in 10 years.
Property Investing - Port Melbourne Life on the Edge
Property investing prices pick up following a cooler winter last year. Susannah Petty Reports.
Subdividing - But NOT Land!
Many people are familiar with the concept of sub-dividing a large piece of property into smaller lots. The same concept can be very profitable in other areas.
Probate & Obituary Marketing
I start my marketing with obituaries followed with probate filings and find it just another effective way to acquire property.Short of courthouse research you can go to your local library and go to the reference department and research using what is called a Polk City directory that will list if the deceased party owns real estate.
FSBO - Selling Your Home FSBO (for sale by owner) - Is It Worth It?
FSBO, what is it? FSBO means For Sale by Owner, and it's a term that's generally referred to when you're selling your home without soliciting help from a Realtor.FSBO, what's the benefit to you? You'll save thousands of dollars in commissions if you sell your home this way.
Home Inspectors: 5 Tips to Choosing the Right One
Choosing the wrong Home Inspector can cost you a lot more than the fee you paid. If you choose a home inspector solely on price alone, your headed down a dangerous highway.
Tax Deferred Exchanges of Investment and Business Real Estate
The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034 exception is gone.
Searching the Hawaii Property Listings
Maui is an island so full of life and vivacity (perhapsbecause of the fact that it was formed millions of yearsago by the eruption of two volcanoes) as well as beingmixed with the enticing calm that you can only experiencewhen you are near the sea. Sounds enticing? All of thesedreams can become a reality by simply searching the HawaiiProperty Listings and making the move.
Questions To Ask The Landlord Before Renting His Apartment
Apartment hunting is not the easiest thing around. You may find places not suited to your tastes or those which do are not to your budget.
FSBO - How to Prepare Your House to Sell
Did you hear that? Prices of houses in Phoenix have been jumping 5% each month for 2005 according to market experts! Some even predict that the price of housing could jump an additional 10% for the upcoming year. The shortage of houses for sales and the still relatively low interest prices are causing the price of homes not just here in Phoenix but nationwide to escalate.
The Devine Secrets Of The Ya Ya Lease Purchase Hood
The biggest secret of conducting a successful lease purchase business is to have a plan. I know don't grown.
Ten Steps for Becoming a Successful Real Estate Investor
The secret to success in real estate investment is finding bargain properties that you can "flip" quickly for a profit. Here are a few ideas for becoming a successful investor:1) Obtain sound advice from investors who are already successful.
Attention To Details Helps Homeowners Sell Fast In A Buyers Market
Your boss has just given you the career opportunity of a lifetime, but the job is in another state.Soon you discover that moving your family to another city may be one of life's hardest tasks.
|home | site map|
|© 2006 TIGER MEDIA|