Why Short Sale Discounts are Growing & The Best Banks for BargainsThe discounts on distress sales are critical for investors. Discounts− the price differences between “normal,” full value properties and a distress sales like foreclosures or short sales−set the parameters for capital gains when a property is sold, especially in markets with modest price appreciation. All things being equal, the greater the discount the greater the potential gain.Discounts for foreclosures versus … [Read more...]
Housing Update: Distressed Sales Hang Tough
May 23, 2012 By Leave a Comment
Housing Update: Distressed Sales Hang ToughAnnouncements that a recovery is underway are not paying attention to the huge piece of the home sales pie belonging to foreclosures and short sales. Distressed market share is not diminishing in the middle of the spring sales season and it is the first time in two years when prices are rising in a majority of markets.Improving prices are supposed to inspire sellers to act, but if they are, then there is a rush of distressed properties pouting into … [Read more...]
Four Flippin’ Boxes Bootcamp: BiggerPockets REI Summit Preview
March 22, 2012 By Leave a Comment
This is how our business works. Keith sat across from me at his desk and drew four boxes on a piece of white notebook paper. Inside each box he wrote:AcquisitionRehabSalesRaising CapitalKeith explained that in order for his fix and business to operate efficiently, and profitably, he had to have someone dedicated to each box. In the beginning, it was just him and his business partner so they split the four.However, as their company grew they hired staff to help out with all of the boxes – … [Read more...]
Real Estate Negotiation : Don’t Bid Against Yourself!
March 2, 2012 By 1 Comment
Real Estate Negotiation : Don’t Bid Against Yourself!I find the “art” of negotiating especially in Real Estate Investing, to be a truly fascinating experience, and find myself often times spending as much time assisting investors to learn the business as I do helping them to understand effective and execute negotiating techniques.The fact is negotiating is something we do everyday. From our personal relationships (negotiating whats for dinner), to raising our children (when can they … [Read more...]
Building a Pipeline of Short Sales
February 10, 2012 By Leave a Comment
Building a Pipeline of Short SalesAny investor or homebuyer that has worked through a short sale in the last year knows what a lengthy process this can be. I actually bought a new personal residence in 2011 and it took 8 months for the bank to finally approve our offer. Of course, this was after multiple denials and re-offers, appraisals, inspections, etc. Because the process took all of 8 months, we eventually resolved that the bank wasn’t going to approve the offer and had mentally … [Read more...]
The Evolution of Short Sales
February 8, 2012 By Leave a Comment
The Evolution of Short SalesWhen I was first invited to write for BiggerPockets, I was told that I had editorial freedom—but I should keep to my all-time favorite subject, short sales. Between the BiggerPockets Blog and my other gigs, I think that I have probably written about 2000 articles about short sales. I also calculate that sometime in 2012, I will reach 1000 short sale closings in five years. That’s right, my team and I will have processed and negotiated 1000 short sales before this … [Read more...]
Pre-Approved Short Sales: Are They Real?
January 24, 2012 By Leave a Comment
Pre-Approved Short Sales: Are They Real?Rumors, just like viruses, spread like wildfire. One of the biggest topics that goes through the rumor mill seems to be the subject of the pre-approved short sale.Is there some such a thing as a pre-approved short sale? - a short sale whereby the seller calls the bank and the bank agrees to a short sale price and terms in no time flat?In short, the answer is no and maybe. Often times, pre-approved means that the bank now rules the roost. The bank can … [Read more...]
Doing A Short Sale?
January 6, 2012 By Leave a Comment
Doing a Short Sale, Wholesale Deal, Seller Financing or Buying/Selling a Lease Option or Rental? The most important player on your team should be the Title Company. They can make or break a deal.What is a Title Company?The title company is a very important part of the process for any real estate closing. A title [...]Investor Important Team Partner – The Title Company is a post from: Real Estate Investing Blog For Real Estate Investors.Read the full post here... … [Read more...]
Short Sale Agents Can Be Your BFF
December 27, 2011 By Leave a Comment
I’ve been known to say that I am much more popular now, as a short sale aficionado, than I ever was in high school, thus proving that short sale agents can be your bff, best friend for ever. I’m not vain, and I realize that right now, I actually have something that lots of people want—information about and experience in the distressed property arena.This morning I caught an article on the Internet entitled “Three Reasons Why A Short Sale Agent Should Be Your Best Friend.”, … [Read more...]
What is your Real Estate Acquisition Strategy with Property Foreclosures
November 4, 2011 By Leave a Comment
What is your Real Estate Acquisition Strategy with Foreclosures?Trustee’s sale (foreclosure auction)REO (real estate owned or bank/lender owned)Short Sale I’ve used other acquisition strategies in the past – wholesale, probate, assignment, normal. My all-encompassing real estate acquisition strategy is PURCHASE ANY HOUSE THAT MEETS MY PREDEFINED BUYING CRITERIA. If it’s a deal, it’s a deal. It’s not important how I bought the house, or from whom. It really shouldn’t matter … [Read more...]
Improve Sales & Customer Satisfaction
October 31, 2011 By Leave a Comment
Improve Sales & Customer SatisfactionReal Estate Marketing, Is less more? Have you ever heard of the jam problem? For those of you who are as in the dark as I was, this has nothing to do with the rising prices of Smucker’s to mirror our peanut butter shortage. Instead, it refers to a psychological understanding of choice and how people will behave in different scenarios, whether you are following this advice for your real estate marketing efforts or any other industry.Although we may … [Read more...]
Closing a Short Sale Successfully
October 27, 2011 By Leave a Comment
Closing a Short Sale SuccessfullyAll of the pieces of the short sale process, when handled well, will result in a successful short sale closing. The first step in the process is the most important, and that step includes pre-qualifying the seller. No jokes here. Just like getting a loan pre-qualification or pre-approval for a home buyer before the purchase of a home, you absolutely must pre-qualify your seller in order to assure that the potential short sale transaction will net a positive … [Read more...]
Searching for Wholesale Deals Online
October 27, 2011 By Leave a Comment
Searching for Wholesale Deals OnlineJust saw this press release from Econohomes.com come through the wire. You can find investment deals for free. It lists foreclosures across the country and allows you to search by property type, price and location. There’s even a heat map of where they have the most listings.Econohomes buys the properties from mortgage lenders and servicers and resells them on their site. When you look at the site, you’ll see the prices are low – some priced in the … [Read more...]
Strategies On How to Negotiate the Right Way!
October 27, 2011 By Leave a Comment
Strategies On How to Negotiate the Right Way?Whether you’re starting as a wholesaler, negotiating short sales or working on a master lease option, a core REI skill is negotiation. You have to be dogged in your approach to get deals done, but there’s a right way and a wrong way to negotiate deals – regardless of your area of focus. In this article, we’ll talk about how to negotiate the right way.1. Always know your numbers. Knowing all your numbers (top price you’ll pay, percentage … [Read more...]
Tough Questions To Ask In REI Negotiation
October 27, 2011 By Leave a Comment
Tough Questions To Ask In REI NegotiationSome tips for asking the tough questions the right way in REI Negotiations. There’s a right way and a wrong way to ask questions in negotiation, especially in real estate negotiation. You’re going to have the upper hand when you ask questions the right way and win more deals in the negotiation game.Ask leading questions. In this scenario you probably know about where the other party stands on the issue in question. However, you need to get them to … [Read more...]
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Learn from My Mistake: Why You MUST Understand Your Seller’s Needs
Learn from My Mistake: Why You MUST Understand Your Seller’s Needs Several weeks ago, I wrote an article about a deal I had to give up on because the bank wasn’t playing ball — it was called “Swing and a Miss.”The gist of that story is that I was trying to duplicate my deal of the year from 2011 in 2012 by buying the apartment build next door to my original 2011 purchase. In the story, I had to give up because I wasn’t able to structure the deal in the same fashion.Shortly after … [Read more...]