 |
"How to Find That Quality Tenant" Only
$19.95
Learn More |
Teaching Landlords to Find Their Quality Tenant! |
|
A little About Short Salesby Bert Cox Hello Fellow Investors, Opportunities and challenges continue to abound in the investor world. Foreclosures are up and short sales are through the roof. A “short sale” simply means that a house is sold for less than what’s owed and the lender accepts a payoff less than or “short” of a full payoff. Lenders would rather get a full payoff but most lenders prefer NOT to foreclose or take back the property. Personally, I like to combine short sales and round robin auctions; its become a good combination for me. Short sales do not always work, take a lot of time, require quite a bit of paperwork from both you AND the seller. Banks need convincing that the short sale is their best option and the sellers ONLY option. There are also multiple ways to structure a short sale – simultaneous closing, commission, negotiation fee, etc. Fortunately, after you do a few it’s easier to automate, you know what to expect, and you get a sense of which lenders are easier to work with; I’m on a first name basis with the loss mitigator at AMC and Option One. It would be bold to say they like me, but they like the fact that my sales close quickly when we reach agreement. So how does an investor learn to do short sales? I learned by doing. I’m still doing and I’m still learning. Several gurus offer courses or you can team up with someone with more experience. As a minimum, I strongly recommend you attend the NHREIA one day seminar with Dwan and Bill Twyford. Dwan will share her considerable experience on short sales and most likely offer the chance to take her comprehensive course. Bill Twyford will speak about negotiation and language skills. For example, I avoid asking a seller. “ How much do you want for your house?” because if you ask this question, this way, the answer will most likely be just a number – not very helpful or with any context. Instead, I usually ask, “ What do you want to get out of your house?” An open ended question that usually generates a much more informative answer – I just want to get out from under my mortgage; I want the appraised value; I just want to move; or I just want to avoid foreclosure, etc. If the seller does just give a number, it is immediately followed up with, “And how did you arrive at that figure?” Usually followed with, “And how far behind is the mortgage?” The answers to this question sequence will reveal their motivation, establish value, and position me to formulate options to assist them in their real estate dilemma as opposed to the alternative – the seller just throwing out some number as an initial negotiating gambit. The questions you ask and how they are framed can make all the difference in whether someone chooses to do business with you or not. Contact me (or any of the board members) if you have questions on short sales, auctions or negotiation. Bert Cox has over 20 years real estate experience, is President of the New Hampshire Real Estate Investors Association, an investor and auctioneer with 1House.com, an agent with Exit 1st Realty and a mortgage broker with NLC. He can be reached at 603-225-8000 or by email at Bert@BertCox.com. Copyright © 2006 Bert Cox. All rights reserved. courtesy of http://www.findthatqualitytenant.com Read more landlording and real estate investment articles _______________ I am not a lawyer, therefore, if you have any legal concerns with anything in this article, please contact the appropriate legal counsel.. Thank You. Don Conrad Copyright 2006 Blue Collar Publishers
|
|
|||||||||||||||
| © 2006-2008 Blue Collar Publishers |