Posts Tagged “Investing”
Nov
28
2011
 
Maryland Real Estate Investing Short Sales - What And Why Is There A Short Sale PackagePosted by Usual in Short Sales, tags: Estate, Investing, Maryland, Package, Real, Sale, Sales, Short, there
Nov
16
2011
Maryland Real Estate Investing Short Sales - How To Handle Several Deals At The Same TimePosted by Usual in Short Sales, tags: Deals, Estate, handle, Investing, Maryland, Real, Sales, Same, Several, Short, time
Jun
11
2011
Pre-foreclosure Investing — Putting Together the Short Sale PackagePosted by Usual in Lender Approved Short Sales, tags: Investing, Package, Preforeclosure, putting, Sale, Short, TogetherPre-foreclosure Investing — Putting Together the Short Sale Package Why Submit Articles? 0 && $.browser.msie ) { Register Email Home Page > Business > Pre-foreclosure Investing — Putting Together the Short Sale Package Pre-foreclosure Investing — Putting Together the Short Sale Package Posted: Feb 29, 2008 |Comments: 0 ]]> When you work with the homeowner to put together short sale negotiations with the bank, you’ll also be assembling vital evidence in a short sale package. This package is very important in preforeclosure deals. It provides enough information to (hopefully) convince the bank to accept your short sale offer on the homeowner’s property.
Include everything you can in the short sale package that backs up your request for a short sale. Obviously, you’ll want to leave out extra evidence, (unless the bank specifically requests it), that may hurt your claim.
Common Items in a Short Sale Package:
Standard Purchase and Sales Agreement & Escrow Instruction
This is the standard sales contract between you and the homeowner, since you will actually be purchasing the property from the homeowner with the bank’s approval.
Authorization To Release Information
In order to get the bank to work with you, the homeowner need’s to sign this document stating that they authorize their lender, the bank, to share all vital information concerning their mortgage with you. If you don’t have this the bank won’t talk to you!
Letter Of Agreement and Addendum
This is the cover your butt document stating that you will work with the homeowner and the bank to stop the foreclosure, but you can’t guarantee that the bank will agree to stop the foreclosure during short sale negotiations with you. Warranty Deed To Trustee You’ll need to get a notary to authenticate this document. It basically shows who owns the property you are attempting to purchase. Agreement and Declaration Of Trust In order to keep your own name off of public records you’ll use this document to declare a land trust on the property, which you’ll have rights too. Letter That Trustee is Making Payments: This letter is used when you have an agreement with the homeowner that indicates you’ll be taking the property “subject to” and notifies the lender that payments will be coming from a trustee. Escrow Letter You’ll use this letter to tell the bank to apply funds in an escrow account to the loan balance when the loan is paid in full and the short sale deal is complete. Be aware there is no guarantee the bank will comply with the instructions for your real estate investment. They may send the escrow proceeds to the original borrower, which is the homeowner. So, you’ll need to make arrangements with the homeowner just in case this happens. Special Power of Attorney You’ll get this signed by the homeowner in front of a notary. It applies only to the property and lets you make decisions concerning the property if something happens to it before the short sale deal closes. Residential Real Estate Disclosure This is basically to protect everyone involved. You’ll sign it as the purchaser. It discloses any defects in the property and prevents anyone from claiming after the deal is completed that they weren’t aware of certain defects in the property. Hardship Letter This is a very important letter in pre-foreclosure investing. The hardship letter allows the homeowners to explain in detail all of the reasons they were unable to make payments on their mortgage and why they’ll be unable to completely pay off the mortgage. A good hardship letter can really help you seal the deal. Financial Statement This is basically the homeowner’s pay stubs, copies of their past income tax returns and other items that show the homeowners really are in financial hardship. The bank will absolutely want to see this proof of hardship before discounting a loan and taking a known loss. Suggested Extras to Seal the Deal! There are a few extra pieces of foreclosure information you can include in your short sale package to get the bank’s attention in this preforeclosure deal. Cover Letter The cover letter helps your short sale package stand out. It basically states who you are as an investor and that you are requesting a short sale. It also states why the bank should take the short sale. You can also summarize the major points of your package in this cover letter for the bank officer reading it. Proposed Closing Statement (HUD1) Eventually you’ll find that a bank requests the HUD1form. It shows all the fees and payments that will be made to the parties involved in the short sale. It helps them know their bottom line on the deal at a glance. Plus, it ensures the seller is not receiving any compensation. Opinion Of Value This can be a professional estimate or your own statement. You’ll back it up with a quick list of all the negative points of the property, its needed repairs and the lowest comparable sales in the area. Estimate Of Repairs If this property in pre-foreclosure needs repairs make sure you get estimates for all of them and include those estimates in your short sale package to back up your discounted price. Use the highest priced estimates you get. Notice Of Trustee’s Sale This is the notice that the homeowner receives telling them that their property is going to the foreclosure sale. By including this document in your short sale package you are letting the bank know that you are aware of the foreclosure process. It also helps put a timeframe on the deal and can light a fire under them, so to speak. Color Photos You’ll get extra points with the bank by sending them pictures of the damaged and neglected areas of the house. They provide photographic evidence of the low market value of the property and encourages the bank to accept your discounted offer.
The short sale package usually contains quite a lot of foreclosure information. In fact, it’s an involved process and essential part of debt negotiation with the bank. The bank will want ample evidence to back up your short sale request for their loss mitigation department as can be seen by the bulleted list. This package contains information that the bank requests from you and your own research on the property including; damage estimates and the homeowner’s hardship letter, all of which work to back up your request for a discounted sale price on the property. Retrieved from “http://www.articlesbase.com/business-articles/preforeclosure-investing-putting-together-the-short-sale-package-345711.html” (ArticlesBase SC #345711) Watch your traffic increase just by submitting articles with us, click here to get started. Colin Egbert - Colin Egbert is CEO & Co-Founder of http://www.realestateinvestor.com/, the online leader for real estate investing education and networking. Additionally, he established http://shortsaleinvesting.org/, the #1 provider of full-service debt negotiation services for successful short sale investors. ]]> Ask our experts your Business related questions here… 200 Characters left I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me Rate this Article vote(s) 0) { Article Tags: Latest Business Articles
short sale timing, buying a short sale, foreclosure timing. (03:58)
Short Sale Secrets Clip 2
Learn how to sell a home in a short sale in this video from experienced realtors and mortgage brokers. (02:54)
Learn what foreclose means and what you can do to get back on track -Learn about Short Sale? (00:42)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04) Investing in Foreclosures — Why Do Short Sales? Foreclosures are one of the biggest ways to cash in on real estate investing. But what about short sales? What are they and how can they help you? Colin Egbert discusses the ins and outs of short sales to cash in on your real estate short sale. By: Mortgage Foreclosure Investing Not Working? Go With Tax-Delinquent Property Instead If you’re hoping to get your start in real estate investing, one of the first places you probably looked was mortgage foreclosures. You probably contacted (or tried to, anyway) owners of properties who were about to lose their homes due to non-payment of their mortgage. If you were lucky enough… By: Finance> Pre Foreclosure Listings Houston Let’s countenance it, foreclosure information is public domain. That measures that real estate investors can right to use this information any time they feel like, nationwide, with a little determination. The trouble is, the foreclosure properties investors are actually searching for, are not that trouble-free to unearth or contrast to one another. That is where foreclosure listings in Houston Texas move toward to your help, serving you locate foreclosure investment opportunities tha… By: Business> Ohio Foreclosures and How They Work Ohio foreclosures basically have the same foreclosure rules just like most other states. If you plan to relocate or purchase an investment property in Ohio, then you may want to know the basic Ohio foreclosures regulations and proceedings. By: Finance> Before that the property is foreclosed, the bank provides the homeowner a grace period, and is called preforeclosure. When the owner is behind on payments or if they have always managed to pay their debt, the bank begins foreclosure, but because the owner still has the option to sell the property immediately before the auction closes By: Business> Healthcare Data Analysis Through Specialized Tools One of the major shifts in the surgical and healthcare sector of late has been the detailed exploration and analysis of Healthcare Data with the help of advanced tools. There has always been a growing concern of accountability in the sector with such sensitive surgical procedures being performed on a regular basis By: The Advantages of Professional Water Damage Restoration Almost every household across America has, at some point of time, required water damage restoration. Broomall itself has many residents who have faced this situation. However, the intensity of the problem differs. While some may have to deal with a broken faucet, others may have to encounter a flooded basement or even worse. The problem with water damage is that you cannot get rid of it by yourself. If you try, you might end up doing some permanent damage to your house in the process. … By: Why Should Water Cleanup Be Done By Experts Only? In addition to causing immediate cosmetic damages to the building and property, water damage also causes adverse structural problems to the building and health hazards to its residents. If moisture is left to retain onto the structures for more than 48 hours, it will lead to severe damages. Immediate water cleanup can prevent damages like swelling of the masonry structures and rusting of the metallic ones of the house. However, mildew formation is the most dangerous problem that most h… By: Electric Repair for Homes in Fishers Electrical systems and plumbing, though they are different, can be considered parallel to each other. They are parallel in the sense of their working mechanisms. Water makes its passage into your home through pipes and electricity through wires. To keep them working properly you need to maintain them from time to time and get it repaired when required. Whenever you see problems in the wiring of any electrical appliances, you need to have electric repair. Fishers, IN has got many well t… By: Electric Repair: Choosing the Best Damage to the electrical wiring of your house can occur at any point of time and you need to know who to call up to get it fixed. While this may seem like an easy task you need to be very careful while choosing an electrical contractor. When it comes to electric repair, Carmel residents only trust only a few contractors. This way they ensure that the service they receive is nothing short of the best. Many people try to take matters into their own hands and fix what they think is a sim… By: Short Sale Negotiation: Preforeclosure Phone Calls With the Homeowner A really nice article with short sale tips and how to do your best with your short sale negotiation, focusing especially on preforeclosure phone calls with the homeowner. By: Business> Investing in Foreclosures — Why Do Short Sales? Foreclosures are one of the biggest ways to cash in on real estate investing. But what about short sales? What are they and how can they help you? Colin Egbert discusses the ins and outs of short sales to cash in on your real estate short sale. By: Short Sale Negotiation – Tips For Pre-Foreclosure Investing A really nice article with short sale tips and how to do your best with your short sale negotiation. By: Add new Comment Your Name: * Your Email: Comment Body: *
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Author Navigation My Home Colin Egbert has 4 articles online Articles Categories Advertising Agriculture ]]> Need Help? Site Links Webmasters Business Info Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License. Colin Egbert is CEO & Co-Founder of http://www.realestateinvestor.com/, the online leader for real estate investing education and networking. Additionally, he established http://shortsaleinvesting.org/, the #1 provider of full-service debt negotiation services for successful short sale investors.
Jun
10
2011
Pre-foreclosure Investing: The Short Sale PackagePosted by Usual in Lender Approved Short Sales, tags: Investing, Package, Preforeclosure, Sale, ShortPre-foreclosure Investing: The Short Sale Package Why Submit Articles? 0 && $.browser.msie ) { Register Email Home Page > Finance > Real Estate > Pre-foreclosure Investing: The Short Sale Package Pre-foreclosure Investing: The Short Sale Package Posted: Apr 13, 2009 |Comments: 0 ]]>
You’ll be assembling vital evidence in a short sale package as part of your work with the homeowner to put together a short sale. In preforeclosure deals this package is very important. The short sale package provides enough information to convince the bank to accept your short sale offer on the homeowner’s property and get the homeowners out from the under the obligation.
In your request for a short sale you’ll want to include everything you can that backs up your request for a short sale. Obviously, leave out extra evidence that may hurt your claim, but don’t purposely hide the homeowner’s income or other necessary pieces of information. You really just want to show the homeowner’s life at its worst and the house at its worst.
What’s in a Short Sale Package?
Authorization to Release Information: The homeowner needs to sign this document stating that they authorize their lender, the bank, to share all vital information concerning their mortgage with you. The bank won’t talk to you if you don’t have this!
Letter of Agreement and Addendum: This document states that you will work with the homeowner and the bank to stop the foreclosure, but you can’t guarantee that the bank will agree to stop the foreclosure during short sale negotiations with you. Don’t ever forget this document and make sure you point this possibility out to the homeowners when working them.
Warranty Deed to Trustee: This basically shows who owns the property you are attempting to purchase. You’ll need to get a notary to authenticate this document.
Standard Purchase and Sales Agreement & Escrow Instruction: This is the standard sales contract between you and the homeowner, since you will actually be purchasing the property from the homeowner with the bank’s approval.
Agreement and Declaration if Trust: Keep your name off of public records with this document which declares a land trust on the property. Trusts are getting harder to use in many areas. Ask a local pro as to how they deal with the title.
Financial Statement: These are the homeowner’s pay stubs, copies of their past income tax returns and other items that show the homeowners really are in financial hardship.
Hardship Letter: This is important in pre-foreclosure investing. The hardship letter allows the homeowners to explain in detail all of the reasons they were unable to make payments on their mortgage and why they’ll be unable to completely pay off the mortgage. A good hardship letter can really help you seal the deal.
Special Power of Attorney: When working in pre-foreclosure investing you’ll get this signed by the homeowner in front of a notary. It applies only to the property and lets you make decisions concerning the property if something happens to it before the short sale deal closes.
Letter That Trustee is making Payments: This letter indicates you’ll be taking the property “subject to” and notifies the lender that payments will be coming from a trustee.
Escrow Letter: This letter tells the bank to apply funds in an escrow account to the loan balance when the loan is paid in full and the short sale deal is complete.
Be aware there is no guarantee the bank will comply with the instructions for your real estate investment. They may send the escrow proceeds to the original borrower, which is the homeowner.
Residential Real Estate Disclosure: This is protects everyone involved in this pre-foreclosure investing project. It discloses any defects in the property and prevents anyone from claiming that they weren’t aware of certain defects in the property after the deal is completed.
Extra Pre-foreclosure Investing Documents
In addition, are a few extra documents you can include in your short sale package to get the bank’s attention in this pre-foreclosure investing deal.
Cover Letter: Make your short sale package stand out with a cover letter. It basically states who you are as an investor and that you are requesting a short sale and why the bank should take the short sale.
Opinion of Value: This is a professional estimate or your own statement from experience in pre-foreclosure investing. You’ll back it up with a quick list of all the negative points of the property, its needed repairs and the lowest comparable sales in the area.
Color Photos: Send the bank pictures of the damaged and neglected areas of the house. They provide photographic evidence of the low market value of the property and encourages the bank to accept your discounted offer.
Estimate of Repairs: Get estimates for all of the repairs needed on the house and include those estimates in your short sale package to back up your discounted price.
Proposed Closing Statement (HUD1): Eventually you’ll find that a bank requests the HUD1 form, so it’s a good idea to include this document anyway. It shows all the fees and payments that will be made to the parties involved in the short sale.
Notice of Trustee’s Sale: The homeowner receives this notice when their property is going to the foreclosure sale. You are letting the bank know that you are aware of the pre-foreclosure investing process by including this document in your short sale package.
Pre-foreclosure investing is an involved process, but when you properly complete the short sale package you’ll be one step closer to this essential part of debt negotiation with the bank. The short sale package contains information that the bank requests from you and your own research on the property to back up your request for a discounted sale price on the property. Retrieved from “http://www.articlesbase.com/real-estate-articles/preforeclosure-investing-the-short-sale-package-862747.html” (ArticlesBase SC #862747) Watch your traffic increase just by submitting articles with us, click here to get started. Colin Egbert - Colin Egbert is an experienced Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business. ]]> Ask our experts your Real Estate related questions here… 200 Characters left I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me Rate this Article vote(s) 0) { Article Tags: Latest Real Estate Articles
short sale timing, buying a short sale, foreclosure timing. (03:58)
Learn how to sell a home in a short sale in this video from experienced realtors and mortgage brokers. (02:54)
Short Sale Secrets Clip 2
Learn what foreclose means and what you can do to get back on track -Learn about Short Sale? (00:42)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04) Preforeclosure Marketing Strategies and Methods to Find those Clients! Preforeclosure marketing is a cinch with the right tactics and good information, such as the lis pendens list. To start, there are three points to preforeclosure marketing that are absolutely crucial to know, realize and implement as a part of your business. Many people in preforeclosure marketing talk about marketing to the list. Now that you have the list, there are many marketing strategies you can use. By: Finance> Pre Foreclosure Profits, Laws and Opportunities Typically home owners in looking for refinance pre foreclosure options may also be able to work through banks or lenders if they have a significant amount of equity built up in the home. In cases where the homes have no equity or negative equity, options will be very limited. By: Law> Improved Landscapes: Tips in Choosing Northville MI Apartments An improved landscape design is just one of the important details that most people who are into buying houses like apartments are looking at. Good thing that most Northville MI apartments are improving their landscape to attract more guests and potential renters in their place. By: Finance> Why Getting Apartments in Aurora, Il is a Great Idea Aspen Place in Aurora, Illinois is a great place to start living in your own home. It is an community which despite being urban maintains the peace of suburban living. By: Finance> Life at Denver is nothing where you can discover. We all know that Denver is the biggest and most populated city in Denver. By: Finance> The 3C New Projects-Where Construction is Under a Nature Friendly Way The 3C new projects are developed in a nature friendly and energy saving way. Today, there are a number of dream projects where construction is in full swing. By: Finance> Miami Commercial Real Estate – Avoid Mistake During Investing Miami commercial real estate investing is accompanied by risks. While you can control these risks, these risks often make investors unable to reach success. By: Finance> Real Estate Investment – 5 Changes in the 2008 Market Things are rapidly changing in real estate investment and smart, resourceful, pre-foreclosure investors will have their best year in 2008. Those investors who continue doing the ‘same old, same old’ hoping for the results they got three years ago, will perish. By: Finance> Short Sale – Delaying the Sheriff Sale Putting together a short sale package is time-consuming enough, but if you want to try and delay the foreclosure sale to give yourself more time you’ll find that this aspect of short sale investing is difficult indeed. By: Finance> Preforeclosure Marketing Strategies and Methods to Find those Clients! Preforeclosure marketing is a cinch with the right tactics and good information, such as the lis pendens list. To start, there are three points to preforeclosure marketing that are absolutely crucial to know, realize and implement as a part of your business. Many people in preforeclosure marketing talk about marketing to the list. Now that you have the list, there are many marketing strategies you can use. By: Finance> Home Appraisal - Determining The Home’S Value For A Short Sale Package One of the most important aspects of the short sale business is determining the value of the property you have under contract. It’s impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. By: Finance> Add new Comment Your Name: * Your Email: Comment Body: *
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Author Navigation My Home Colin Egbert has 8 articles online Articles Categories Advertising Accounting ]]> Need Help? Site Links Webmasters Business Info Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License. Colin Egbert is an experienced Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.
Feb
27
2011
Maryland Real Estate Investing Short Sales - Keys To Negotiating Short SalesPosted by Usual in Short Sales, tags: Estate, Investing, Keys, Maryland, Negotiating, Real, Sales, Short
Jan
24
2011
Short Sale Investing TipsPosted by Usual in Lender Approved Short Sales, tags: Investing, Sale, Short, TIPS
Jul
28
2010
A Guide On Short Sale Real Estate InvestingPosted by Usual in Short Sales, tags: Estate, Guide, Investing, Real, Sale, ShortShort sale is a very simple way. A short sale occurs when the sale proceeds of a house fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. The protections against abusive short selling are vital for issuer and share holder assurance and have endorsed prophylactic rules considered to curtail scheming behavior are held traditionally. It is one of the primary reasons for securities borrowing, without which, short selling would be impossible. Lenders have no interest in negotiation unless their payments are several months late. Another consideration is you may be held liable for taxes on the difference between the sale amount and the original loan amount. Short sales require nerves of steel. Including different costs and risks of shorting, as well as legal and institutional restrictions and allowing stocks to be overpriced are the constraints of short sale. Make a guide of expensive stock leading to consequent low returns. The portion of mortgage of higher price of a home provided buyer willing to buy the property when the lender agrees transpires short sale. The difficult purchaser real estate business deal to agree, involve as much, and no more paperwork than an original mortgage application. The seller already owns the item at the time of the short sale. Short sales of securities are not registered on an exchange and connections in securities covered by paragraph that are resulted in the OTC market. However, they are not subject to rule. These are also used in strategies of hedge a situation in another security or a linked economic utensil. Short sale in real estate is not always present transaction. Negotiating a lower price for a home than what is owned to the bank in a short sale of real estate. The sale of a house proceeds the fall short of the owner until owes the mortgage. To accept the proceeds of a short sale and forgive the rest of other. What is owned on the mortgage when the trader cannot make the credit payments. This is agreed by many lenders. The lender avoids a costly foreclosure and the owner can pay off the loan for less than they owes are made by recognizing a short sale. Short sales came into the view of credit report as “pre-foreclosure in redemption”, but not as “debt discharged due to foreclosure”. The difference between the amount owed and the amount paid will not legally pursue a borrower but the lender has no guarantee who accepts a short sale. This amount is known as deficiency in some states. The mortgage debt is fully discharged. The prices of stolen stock are minus commissions and expenses for purchasing the stock so the profit is the difference between the prices of the stock. The potential losses are unlimited when the prices of the shares increase. Nick Cifonie, a long-time real estate investor, speaker and mentor gives an explanation about wholesaling, retailing, subject-to real estate investing, rehabs, lease options and many other strategies. For more information, log on to the website http://www.REI-TV.com
Jul
02
2010
Due Diligence: an Essential Component of Your Apartment Investing PlanPosted by Usual in Licensing Real Estate Road Kill, tags: Apartment, Component, Diligence, Essential, Investing, plan“Get in,” I said to my younger brother Kevin (who was just 5 or 6 years old at the time) after we pulled his red wagon to the top of a long, steep road that ended in front of our house. “Use the handle to steer. Jason and I will push you down the hill until we can’t keep up. Just stay in the middle of the road and don’t hit the sidewalk.” It seemed like a good idea at the time. But I didn’t think about how to stop. I didn’t check the wheels to make sure they were secure. Nobody looked at the handle or the bolts that fastened the axle to the frame. I didn’t think about cars, rocks, or the trouble I’d be in after he crashed either. I didn’t have a plan. Instead, like any other kid, I focused on the initial activity to accomplish our goal: to have fun. Unfortunately, more often than not, this is true for real estate investors as well. Although we may define it differently, our goal is to still “have fun.” We’re all pursuing financial independence, working to acquire greater wealth for ourselves and our families. As investors, the plan is not as simple as checking the handlebar and wheels on a wagon. There are many moving pieces to consider. Effective Due Diligence Jim Rohn said, “We can no more afford to spend major time on minor things than we can to spend minor time on major things.” Many real estate investors enjoy the thrill of hunting down and negotiating their next investment. I’m one of them. At least to me, that’s the most exciting part of investing. Good negotiations require thorough due diligence. Most investors do very little due diligence. Many simply verify the rent roll, do a physical inspection, make a few adjustments to an operating report and call it good. Then they close on the property and wonder why they struggle with it for the first six months. Due diligence is so much more than that. Investors who understand it are the envy of those who don’t. If you do an effective due diligence before you buy you’ll make better investment decisions. Makes sense, right? And, if you do an effective due diligence before you sell, you’ll sell at a higher price too. If that’s true, why do so many investors struggle with due diligence today? There are two main reasons. First, nobody showed them what to look for. Nobody gave them a list of questions. Nobody explained why to ask questions. Due diligence is not all that difficult if you have a plan covering “all” aspects of investing. (No single checklist covers everything.) However, due diligence should cover these nine specific categories: 1. Books and records The second reason many investors struggle with due diligence is time. It can be difficult to cover these issues when the seller or their agent pushes you to make a decision in seven to fourteen days on smaller properties and 30 days on larger acquisitions. Let’s be honest, that’s not a lot of time. Why do they do that? It’s simple: time kills transactions. Nobody wants to wait for you to make your decision. That means they’ll press you to make it sooner than you probably should. Sellers and agents know that without a sense of urgency, your depleted desire to own the property will show in the price. They know that our excitement and enthusiasm for an investment is at its highest level early in the game. That emotion can spell disaster for investors, usually to the tune of tens of thousands of dollars or more. Can it be done in seven days? Sometimes, if you have all your ducks in a row and you spend the time necessary to get the answers you need. But more often than not, investors make premature decisions that result in more operational issues than they care to deal with when they finally close and take over the property. The Management Plan Like a business plan, the management plan is your roadmap to get you where you want to go. Due diligence is a necessary component of your overall management plan. Remember, you can’t spend minor time on major things. Owning a real estate investment, especially rental property, is no minor thing. Some investors rely on a management company to build and carry out a management plan. They think that’s what they’re paying the management company to do. That’s just not the case. Although most can and will prepare what they believe to be an ideal budget, I haven’t found a management company anywhere in the country that cares as much about the property and its operations as the owner. Whether you hire a management company or onsite manager to help you with the day-to-day operations of the investment or you do it yourself, the management plan falls squarely on your shoulders. Isn’t that exciting? One more thing for you to do! Owning property is just like any other business. Set expectations and follow-up. If you manage the property yourself, you’ll find it much easier to carry out the activities outlined in your plan to help you accomplish your dreams and goals. Here are just a few things to consider: • Role, responsibilities and authority of the management company The management plan could encompass much more depending on how detailed you want to get. But it doesn’t need to be overly difficult; it just needs to clearly define the expectations and activities necessary to get you where you want to go. The nice thing about money is that it’s indifferent. It doesn’t care who holds it. If you’re not where you want to be; if you don’t have what you want or think you need to live the life you want to live at this very moment, I have really good news. You’re not a tree. That means you’re not stuck where you are. That is good news, isn’t it? You really can have it all. There’s nothing magical about investing in real estate. There’s no mysterious, closely held secret that will make you millions more than the investor sitting next to you. Successful investors consistently apply basic real estate fundamentals over and over again. They can all be learned. If you have the desire, commitment, and discipline to carry out the techniques investors have used for many years you’ll accomplish your goals faster than you ever thought possible. That’s what we all want. Anyone can do it, and you can too. Most investors are looking for specific strategies to help them maximize returns and the good news is those strategies exist. Taking the time to plan and strategize can save you thousands and make you millions. You don’t want to end up racing down a steep hill in a little red wagon-just ask my little brother. Steve Steadele, author of the book Multifamily Millionaire, is a successful Real Estate Investor, Broker, Entrepreneur and self-made millionaire. He is a featured speaker at Real Estate Investment Associations across the country where he shares his wealth of knowledge, experience and enthusiasm for the real estate industry. Today Steve specializes in the acquisition and disposition of investment real estate throughout the United States. To learn more about his products and services, visit his Web site at www.SteveSteadele.com. To receive free tips, go to www.MultifamilyStrategies.com.
May
22
2010
5 Secrets To Short Sale Success In Foreclosure InvestingPosted by Usual in Lender Approved Short Sales, tags: Foreclosure, Investing, Sale, Secrets, Short, successForeclosures are reaching new levels and about to go even higher in 2008. It is becoming imperative that Realtors and real estate investors become learn the art of the short sale and to use it to increase their sales production There is a right way and a wrong way to do approach a short sale. Learning and implementing the following 5 secrets to short sale success will allow you to gain proficiency in doing and successfully completing short sales. If you are investor you can create equity where none existed. If you are a real estate agent you can sell homes that are upside down even in a bad market. Secret 1 - Submit a complete package. Do not submit an incomplete package to the lender. If you do it will more than likely be put on the bottom of the pile. Make sure to include all the required information in the order specified my the lender and that every item is completely legible. This is an absolutely critical first step. Secret 2 - Make a careful estimate of the current market value of the property and structure your offer accordingly The initial offer is critical to getting the short sale off to a good start. As you do more and more short sales you will become familiar with how various lenders work and how they react to offers. Most immediately tell you that you have to raise your offer. If they say this you need to find out why they have come to this conclusion.. Your goal is to have the lender order an internal BPO (Brokers Price Opinion) or a full appraisal of the property. Do not settle for just a drive by appraisal. No need to be nasty but be insistent and keep at it until you get the BPO ordered. Secret 3 - Make sure that you personally meet the BPO agent This is the most important part of being successful with your short sale. You must personally meet with the agent or appraiser doing the BPO (Brokers Price Opinion or Appraisal). You job is to provide the person doing the BPO any information that can influence the BPO in your favor so that their price that will justify your offer. You should speak the BPO agent and let him know that the seller is in dire straights and is depending on the BPO. You should have a list of repairs done by a contractor and most importantly have a good list of comparable sales showing that the property is worth substantially less than what is the owner owes. All these items are important but meeting with the person doing the BPO is the most important of all. Do not let them get in the property without you being there and be sure to be early for the meeting. Secret 4 - Don’t take No for an answer The job of the loss mitigator is to get the case settled for as much money as he possibly can. Of course you have to realize that there are certain circumstances that will limit the amount that the lender will take. Some of these are PMI (Private Mortgage Insurance), Fannie Mae, Freddie Mac, FHA and the VA guarantees. These loans are insured by private or governmental agencies and as a result are limited in the amount of discount that they will take. If it is a conventional loan the settlement amount is arbitrary and determined by the end lender or the investor holding the loan. If you are dealing with a servicer rather than a direct lender your negotiations have to be approved by the note owner before a price is agreed upon. Your continued persistence will determine your success in getting prices that allow you to create a profitable transaction.. Secret 5 - Be sure you are prepared to close promptly Once you have finalized your negotiations the bank will expect your to close quickly. Usually within 2 to 4 weeks. If you are unable to close within this period you can have a very difficult time negotiating an extension and may encounter difficulty negotiating with this lender or servicer in the future. This problem does not usually arise if you are the end buyer but if you are planning on “flipping’ the property out to another end buyer you need to be sure that they are ready to close when you finalize the negotiations for the property. One way you can stall this is to slow down your final negotiations until you secure your end buyer. Sometimes this can really work to your benefit when the loss mitigator calls you to see what is holding up your final acceptance of an offer. Many times you can get an additional reduction in the price. Certainly there is much more involved in doing short sales but these 5 steps are critical in getting a successful resolution to a short sale case. Remember that you have to be persistent and polite but do not take no for an answer. Push on and you will succeed Dick Weiss Subscribe to his Free Newsletter at http://www.shortclosures.com Dick is a full time real estate investor in Florida. His specialties include foreclosures, short sales, lease/options and wholesaling properties. Dick also has his own real estate investment club in Stuart,FL
May
09
2010
Investing Money Advice-how To Make A Killing In The MarketPosted by Usual in Licensing Real Estate Road Kill, tags: Advicehow, Investing, Killing, Market, MoneySo what is the best investing money advice today to help you achieve your financial goals? Actually, there are many different tips that will provide helpful to you on your road to financial freedom. However, by far the most important thing you need to know is what you want your end result to be. This is certainly the most important beginner investing or advanced advice you will ever get. Hopefully this stock investment advice will help you to achieve your goals, whatever they may be. Quite simply, many investors jump into the investment field arena without having a clue for what they want to accomplish through it. It doesn’t matter how good of an investor you are-without knowing your final goal, you will never get anywhere with your investments. This would be akin to getting in your car and just starting to drive without knowing your final destination. Here’s your first investing money advice: you need to sit down and map out what you want to accomplish with your investments. Do you want to achieve a 15% annual return? How much money do you want in the bank 1 year from now? How about 5 years from now? 10? As you think through this, also keep in mind what you plan on doing with this money. Just wanting to make a lot of money will not provide a lot of motivation; however, knowing that you could buy a new house, boat or car with this money will be all the incentive you will need to achieve your financial goals. Another great price of advice for investing your money is to write out your goals, and place them in an area where you can view them often. It’s often been said that the simple act of writing out a goal is enough to help you achieve it. This evokes one of the greatest laws in the universe, which is attraction. By continually visualizing your end objective, your mind will subconsciously work on ways to help you get there. Once you know what your financial end will be, now it’s time to map out your course for getting there. This will obviously be different for every investor. The two most common investment methods are real estate and stock investing. Neither way is better than the other; many have made a fortune with each. Your final decision will completely depend on you, your tolerance for risk, and what you want to achieve. For instance, if all you want is to be able to buy a car in the next 6 months, then you won’t want to risk your money with stocks, real estate, or mutual funds. These are long term investments, and should be viewed as such. Most investors view these vehicles as ways to get in and make a quick buck. Nothing could be further from the truth. All of the top stock and real estate investors will only invest in a particular investment if they can be sure it will go up for the long term, contrary to popular belief. Most investors want to make a million dollars overnight and this will rarely be the case. If your goal is to have enough money to purchase a new car in 6 months, then you will want to focus more on short term bonds, or something else that can be assured of going up. This obviously isn’t as exciting as real estate or the stock market, but it will be the best method to help you achieve your particular goal. Remember, it really doesn’t matter which method if investing you choose. The best investing money advice that you could ever receive is imply knowing where you want to be at the end of it. Only after deciding on this should you even start to consider which investment to put your money in. For info on how to buy stocks, visit http://www.stock-investing-tips.com, and learn how to investing in the stock market. |
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