Did You Give Up on Short Sales?Posted on April 11, 2011 by
If you are counting on the past real estate trends and regulations to help you close deals today, that is enough to put you out of business. The short sale industry is changing and if you don’t change, your short sales deals will fall apart. NO CLOSINGS = NO CA$H. For the past couple years, I have watched the short sale industry change on a monthly basis for Investors and Realtors. What worked in the past is not working now; what worked in January 2011 is not working now. Since I am a Real Estate Broker and an Investor, I have had to watch with a keen eye in order to adapt quickly and successfully to the changes.
In order to allow your business to grow and be successful, you must also invest the time to “sharpen the saw” and renew the “mind” of your business………for the sake of your business. The only guarantee we have is that change will always continue. It’s scary and often we want to bury our head in the sand and wait until it passes, but that’s not a choice here. We must arm ourselves with education and turn change from our enemy into our friend. Join us Tuesday evening at 7 PM ET on the Real Estate Junkie Webcast to find out how!
Disclose, Disclose, Disclose!!! Disclosure is one of the keys to your success in the short sale arena. Understanding what you legally can and cannot do is a big key. I have had to write and re-write my courses several times to ensure accuracy for you with the most current content. And we are now entering a new season on “MARS.” M.A.R.S. refers to Mortgage Assistance Relief Services. If you are advertising, negotiating or referring short sale deals without compliance or use of MARS disclosures, then you may most likely be in violation of the Federal Trade Commission. If you are advertising, negotiating or referring short sale deals, then YOU NEED TO BE ON THIS WEBINAR! It is a “must see, must hear, must know” training!
You need to make these changes in your business now. Many people will give up on marketing for short sales because of the additional disclosures necessary. This just means more “fish in the pond” for you and me; be the one that will continue to comply and you will be the one who gets more deals! Many people are still searching for the get-rich-quick program. In order to be successful, you have to move forward with the flow of change and continue to make the necessary adjustments that scare most people right out of the real estate business. Investing in real estate can bring in lots of money for those who adapt. Real estate is just like every other area in your life, if you want it to be successful, then you must keep educating yourself. I am speaking on this webinar in order to support you in that decision!!
I have been asked by many of you, “Kimberlee, should I become a Realtor?” For this market and for the short sale industry, I say “YES!!” These disclosures serve all parties, no matter how you are involved in the deal. Whether you are earning profits and/or commissions, you are earning while you are learning! Working with the correct Real Estate Company is another big key to your success. It is essential to have a Company that is keen on Short Sales, has an In-house Mitigating Team, and is Investor Friendly. Many Realtors list properties and then sit silently hoping and praying that another agent will sell it for them. They never actually experience and learn the process of selling their own listing. As the property gets passed through the chain, this causes hold-ups. The Investors then purchase the property and list it with an agent, expecting them to sell their property only to find out they are just a listing agent and not a selling agent. Everyone, whether you are an Investor or a Realtor, should know how to sell a house in a matter of days. I have used multiple creative, out-of-the-box, wacky ideas to sell my homes and THEY WORK!!
Investors will want to list their property on the Multiple Listing Service (MLS) in order to find a buyer quickly so they can immediately resell it. But … can they do that with all of the current changes? Maybe and maybe not. There are many rules that a Realtor has to follow based on the MLS, so they do not jeopardize their license. What is the difference of a real estate agent and a Realtor? A Realtor is a member of the National Association of Realtors who uses MLS. A real estate agent is not a member of an MLS. You need to understand the rules for each of these positions.
Purchasing short sales with trusts, assignments and options requires more and more disclosures. Are you using them? Many mortgage companies no longer allow trusts, assignments and/or options contracts. So what do you do? Get frustrated? Quit? NO WAY!! You adjust with the times, and I will show you how! You learn which deals to buy as an Investor and which deals to list as a Realtor in the case that you don’t have the money to buy, hold and resell. There are many people who would like to start investing in real estate but have no money. When a good deal comes along, you can always find money by including a partner, private money or a hard money lender. The challenge is selling it quickly before your profit gets eaten up by holding costs. Learn how to do that, and you will learn how to put thousands of dollars in your pocket.
The death of the Land Trust, Assignment and Option to Purchase has occurred in many mortgage companies. Back-to-back closings are few and far between for many investors, resulting in the Realtor remaining as the only party to make any money. So you ask from an Investor perspective, how can I make money on short sales in a seemingly impossible industry? Well, I have the system where investors can still purchase and sell short sales and make money. As a Real Estate Broker, I also have the strategy to protect the Realtors on short sale listings. You will learn these secrets as you hear me speak on our webinar. So … mark your calendar and be there! There are plenty of short sales to go around; be sure to invite all of your real estate and investor friends!!