Author Archive
Are You Wasting Time and Losing Thousands of Dollars? – Part 2
Posted on May 2, 2014 byIf you have too many emails in your inbox you can change your set up and create direct paths to instruct your emails to go directly into your subfolders without you even having to look at them and then next to the folder you created on the left there will be a number, for example: Seller leads (1), which means you have 1 unread email in the Seller lead subfolder.
Statistics show that 75% of workers feel colleagues overuse “reply to all.” I can attest to this. I always ask my students to email only one person in my office versus emailing the admin, Kristen, and myself. That is a waste of everyone’s time, as the email was only supposed to go to one person, not three. 15% of workers admit that they themselves overuse “reply to all.”
70% of workers often receive email with vague subject lines. I always recommend if you are emailing someone about a particular property that you put the address in the subject line. This way, in the future, you can search your emails more efficiently, if you don’t file them away. I often use the subject line as a quick message, so it would read: “Need copy of Seller info sheet for Smith.” Then there would be nothing in the body of the email. However, I was informed by one of my students, his phone does not allow him to see all of the subject line, so I quit doing that as much. Read More→
Are You Wasting Time and Losing Thousands of Dollars? – Part 1
Posted on April 4, 2014 byTime is the most important part of our life that we can never get back. When I started as an Investor back in 1998, I worked a full time job as a legal secretary, was married with 2 children ages 2 and 6, a step-son age 20, and worked part time in my real estate career. Time Management was very important to me as I needed to be able to earn 1 year’s salary before I was able to quit my job and work a full time real estate career. Just like most new investors, we attended numerous boot camps to sharpen our skills and take that leap of faith into the real estate arena. I chose this article about time management because I do a One Day Safari with my individual students by coming to their own home to evaluate how they are spending or wasting their time and how can I help them improve their production in addition to reviewing multiple other marketing and business systems to move them forward.
As I write this article, I need you to “act as if” I am sitting in your home, evaluating your production and asking you, ARE YOU WASTING TIME? The most important part of your business is to make sure that you have a designated workplace separate from all of the noise and interruptions of your life. Well? I tried having my office upstairs so I could keep track of my children when I quit full time…that didn’t work. I had a private phone line and a business line set up at my home. When the business line would ring, I used to grab the phone no matter what time of the day it was. I was hungry for a deal! After trying this for a couple of months, I decided it didn’t work because as soon as I would get on the telephone the kids would always want something and I literally would have to run into the basement or my bedroom and lock the door. However, the kids still followed, knocking on the door and wanting something! Even though I was working full time as an investor, I had to put my kids in day care and/or work around their schedule (i.e. naps, bedtime). I decided it was best that I would set up my office in the basement. I got tired of running to the office phone for deals, so I decided to work normal business hours 9 to 5 p.m. However, if you hunger for deals, you may want to answer the phone every time it rings, day or night. Read More→
How Can You Create Long Term Wealth With Short Sales?
Posted on February 28, 2014 byInvestors get into the real estate business to become ‘Millionaires,’ however, many listen to courses that contain outdated information where the systems are no longer working. They follow the wrong advice which seriously stalls a successful kick start. This industry is changing monthly; be sure your trainings are coming from a Mentor who is out doing deals on a consistent basis. I stand firm on my philosophy of “Don’t quit your job until you have at least one year salary in the bank.” Why, you ask? Because it puts unnecessary pressure on many marriages, families and individuals when they quit their job and the deals are not consistently coming in yet. I not only teach Short Sales, I also teach how to buy, hold, flip, subject to’s, lease option techniques, etc., which allow you, the Investors, to truly understand all of your available exit strategies.
In order for anyone to become a Millionaire with consistent and dependable cash flow, they must hold properties. In my Real Estate Junkie Course and my Mentor Program, I always recommend that you flip 2 houses and then hold 1 house. Below is an example of a short sale deal where the Investor ended up holding the property. I negotiated the short sale with my student and also partnered with her. My exit strategy was for her to hold the property, lease it out and my student will never have to lift a finger or do any maintenance to the house for a 15 year term. I explain this exit strategy from A-Z in my Mentor Program. One important criterion for holding a house is that it has 3 bedrooms, a garage, a basement (if applicable) and a swimming pool is optional. Read More→
Homeowner Associations Increase Short Sale Aggravations!
Posted on January 24, 2014 byWhen working with a Seller on purchasing a short sale it is very important to know the terms and conditions that the new buyer must uphold with the Homeowners Associations. Recently, we started working on a short sale wherein the Seller owed the Homeowner Association a fee of $457.00 per month and another Homeowner Association issue wherein they would only allow the Buyer to be an owner occupant. The Homeowner Association claims that the percentage of rentals have been filled and since that quota was met, this leaves only owner occupants eligible to purchase the property. Now your pool of buyers has been decreased greatly leaving only homeowners to buy the property.
The first thing you need to do when obtaining a short sale or any type of deal from a Seller, that you are interested in purchasing the property to fix and flip or just rent, is to obtain the Homeowner Associations Bylaws. There are Bylaws and Declarations that the Homeowners Associations are to provide to a new buyer. Here are some of the things you must look for to prevent any show-stoppers: Read More→
Whose Financials Do I Use For Divorced Couples On Short Sales?
Posted on December 30, 2013 byMany of my students repeatedly ask me, “Do I need both the Wife and the ex-Husband’s financial documents when negotiating a short sale?” I let them know that there are several variables that I need in order to give them an answer. In order to have a clear understanding of whose financials I need to collect, I need the following information: Property Appraiser sheet (whose name is listed as owner?), a copy of the last recorded Deed (whose name is on there?), a copy of the Property Settlement and Judgment of Divorce (who was awarded the property and does it contain verbiage stating that a certified copy of the Judgment of Divorce and/or Property Settlement can be recorded in lieu of a Quit Claim Deed).
FOR EXAMPLE: Husband and Wife bought the house together with a Mortgage and Note from Wells Fargo. They then get a divorce and the Wife is awarded the house with no interest from the ex-Husband.
When Sellers get a divorce, typically one party will say they want the house and that person will be solely responsible for the debt on the house. A good attorney will ensure that there is specific verbiage in the Judgment of Divorce and/or Property Settlement which states that the Wife is going to be responsible for the debt on the home and that the ex-Husband will Quit Claim his interest by Deed over to the Wife so that he is no longer on the property. In addition, a good attorney will add verbiage in the Judgment of Divorce and/or Property Settlement which states that should the Husband not sign a Quit Claim Deed to transfer the property over to the Wife, then a certified copy of this Document (Judgment of Divorce and/or Property Settlement) may be filed with the Recorder’s Department in lieu of (instead of) a Quit Claim Deed to transfer the property. Read More→
What Makes or Breaks a Short Sale?
Posted on November 26, 2013 byMany Realtors and Investors really don’t know the secrets to a successful short sale. They think just because they make an offer close to market value that their short sale should go thru! Obviously, that is not correct. The secret to a successful short sale consists of several things including 1) listing price and 2) broker price opinion/appraisal on the property.
Let’s start with the listing price. How do real estate agents get paid? By commission right? Are they not taught that they need to list the house as high as possible to get the best price for the seller and the highest commission for themselves? So … when a Realtor is not trained how to do a short sale, what price do you think they list the house at? They list it for as high as possible. Unknowingly, they are doing a disservice to the sellers, buyers and themselves; as it is the Short Sale Lender that tells the agents, sellers and buyers how much they are willing to sell the property for. So, when the Realtor lists the property high, it encourages the BPO agent, who is also a Realtor, to try and reach for the list price. Remember, they use to be Realtors receiving commission and they too would list the property as high as possible. The only designation that I hold as a Real Estate Broker is SFR which stands for Short Sale Foreclosure Resource. I took this class just to see what the Realtors are being taught on short sales. I was impressed that they also recommend that the property be listed LOW not high so that the BPO Agent will provide the Short Sale Lender with their own value instead of reaching for list price. Just like an appraiser, they are also encouraged to reach for the list price since 99% of the time appraisals do not come in higher than either list price and/or the purchase price which a buyer is willing to pay. Read More→
Nationstar and Auction.com Take Advantage of Short Sale Sellers!
Posted on October 30, 2013 byRecently we were working a short sale through Nationstar who requested that the Seller sign a document allowing Nationstar’s affiliate, Auction.com, to sell our short sale. Yes, you heard me correctly! We already had a buyer, submitted all the financials to Lender, and had the BPO (Broker Price Opinion). However, they hadn’t countered the buyer yet. The form that my agent and her Seller signed stated that Auction.com was allowed to hold an auction on the property and should my agent be a dual agent on both sides, that she would not get paid more than 3% commission. First off, I want all Brokers to be aware that agents do not have the right to sign away commission unless the Brokers previously allowed this right, nor do they have the right to sign away the Broker’s Exclusive Listing Agreement terms and conditions.
I was furious as Auction.com was advertising this house illegally and unethically to the public. They were advertising as Bank Short Sale Approved! Well, if it was approved, I would have already had the approval letter for my existing buyer that had been waiting during this short sale process. In addition, how can a Seller back out of my Buyer’s contract and enter into a contract with the winning bidder’s contract without having some legal ramifications? The winning bidder was to pay 5% to Auction.com for acting as auctioneer, place a deposit immediately with Auction.com plus all the forms that they had to sign which gave away all their rights for inspection with clauses saying that they would have to pay money to Auction.com for cancelling the contract. The highest bid was $80,000 plus $4,000 over and above to the auctioneer for conducting this auction. They forced the Listing Agent to hold their own open house but then reduced our commission as Listing Agent. Read More→
Closing Short Sales Back to Back While the Money Stacks!
Posted on October 5, 2013 byI was just up speaking for Atlanta REIA when a member asked me “isn’t closing short sales back to back illegal?” My answer was NO! He asked me, when did that change? It has never changed. He just didn’t ask the right questions to the right Attorney or Title Company. Closing a short sale back to back can only be done with full disclosure which I always do on my paperwork to the short sale lender and to the “C” Buyer. I provide copies of my purchase agreement which I have signed with my “A” Seller and me as “B” Buyer to the short sale lender. I then provide copies of paperwork that I had signed with my “C” Buyer and me as “B” Seller to my title company. If you are using my paperwork, here is how I disclose the back to back CASH closing. Remember, disclose, disclose, disclose!
1. The “C” Buyer is a cash buyer.
2. The “B” Seller/investor must has signed a form along with the “C” Buyer, stating that they are aware that the “C” Buyer’s money is going to be used to close the first transaction between the “A” Seller who is doing the short sale and the “B” Buyer/Investor who is purchasing the property prior to selling to the “C”/Buyer.
3. In addition, the Title Company and/or Attorney who is writing title insurance on the property, their underwriter has no problem with this type of transaction as long as this form along with the disclosure stated in your purchase agreement to the short sale lender is provided to them for review. Read More→
Real Estate Investor Profits $68,000 Because of Her Mentor!
Posted on September 2, 2013 byDon’t Question Having a Mentor… JUST HAVE ONE!
I remember when I decided to quit my job as a legal secretary and become a millionaire in real estate! I started with Carleton Sheets’ course. Once it arrived, I was to read it and take action. Yeah, right! I found that between my J.O.B. (Just Over Broke) and taking care of my children, I was busy and distracted, so the course sat on my shelf collecting dust. About 6 months later, I got a call from Carleton Sheets’ organization asking if I wanted to be in their Mentor Program. How much? They said $2,000.00. At that time, I had to make a crucial decision that would change my life. Did I just want to “dream” about leaving my 9 to 5 job or did I really want to take action and make it happen? I thought about it for a couple of days and I said “YES!!” The training was just the start. I was able to purchase 6 homes following the course. Working in my home environment with so many interruptions was the hardest thing I have ever done in my life! I can tell you one thing, if it wasn’t for the Mentor pushing me… I would have given up and quit!
Just like many of you reading this article, I attended multiple boot camps and ordered over $250,000 worth of courses. The only difference between where I am in real estate and where you are, is that I took action and hired a Mentor to continue to push me forward and hold me accountable. And a Mentor gives you the answers to EVERY question you have! I am only quoting one of my students, “Having Kimberlee is like having personal access to your own magical Real Estate Encyclopedia! She has answers and solutions for everything!” That’s gotta give you some relief right there about what a Mentor can do for you! Everyone learns differently. Some people are visual learners and have to come to a class room and be taught, other people have to physically do a transaction to understand the process, and then some can pick up a book and do exactly as it says in the course and become successful. Read More→
Playing Hide and Seek with Lenders
Posted on June 27, 2013 byWorking an effective short sale can seem impossible if your Seller is not providing you with accurate information. The very first thing I require from all Sellers is a ‘complete’ Seller Information Sheet. My Seller Information Sheet is customized to specifically catch every pertinent fact about the Seller and the house.
Below are several things that I need in order to review the deal and determine my exit strategy as an Investor and/or Realtor. Read More→
Helping Sellers Survive the Foreclosure Roller Coaster Ride
Posted on May 31, 2013 byGoing through a Foreclosure action and losing your home is a very stressful situation for anyone. Until you walk in those shoes yourself, it’s hard for an Investor or Realtor to understand what a Seller is facing in their day to day life. I would like to share how a Seller feels during this process so that you can really begin to understand the Seller’s experience. It IS a scary roller coaster ride and you can help deter them from crashing and burning at the end!
Owning a home has always been the American Dream. Sellers become very emotionally attached to that “dream home.” They work their tails off, save as much money as they can, and make the big purchase. Unfortunately, the adjustable rate mortgage was introduced to our economy which allowed Sellers to purchase the home of their dreams with little money down, interest only payments with the Sellers knowing that in 3 to 5 years they will have to refinance their home to a fixed 30 year mortgage in order to keep it. When the housing market crashed, it affected everyone drastically.
Many people found themselves without a job ie. realtors, mortgage brokers, developers, contractors and many more people in different occupations. Can you image if you had a 700+ credit score and then suddenly you weren’t able to make your payments on your home, car, credit cards, and purchase food or clothing for your family? This is such a humbling experience that many Sellers don’t survive. Everything they have worked for their entire life is gone! This situation has crushed many dreams and is still occurring daily. Read More→
“Flippers Heaven” Created by Savvy Negotiating
Posted on May 1, 2013 byWhen do you know if you have a great house to purchase, fix and flip? Many investors start out their career looking for fast money. They focus on Wholesaling by looking for deals to get under contract and then wholesale for a $2,000 to $5,000 profit. I’m not saying that you can’t make money in wholesaling; however, you do need to consider all types of real estate transactions such as short sales, lease options, options, and subject to’s in order to find where you can make the most bang for your buck!
My 16 year old son, Taylor, has been involved in my business every since he was able to walk. He is ready to get his first house! We used to put him through windows of vacant houses to unlock doors and get inside so that we could make offers. He has learned so much in my business; many of you heard him speak during my Foreclosures Gone Wild event in Georgia. He is purchasing his 1st house, rehabbing and hiring his friends, then flipping for profit with me, Kimberlee Frank, so he can purchase his first car! Read More→
