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When considering short sales many people don’t understand the benefits. Some benefits are obvious, while other benefits are not so obvious.
So what are the benefits?
First and foremost short sales benefit people in foreclosure. If done properly, and I stress “properly”, homeowners benefit from not having a foreclosure on their record. Yes their credit will be damaged in the short term, but a responsible homeowner can overcome this damage in a relatively short period of time. Having a foreclosure on their record will be more devastating in the long term compared to a successful short sale. Helping a family facing foreclosure, so they can essentially start over, is very rewarding.
Another benefit is You are contributing with the turnaround of the economy. Millions of homes are or will be facing foreclosure. The housing bubble that started in the early 2000s and ended in 2007 massively inflated the true market value of homes. As with all economical bubbles they burst, which is just the marketplace correcting itself to reflect the real value of a product or service. The economy won’t fully recover until the housing market clears itself of overpriced houses. With each successful short sale we are one step closer to clearing the market of overvalued houses.
You can make money performing short sale transactions. Yes it is legal to help a homeowner short sale their house before they are foreclosed. But you must do it the correct way per the government regulations and lender guidelines. Don’t let this scare you, especially when it can be done legally and ethically. There is a correct way and numerous wrong ways to short sale a house, make sure you are doing it the correct way. Once you learn the correct way, your potential to help people and make money is almost unlimited.
If any of the following interests you;
- helping distressed families in foreclosure
- helping home-buying families get excellent deals on their next home
- helping turn the economy around
- earning extra income for you and your family
- feeling good about all the above
Consider successful short sales as an opportunity to add value in your life.
So what is the Catch?
Before you get too excited, there are some realities to consider prior to making this decision. First, successful short sales take a lot of work and effort. “Short sales ain’t easy.”
Consider some of the required actions in a successful short sale.
- Finding distressed homeowners. There are countless ways to find distressed homeowners and finding methods that work is essential so you don’t waste your valuable time.
- Talking and convincing distressed homeowners how you can help is challenging with many folks.
- Listening and understanding the situation of a distressed homeowner is absolutely required. You must listen carefully to a homeowners needs and wants in order to determine a short sale is in their best interest. Because short sales is only one option to consider, you must be knowledgeable enough with the other options. Because ultimately you are working for the homeowner and not your personal financial reasons.
- Understand and prepare all the documents in a successful short sale. A successful short sale includes documents you review with the distressed homeowner. Explain these documents thoroughly so the homeowner is comfortable moving forward with you. Otherwise they will feel you are just another person trying to scam them out of their house. A successful short sale includes certain documentation that puts them at ease. This is crucial when gaining credibility and trust with distressed homeowners. Distressed homeowners have enough to worry about and they don’t need to have another worry placed upon them.
- Once the documents are complete, next you have to deal with the banks and lenders. Understanding the various lenders’ default loan process, procedures, policies, and departments is challenging and time consuming. Having the experience to be able to effectively negotiate with the lenders can be frustrating. You can’t let your frustrations impact the negotiation process.
- Understanding the local foreclosure law and process is also very important. You have to execute certain steps in a timely fashion or the home will be foreclosed sooner than later.
- Playing an active role on the Broker Price Opinion (BPO) can have a tremendous impact on the negotiation process with the lenders. If the BPO value is above market value then you will have difficult time convincing a buyer to purchase the property. Handling BPOs comes with experience and insight.
- Finding qualified buyers can be challenging because credit is tight and guidelines are strict. Building a buyers list or finding good agents is time consuming.
- Controlling and managing the closing process is another critical component to a successful short sale. A successful short sale is not completed until the deal is closed! You can’t afford to lose focus in this final phase.
Discouraged Yet?
Obviously successful short sales do require effort, attention to detail, planning, insights, knowledge and experience.
Still want to do short sales? You can certainly do short sales yourself, but you will be greatly constrained on building your wealth and having time for other more enjoyable things in life.
I’m Still Interested
If you are constrained by time, want a way to help more homeowners, or want to exponentially increase your wealth consider partnering with an organization that performs 75% of the work for you.
Considerations when selecting a partner for your short sale deals
(Choose wisely)
Training is very important to increase your success and decrease your mistakes.
- how to find homeowners in foreclosure
- how to communicate with distressed homeowners
- how to prepare the proper documents for successful short sales
- how to present the paper work to the distressed homeowners
- how to manage the BPO
- how to find and manage qualified buyers
- understand and influence the foreclosure legal process
Key Services a partner should offer and you absolutely need to leverage.
- Availability to answer questions and strategies about a specific case.
- Review, process, and submit the proper paper work with the banks and lenders
- Follow, execute, and respect the lenders’ processes and guidelines they must follow.
- Have a good track record negotiating successful short sales and have the homeowners’ interest at heart.
- Handle the closing transactions
- BPOs
- A case management tool to ensure a successful short sale. You should have access to your cases 24 hours a day.
- A large pool of potential buyers you can leverage
- Agents who can assist with selling the property
- Available training resources to partners 24 hours a day
- Ability to list properties on MLS is a must with lenders
- Events where partners network and mastermind with people like you.
- Continuously researching and communicating changes in the industry that benefit partners.
- A Success Coaching Program that is tailored to your needs. A program that is not just for short sales, but instead how to be successful in life in general.
These key services should be provided so you can focus increasing your pipeline of deals instead of you performing those time-consuming and energy-draining tasks that are required for a successful short sale. You don’t need experience to begin your journey.
My interest is peaked – I’m ready for the Sales Pitch
My name is Hunter Paschall and to be honest short sales are working. I’ve been closing short sale deals for 15 years and have seen many changes in the real estate industry in the last 5 years. I’ve seen changes in the sellers, buyers, banks, and government regulations. To survive in this business, I had to stay on top on the latest changes especially with the banks and government regulations.
These fears and objections are powerful forces inside of you holding you back. Most folks need help to overcome these powerful forces. You don’t need to feel embarrassed or reluctant. Don’t make this another year of feeling regretful you didn’t take action. I can help you be successful creating another stream of income for you and your family by attending my next event on
Don’t be fooled by those who say they have a system that completely automates the short sale process. To be successful in this industry you have put in some effort, have some knowledge, and are able to connect with people because this is a people to people business. At the event you will gain a better understanding how and why short sales work. Over the last seven years I’ve taught and partnered with many folks who overcame their fears of doing short sales. You can too!!
Short Sales – What’s your next move?
When deciding to move forward in real estate and short sales you have a few options.
- Do it yourself. Short Sales are certainly not rocket science to learn. But this option will take a very long time to master and you will initially waste a lot of time and money from rookie mistakes. I don’t recommend this option.
- Learn and Partner from a Do’er who has hands-on knowledge and experience in short sales. You will by-pass the common mistakes and avoid loss of time and money. I highly recommend this option if the person you are learning from is knowledgeable, is experienced, is customer focused, and most importantly is trustworthy.
Short Sales – Choose your Partner Wisely
You must select your partner wisely. You want to find a partner who most importantly has a program and team that cares about you and your success. A partner who truly cares about you is the most important quality to look for. Sure I can tell you about my experience and knowledge in short sales but that is minor compared to having someone you can trust.
Come to my next event and meet me to get a sense of my hands-on knowledge, experience, and commitment to your success. You will see, hear, and feel I’m a Do’er and not just a Guru of short sales.
Attend my next event to actually meet current and past students/partners and hear firsthand how I helped them overcome their real estate investing challenges. Take Action Now and Jump Start 2012!
I scheduled the event early in the year to Jump Start your Wealth and Health in 2012.
Do you want to overcome your fears and objections in 2012?
Do you want to make a change and have a successful 2012?
Do you want to be a do’er and not a dreamer in 2012?
Act NOW and overcome your Challenges holding you back. You must register to attend. Do not show up unannounced. You will not get in as there is only a limited space and partnerships available.
Looking forward to see you there!
Hunter Paschall
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Sounds fishy, right? While surely Brad Pitt has purchased and sold a number of homes, it is Brad Pitt’s portrayal of Billy Beane in the movie Moneyball that can really teach us a lot about the way we think about real estate.
The Del Mar Home Decorating and Remodeling Show 2012 runs through Sunday the 29th and is open 10 – 6 today, 10 – 7 tomorrow, and from 10 until 5 on Sunday.
