Realtors Work with Short Sale Investor

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Presentation on how Realtor and Agents can work with a short sale investor to close a higher percentage of shorts and make more commissions.

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“How to get paid Full Commissions working with a Short Sale Investor” : 

“How to get paid Full Commissions working with a Short Sale Investor” By: Ever Espana everic.properties@gmail.com EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Who Are We?” : 

“Who Are We?” We are a group of RE Investors that specialize in Short Sales. We are a negotiation & property acquisition company. We assist homeowners and real estate agents with short sales. We provide solutions and answers to Short Sale questions. We have a combine four years experience in Short Sales. We work in the South Florida area and other states. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Who is Ever Espana?” : 

“Who is Ever Espana?” I’m 35 and live in South Florida, married, with two kids. I served in the Army, worked as a Programmer, and RE Investor. I enjoy music, sports, movies, and spending time with family. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“What You will Learn Today” : 

“What You will Learn Today” What is a Short Sale? Why and When a Lender will accept a Short Sale. Why Real Estate Agents hate Short Sales. The Foreclosure crisis in our Market and the Opportunity. Homeowner options for stopping a Foreclosure. The Steps in the Short Sale Process. How working with a Short Sale Investor will benefit you. A Better way for working with Short Sales. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“What is a Short Sale?” : 

“What is a Short Sale?” A short sale is a sales transaction in which the seller's mortgage lender agrees to accept less than what is owed on a mortgage loan to allow transfer of a property to a new buyer. Generally available for homeowners in a pre-foreclosure status with hardship case, this includes relocation and divorce. Settlement can be negotiated on all mortgages plus junior liens. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Why would a Lender accept a Short Sale?” : 

“Why would a Lender accept a Short Sale?” To minimize the losses vs. a foreclosure. Lenders have Loss Mitigation Departments responsible for mitigating, or minimizing, losses from defaulted mortgage loans. Lenders are in the business of loaning money, not managing and selling real estate. REO cost banks more money. Banks must maintain reserves for non-performing loans. Non-performing loans reduce what can be loaned by 2-8X the amount of bad debt. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“When will a Lender accept a Short Sale?” : 

“When will a Lender accept a Short Sale?” If the seller has a valid hardship. If the lender receives an offer that is higher than what it expects to make by foreclosing on the property. If the loan is in default, or where default is imminent. If the offer meets the current servicer/investor guidelines. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Top 5 Real Estate AgentsHate Short Sale” : 

“Top 5 Real Estate AgentsHate Short Sale” Bank discounts the real estate agents commission. No current offers and bank wants an offer before starting Short Sale process. Buyers and Agents do not want to make an offer or show house. Real estate agent spends all their time on the phone working on a short sale. If agent gets an offer the buyer usually walks away because the approval process takes too long. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Current Solutions for Short Sale Problems” : 

“Current Solutions for Short Sale Problems” Agent can: Avoid Short Sales completely. Work only with Buyers and make offers on non-Short Sales. Outsource his Short Sales to a negotiation company. Use a title company that promises free Short Sale negotiations. Quit Real Estate and get a regular job. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“What if you could… ?” : 

“What if you could… ?” Receive a commission on every short sale property that closes? Obtain a offer immediately on every short sale property you list Close with end buyers in 15 -45 days, instead of months. Outsource the time consuming negotiations Check “case” status online 24/7? Pay no fees (seller, buyer or agent)? EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Solutions working a Short Sale Investor” : 

“Solutions working a Short Sale Investor” Makes an offer immediately on all properties that meet our buying criteria using a special option contract. Full-time negotiators to handle all loss mitigation work with the banks. Including submitting short sale package and calling bank to follow-up on the short sale status. Investor will pay full commission 6%, plus bonus. If investor cannot buy the house, the investor steps aside and the agent can sell at the price the bank has already approved. Helps close a higher percentage of Short Sales, because the process is started sooner and Buyers don’t have to wait. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Benefits for Real Estate Agent” : 

“Benefits for Real Estate Agent” Allows properties with no equity to be sold at attractive prices in a shorter time period. There is less competition for properties that have little or no equity. This creates an opportunity in a growing market. Allows you to earn full commissions on sales that would have been lost without a short sale. Provides a way to help people in financial difficulty who couldn’t otherwise be helped. Easy to demonstrate benefits to sellers in need. The market sets the price where it will sell quickly allowing you close more deals. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Benefits for Homeowner” : 

“Benefits for Homeowner” Homeowner or Agent doesn’t pay for anything. Sellers sells house that otherwise would not have sold. Sellers avoid a foreclosure on their credit report. We will negotiate with Lenders to waive their right to a deficiency judgment as part of settlement . Short sales minimize the loss, and therefore any shortfall reflected on a 1099C in a Foreclosure. Allows sellers to get on with their lives! EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Homeowner Risks” : 

“Homeowner Risks” The Lender may choose to either: Seek a deficiency judgment against the seller for the difference or request a promissory note. Send an IRS 1099C for the amount forgiven or loss, creating a tax liability for the seller. Seller should seek tax accountant. If primary home, amount may be forgiven by IRS. Foreclose on a Property and send an IRS 1099C for the loss, creating a tax liability for the seller. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Real Estate Agents Job” : 

“Real Estate Agents Job” Pre-Qualifies Homeowners for a Short Sale. Collects Signed Agent agreements and Investor paperwork. Collects Sellers Short Sale paperwork. Prepares CMA for initial offer to be submitted to bank. Real Estate Agent lists property. Finds buyer for investor to resell the property. Collects commission check when property is sold. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Investor Paperwork” : 

“Investor Paperwork” EVERIC PROPERTIES, LLC “Seller Paperwork” Hardship letter Financial form (Expense and Income) 2 years tax returns 2 months bank statements Last two pay stubs Copies of mortgage statement(s) 1. Option for Sales and Purchase Contract 2. Affidavit of Understanding 3. Notice of Option 4. Notice of Cancellation Rights. 5. Authorization to Release. 6. What is a Short Sale? Document Copyright 2009. Everic Properties, LLC

“Investor Common Questions” Part 1 : 

“Investor Common Questions” Part 1 Q: Sounds too good. Is this legal? A: Absolutely, as long as everything is disclosed to all parties and there are two separate transactions. The transaction must be at arms length. Q: How can you list, you are not the owner of record? A: The Option Contract gives us, the Investor, the right to list, market, show, and resell the property. We can provide a copy. Q: Are you using funds from the end buyer to close on the first transaction? A: No, we are using our own funds to buy the house. Investor buys with cash and then resells to the end buyer EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Investor Common Questions” Part 2 : 

“Investor Common Questions” Part 2 Q: Are you using a land trust to buy? A: No. Some investor use the land trust to hide their intentions to the End Buyers lender. We use an Option contract and disclosures to make the transaction transparent to all parties involved. Q: Is my Fiduciary Responsibility to the seller or investor? A: Your Fiduciary Responsibility is to us the Investor. You are bring us as the buyer. (No Brokerage Relationship Disclosure) Q: Why do you need me? Can’t you find your own deals? A: Yes, we can find our own deals. However, working with agents help reduce our marketing costs and we provide a benefit to seller and agent. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Investor Common Questions” Part 3 : 

“Investor Common Questions” Part 3 Q: How do you make money as the investor? A: We make money by creating a spread between what we buy and resell the property. (e.g. We buy at $150k and sell at $175k) Q: Does Seller’s Lender know you are reselling for profit? A: Yes. It’s disclosed in the Option Contract. “Investor intends to resell for Profit” Q: How do you handle seasoning issues? A: We prefer Conventional loans, No FHA Loans. We record the Notice of Option with the county. This will appear on the title commitment letter to the End Buyer’s bank. The letter will show the option as an exception. It will show that title must pass to investor first before passing to buyer. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“One More Time…Everything is Disclosed” : 

“One More Time…Everything is Disclosed” The KEY to our business and keeping everything 100% in compliance is DISCLOSURE, DISCLOSURE, DISCLOSURE. EVERYTHING IS DISCLOSED to the Homeowner. EVERYTHING IS DISCLOSED to Lender taking the discount. EVERYTHING IS DISCLOSED to End Buyer. EVERYTHING IS DISCLOSED to Lender lending on the property. Investor purchases the property cash with his own funds. Two Separate transactions. (No double or simultaneous closing) EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“The Ten Step Process” : 

“The Ten Step Process” 1. Agent collects paperwork. 2. Agent prepares CMA for initial offer to bank. 3. Negotiator initiates Short Sale Process. 4. Negotiator sends package to Bank. 5. Bank initiates a BPO. 6. Investor meets BPO Agent. 7. Agent markets and finds end buyer. 8. Negotiator finalizes negotiations and approval. 9. Agent presents offers from Buyers to Investor. 10. Title Company prepares for Closing. EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

“Let’s get started todayor have more questions” : 

“Let’s get started todayor have more questions” Please let me answer all your questions today. Please call me or email me your contact info: Contact: Ever Espana Cell Ph: 786-877-1636 everic.properties@gmail.com www.ibuyshortsalehouses.com EVERIC PROPERTIES, LLC Copyright 2009. Everic Properties, LLC

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