Short Sale Presentation for Realtors

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A realtor's guide to making huge profits with short sales.

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By: kraziem12 (112 month(s) ago)

very good presentation

Presentation Transcript

Making Huge Profits with Short Sales : 

Making Huge Profits with Short Sales Realtor’s Guide to Working Less While Earning More FIR Group LLC www.realtorshortsaleprofits.com

Days Gone By… : 

Housing values increased by 10-15% per year. Loans were easy to get. Buyers were lining up to buy houses. Real Estate transactions closed quickly. Realtors made a lot of easy money. Days Gone By…

Today… : 

The money tree is dead. Too many houses on the market with too few buyers. Loans are difficult to get. Only very qualified buyers can buy. Distress sales make up 50-75% of the Market. Home owners who are not in distress can’t sell because they can’t compete with Short Sales and Reo’s. Realtors work twice as hard for half as much. Today…

What is a Short Sale? : 

A Short Sale is a transaction in which the lender agrees to accept less than the amount owed as a payoff in order to transfer ownership of the property. A Short sale is a voluntary process undertaken by the lender as an alternative to foreclosure. What is a Short Sale?

Why Lenders accept “Short Sales”? : 

It costs the lender an average of $50,000 to foreclose on a financially distressed property. Lender recovers the most money by taking known loss now. Reduction of liability and carrying costs. REOs have unknown carrying costs and are subject to vandalism. This is often the worst case scenario for the lender. Lenders know that properties show best when they are in move-in condition. Opportunity cost of bad debt. Lender is making a loss on money that could have otherwise been earning them interest. Why Lenders accept “Short Sales”?

Why Should a Homeowner do a Short Sale? : 

Home owner avoids foreclosure. Credit is salvaged. Move on with their lives. Peace of mind because the situation is resolved. Why Should a Homeowner do a Short Sale?

Standard Short Sale Process : 

Standard Short Sale Process

Short Sale Challenges : 

Few lenders own the notes on which they collect and so have to get approval from a third party. There could be several people involved, including investors or mortgage insurers, all of whom have to approve the Short Sale. Time is critical as foreclosure gets closer each day. Delays in approval and closing! Junior lien holders have to agree to the transaction. This is more difficult when the 1st mortgage or senior lien holder sets a limit on the compensation junior lien holder(s) may receive. Short Sale Challenges

Common Realtor Objections to Working Short Sales : 

Buyers’ agents are reluctant to show Short Sales. Approval process is too slow. I’m a Realtor, not a Loss Mitigation Negotiator! Too much work for a reduced commission. Buyers are impatient and often find another home before process is complete. Listing Agents must wait for an offer to begin Short Sale process as property moves toward Foreclosure sale date. Common Realtor Objections to Working Short Sales

Realtor’s Conundrum : 

Realtor’s Conundrum Buyers are impatient and don’t like to wait. As the cycle below shows realtors are faced with a difficult situation.

Common Mistake : 

Holding out for the highest offer to present to the lender. Frequent Scenario Seller/Realtor waits to get the highest offer to present to the lender. Lender takes anywhere from weeks to months to approve the offer. During this time buyer finds another home to purchase and walks. Realtor can’t find another buyer at the high pre-approved price. Seller accepts another, lower, offer but lender won’t budge. Seller runs out of time and the house goes into foreclosure. Realtor does months of work and doesn’t get paid. Common Mistake

Reasons Why Realtors Do Short Sales : 

Distressed sales make up between 50-75% of the market. More listings = More opportunity = More income Increased sales volume due to lower prices. Creates solutions for home owners in desperate need. Increased business through referrals. Provides income in a slow market. Reasons Why Realtors Do Short Sales

Your Options… : 

Decide they are too difficult and stay away from Short Sales altogether (pass up on 50-75% of potential income). List them at a price to cover all costs and forget about them. List them as Short Sales, do all the negotiations, handle all the paperwork, and show the property yourself. Give up a portion of your commission and outsource the negotiations to a 3rd party. Work with us, we handle all the tedious negotiations and pay you a minimum of 6% commission on every Short Sale. Your Options…

Imagine You Could… : 

Close your Short Sales quicker with less work. Earn a minimum of 6% commission on all your Short Sales. Avoid wasting precious time waiting for an offer to start the Short Sale process. Help your clients avoid foreclosure. Eliminate unnecessary waiting for buyers. Imagine You Could… Together we can earn more while working less.

What We Do… : 

Purchase Short Sale properties and resell them for a profit. Make offers on your Short Sale prospects immediately. No more waiting around for an offer to start the Short Sale process. Handle all the paperwork and negotiation free of charge. You no longer have to waste your time waiting on hold with the lender. With the time you save you can do what you do best, find new Short Sale clients and meet with potential buyers. Pay our realtor partners a minimum of 6% commission on every Short Sale, 9% if they also represent the end buyer. What We Do…

Sounds Great, How Does it Work? : 

As a participating realtor you would… Identify home owners with Short Sale properties. Present our offer and collect paperwork. Submit paperwork to our negotiators. List the property for sale and market for a buyer. Attend BPO meeting. (Training available on what to say/do). Maintain communication with the sellers, our negotiators and the buyer’s agent. Attend Closing. Collect Paycheck. Sounds Great, How Does it Work?

How Does It Work? (2) : 

Just think A-B-C How Does It Work? (2) A: Home Owner B: Investor C: End Buyer 1st Transaction 2nd Transaction A B Sells To B C Sells To Transaction is fully funded, closed and deed transferred Transaction is fully funded, closed and deed transferred Both Transactions close on the same day *We buy Short Sales and resell them for a profit

How Does The Realtor Get Paid? : 

How Does The Realtor Get Paid? 1st Transaction 2nd Transaction A B Sells To B C Sells To 3% 3% *3% Buyer’s Agent 6% GUARANTEED *Earn 9% commission if you also represent the end buyer. Double Your Commission!

Let’s Compare… : 

Let’s Compare… Working with Us Find Short Sale Candidate. Meet Owner & Collect Paperwork. Attend BPO. Market Property. Coordinate Closing. Collect Paycheck. The Old Traditional Way Find Short Sale Candidate. Meet Owner & Collect Paperwork. Submit Short Sale Package. Follow Up To Get Package Reviewed. Attend BPO. Negotiate With Lender make numerous calls, wait on hold, send faxes and email. Market Property. Coordinate Closing. Collect Paycheck.

Why Work Twice As Hard For Half As Much? : 

Working With Us Average Price $400,000 *Min Commission (6%) $ 24,000 # of houses sold X 5 Total Commission The Old Traditional Way Average Price $400,000 *Commission (3%) $ 12,000 # of houses sold X 5 Total Commission *Some lenders restrict commissions paid actual realtor commission could be less. Why Work Twice As Hard For Half As Much? Example: Selling 5 houses with an average closing price of $400,000 $120,000 *GUARANTEED $60,000

Is Flipping Properties Legal? : 

The term “flipping” is used to describe a process in which properties are purchased and immediately sold for a profit. There is nothing inherently illegal or immoral about flipping properties. We operate with complete transparency and comply with Federal, State and Lender rules and regulations. We use back to back closings so that there are two separate and distinct transactions. Is Flipping Properties Legal?

How Do You Close Both Transactions On The Same Day? : 

Two Separate and Distinct Transactions. We close one escrow transaction after another in the proper order. Fully Funded Independently. We fund the first transaction with our own funds and not with funds from the buyer. Fully Transparent. Everything is completely disclosed to all parties and lenders involved. Comply with regulations. Seller receives no money or other consideration from the transaction. End buyer is a legitimate Buyer. How Do You Close Both Transactions On The Same Day?

How Do I Get Started? : 

Review our property qualifications below. Fill out our form below to get our Short Sale package and disclosures so you can start talking to sellers now. How Do I Get Started?

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