How To Do Less While Making More In Real Estate

How To Do Less While Earning More, Legally and Ethically : 

How To Do Less While Earning More, Legally and Ethically Presented by Lou Patin President Leveraged Investments LLC

SUMMARY : 

SUMMARY Leveraged Investments LLC (“LI”) of Huntington Beach, California trains real estate agents how to improve their percentage of short sale closings and the profit per transaction based upon a system whereby the investor actually purchases the property in an independent, fully funded escrow and then rapidly resells the property in another fully independent escrow to an end buyer.

SUMMARY (CONT.) : 

SUMMARY (CONT.) Considering there are two complete, independent real estate transactions, the total real estate commissions are maximized when compared to a direct sale to an end buyer.

KEY PARTICIPANTS : 

Investor Short Sale Attorney Realtor®/Broker End Buyer “LI’s” business model is based upon a close working relationship between the investor who purchases and resells the property, our lawyer that provides the documentation to keep the transaction in compliance and the real estate agent/broker who markets the property to end buyers. KEY PARTICIPANTS

FAQ’s : 

Q1. When the real estate agent/broker finds a homeowner who needs a short sale, how does the agent/broker avoid a breach of fiduciary duty to the seller or risky conflict of interest? FAQ’s

FAQ’s (cont.) : 

A1. In the case where there is not an existing listing agent, the agent/broker should use the CAR Single Party Compensation Agreement (SP-11) identifying “LI” as the prospective buyer. This is the form used when presenting a buyer to a FSBO. Box 2.B.3 of the form should be checked stating that broker will act as agent for buyer. The appropriate agency disclosure form (usually the Seller Non-Agency Agreement, form SNA) is also provided to the seller. –CA. Real Estate Attorney Ron Ballard FAQ’s (cont.)

FAQ’s (cont.) : 

Q2. How does an agent/broker avoid a breach of fiduciary duty to the seller or a risky conflict of interest if the broker already has an exclusive listing agreement with the seller? FAQ’s (cont.)

FAQ’s (cont.) : 

A2. The most important point of this answer is understanding the difference in fiduciary duty when a property is upside-down (loans in excess of value) and needs a short sale as opposed to a property with equity. In a short sale, the seller will not be allowed by the bank(s) to receive any proceeds of the sale. –CA. Real Estate Attorney Ron Ballard FAQ’s (cont.)

FAQ’s (cont.) : 

A2 (cont). This makes the sale price irrelevant to the seller. The relevant outcome to the seller is avoiding a foreclosure on their credit record and having an orderly exit from the property. Therefore, the broker’s duty is to accomplish these results, as opposed to getting the highest price. –CA. Real Estate Attorney Ron Ballard FAQ’s (cont.)

WHY USE AN INVESTOR BUYER? : 

Typically 20-25% of short sale transactions attempting a sale to a retail end buyer succeed. The other 75-80% result in foreclosure and a failure of the broker’s duty to the seller because the prospective end buyer(s) are typically lost during the long, drawn out process of negotiating the short sale with the lender(s). All percentages are based on anecdotal evidence received by Real Estate Strategies Institute which obtained their information from real estate professionals. WHY USE AN INVESTOR BUYER?

WHY USE AN INVESTOR BUYER? : 

Benefits: California’s leading short sale attorney, Ron M Ballard, Esq. developed all of “LI’s” documentation and is in constant contact with us to keep us up to date with all the frequent legal changes in the industry, assuring that not only “LI” is legally protected but all of our Realtor®/Broker partners are protected as well. This alone, puts “LI” in a class of its own. WHY USE AN INVESTOR BUYER?

LEGAL UPDATE : 

As mentioned in our previous slide, Short Sale Attorney, Ron Ballard keeps us up to date with industry changes. It has come to our attention that, although not illegal, it is the opinion and recommendation of our attorney that we no longer have listing agents that already have an exclusive listing agreement with the seller, represent us (“LI”) as the seller on the resell transaction to an end buyer. This means the listing agent will ONLY represent the seller on the first transaction. This however will not affect your commission agreed upon. Subject to change upon notice LEGAL UPDATE

WHY USE AN INVESTOR BUYER? : 

Benefits cont… “LI” has a team of highly experienced negotiators to ensure the seller avoids foreclosure and obtains the best terms possible from the lender(s). Our negotiators know to make all efforts to negotiate a “Full Satisfaction of Lien” with no money required from the seller to bring to the table, as a part of the terms of our offer. WHY USE AN INVESTOR BUYER?

WHY USE AN INVESTOR BUYER? : 

Benefits cont… “LI” takes the time consuming, frustrating process of short sale negotiations from you to allow you to do what you do best, market for more business and reap the rewards of your efforts, as well as, provide a valuable service to your clients as a “Job well done” which = referrals =$$$ = Good nights sleep… WHY USE AN INVESTOR BUYER?

WHY USE AN INVESTOR BUYER? : 

Benefits cont… You, the Realtor®/Broker make a substantial, legal amount, of more commission on every short sale you complete with us with a substantial amount of less work. Free access to state of the art business management software that allows you to keep track of all your deals and keep your clients in the loop at all times. WHY USE AN INVESTOR BUYER?

Commission Structure : 

Commission Structure Preferred Scenario Bit more technical but still very profitable. Scenario #1 Listing treated as FSBO 6% Comm. Agreement with seller. 3% Paid to you as a buyers agent from lender. 3% Paid to list for us. 2.5-3% Paid to end buyers agent or you! Scenario #2 Home already listed in MLS. Lender pays 3% to listing agent. 3% to agent representing us “LI” “LI’s” agent list property for 1-3% comm. 2.5-3% paid to end buyers agent. Orig. Listing agent receives additional 3% at closing.

Call today to get started! (714)496-4365 : 

Call today to get started! (714)496-4365 Lou Patin Leveraged Investments LLC 17011 Beach Blvd. Ste. 900 Huntington Beach, Ca. 92647 www.LeveragedInvestmentsLLC.com