You can close your Short Sales with only ONE WEEK of work!
Ever wonder how much you earn per hour by the time you close a short sale deal? The industry has transformed from being extremely difficult without standardization to becoming streamlined with a specific system per lender. Many investors hate the idea of doing short sales because of the fallacy that they are so time consuming. Is this true…literally? Have you ever broken it down per deal? The time you actually spend on 1 deal versus the cash you earn is really quite exciting!
The market got tighter with fewer houses for sale, making it a Seller’s market. The Lenders slowed down their foreclosure processes, in my opinion, due to the Presidential Election. Now that the election is over, the lenders are going to be pushing really hard to get the foreclosures through.
I want to teach you a step by step process of how my students and I buy and sell short sales and the true time involved to make a profit of not less than $20,000.00. In this article, I am not withholding any secrets to my or their success.
Let’s Break It Down:
Step One: Find a Seller. Mail letters to a pre-foreclosure address list from a list provider www.ReiaFax.com. TIME: 4 HOURS
Step Two: Seller calls Student/You. Complete my Seller Information Sheet. Each question on my Sheet is crafted to pull specific information from the Seller that will allow us to creatively construct multiple offers (not just short sales). TIME: 3 HOURS
Step Three: Prepare Seller Paperwork. Go to your county website for ownership and correct legal description of the property from the deed on record. TIME: 1 HOUR
Step Four: Meet the Seller at the House. Be sure you take pictures, do an inspection on the property for repairs, have Seller sign paperwork and collect their financial information. TIME: 3 HOURS
Step Five: Send Seller Packet to Kimberlee Frank’s office. My office will process, submit and negotiate your short sale for you. TIME: 1 ½ HOURS
Step Six: Lender orders BPO (broker price opinion) or appraisal. Prepare BPO Package in advance, including repair bid, comparables, crime reports and articles. TIME: 2 HOURS
Step Seven: Meet BPO Agent. Be sure you arrive early and follow my 13 steps For a Successful BPO, as this is where many short sales blow up. TIME: 1 ½ HOURS
Step Eight: Call Lender for Short Sale Status. Receive counteroffers and reply back to bank with buyer’s highest and best offer. TIME: 3 HOURS
Step Nine: Short Sale Approved. Match approval letter with HUD Settlement Statement. Many costly mistakes occur because HOA dues and code violations are not approved or bank allowance is decreased on the short sale approval letter. TIME: ½ HOUR
Step Ten: Exit Strategy. As my Partner, we flip it to an end buyer or buy and rehab it. You will need to market the house for an end buyer based on your desired profit. You will hold an open house auction providing you with 30 to 50 buyers. TIME: 12 HOURS
Step Eleven: Prepare Purchase Agreement for cash end buyer. TIME: 1 HOUR
Step Twelve: Attend Both Closings. At the A to B closing, you purchase property from Seller, then at the B to C closing you sell property to end buyer. TIME: 2 HOURS
An average deal profit is $20,000 with 34 ½ hours invested, equaling a $579.71 hourly wage. So, completion of one short sale takes less than 1 week at a full-time job. Can you handle that? Just think if you pass the negotiating off to someone else like a title company who does the negotiating for free, what your hourly rate will be. Now just fill the pipeline and do it over and over again and just think how much money you will make. You tell me, should you be closing on short sales?
Come join me on December 13, 2012 at 6:00 p.m. to learn how I will give you a Power Push into 2013 allowing you to make a boatload of money with short sales!