Realtors and Short Sales...

Foreclosures, Short Sales, Tax Foreclosures
1

okay, im sure this is sure to start a flame war, but let’s talk about real estate agents/brokers and short sales. 99/100, no make that 100 out 100 deals we tried working with realtors on died, fell apart,went to foreclosure. Heres why

Realtors have one thing in mind: COMMISIONS. thats fine, thats how they make their living, but guess what, the days of just showing up and “showing a house” and its countertops and hardwood floors and then sending a fax and receiving a commisions check a few weeks later ARE LONG GONE!!!

In todays environment you have to WORK. that means not spending your days at the coffee shops, or eating cookies and snacks at open houses, or going to seminars and trainings. that means WORKING YOUR DEALS TO GET THEM CLOSED!!!

nothing frustrates me more than RE agents who say they do “short sales”, yet when I ask them about their process or package or experiance, they say “well, i dont know, I just see what closes”

See these agents just take on a deal from a client, and let’s just say they owe 300,000 on the house. maybe the actual true market value is 250,000. so the agent puts in a short sale offer for 235,900 and thinks thats a good deal!!! ITS NOTTT!

then it just sits and sits and sits, no buyer. what they need to do is WORK and put in the short sale offer at 110k, and actually NEGOTIATE the deal with the bank. THATS WORKING FOR YOUR CLIENT!!! makes me so mad!!!

they wont do that because it affects their commision, so these properties NEVER SELL and go to foreclosure, real good for your client there agent. guess what, got news for you? THE SELLER CAN’T RECIEVE ANY FUNDS FROM THE SALE ANYWAY…SO WHATS IT MATTER?? JUST SELL THE PROPERTY NO MATTER WHAT IT TAKES!!!

Our deals we find on our own, never been listed on the mls, fresh, clean slates. the sellers are cooperative, we submit, negotiate, close and buy the house. no realtors to deal with, no brokers with their hand out wanting money for something they had no part in. none of that.

See to actually close short sales, you have to be 100 percent COMMITTED to the process. you have to have a clean, concise, professional packet that will get the attention of the person at the other end of the bank. you have to have all your information, supporting your offer, you have to actually NEGOTIATE the deal. thats the name of the game here. Realtors dont have the patience, the dedication, or the know how to do this. I CANT TELL YOU how many realtors have come to us asking for help or for our program “secrets” or if we can negotiate the deal for them. Nope, sorry, not gonna do all the work, and you get a commision, why the HELL would we do that? either learn how to do short sales, call the banks, communicate, get updates, work the bpo, be active, or…you too will be in foreclosure. (which happens alot to realtors here, calling us to do their OWN short sales).

okay, im done…

ps: i KNOW not all realtors and agents are like this, but honestly, 99% of the ones we came into contact here are. its uncanny. we keep “giving them a shot” and sure enough…it fails, or goes bad, they get mad because we are contacting the seller, or they dont like the documents and disclosures we use or “thats too low of an offer”,blah blah blah.

:banghead :banghead

2

Hi,

 Well what do you expect if your not willing to interview and check references on a real estate agent before you use one, the reality is most of these agents have 40 hours of class room training before they take there state license test and very few persue additional education and most don't gain expertise working with investors because there typical client is a retail owner occupied buyer!

Only maybe one in 10 agents have any experience working with investors so you have to reject 9 in order to find a tenth worth working with and training / grooming to your investing style. I don’t just turn the agent loose even if they worked with Donald Trump for 30 years, I have my own unique investing style and my own way of determining risk and reward.

I calculate my expense / profit and margins differently than other investors, my experience allows me to see things and tweek the deal according to my understanding of the property! I want to work with and teach my real estate agents what I look for, my approach, how I base my calculations and my intentions for the property based on my method of investment.

Don’t jump into real estate believing any real estate agent knows what it takes to make your deal, they need supervision even though they are the 1 in 10, you interviewed them, checked there references, talked to there broker, quizzed there previous clients and talked to there piers they still need to be trained to your unique style of investing.

                    GR
3

Hotdamnshortsales, In a few simple words I COULDN"T AGREE WITH YOU MORE, we do however assign our own realtors who know how to work with us. GR good reply. Herbster

4

yes, at first we just started with any realtor we thought was “good”, then we started realizing their lack of commitment, knowledge and they exageratted their success. So we started digging deeper, asking more probing direct questions, and still a goose egg. So, to make it easier, we are getting our brokers license, then we dont have to deal with them, and we can make even more money by finding, negotiating and selling and closing the deals ourselves. thanks for the feedback, and I KNOW not ALL realtors/brokers are bad, but wow, its just amazing how many I talk to, brokers especially that say “how do you do it”, they offer to pay us to come teach their realtors, but quite frankly, we dont want to! we could make thousands of dollars traveling around sharing our strategy, techniques, documents,relationships, etc. but we had to learn the hard way and if someone is serious they come to us and show us that by being commited, hanging out with us in our office, asking questions, doing whatever is asked of them, etc. Sending in a contract or a hud with a sales offer to the bank is NOT working hard. ok see yall

5

Because of the recent economic crisis, as rising unemployment and falling house prices across the country, a number of short sales is increasing. Since short sales usually cost the lender less than foreclosure, may be a useful way to minimize losses to the lender.

6

:banana Commissions are not the only thing on a realtor mind…WHEN YOU FIND AN INVESTOR FRIENDLY ONE… :banana

7

Some agents are better than others. Very few are good working with investors. It is best to find one that is also an investor as they will see it from your perspective. Who cares what is owed or what the asking price is. It is what it is worth and what someone is willing to pay. Now, if you write the offer with the listing agent then they will double end the commission. I recommend talking to a ton of agents until you find some that are on the same page. Most will be complete time wasters. Be very direct and demand the same honesty back.

For example, I tell agents what I am looking for and explain that I will only buy at max 70% LTV is decent areas that also cash flow. Then they send me a bunch of crap and use these slimy sales techniques. It enrages me because I just told them exactly what I am looking for and the exact information I need for them to make a sale and commission. Then they insult me with their pathetic sales techniques that they learned in a meeting. We are investors, we make informed decisions not emotional ones. Luckily my agent is the man and understands exactly what we look for and what info we need to make a decision. We hope to do 20 deals together this year.

8

I have closed 15 of these “short sales” last year with a 75% closing ratio. I am not sure where you are getting your info and stats.

9

Nationwide less that 2 in 10 short sales actually close. If you use a realtor that actually does short sales the ratio is 60% and there are realtors with a 75% closure rate a rate approaching normal sales. The difference is that short sales don’t work. The system inside a bank is designed to stop it from happening. What makes the difference is to know the right people at the bank. We think of a bank as a place to do business but actually a bank is a 50 story building with each floor being 20,000 sqft of cubicles with kids taking the next call waiting for the next coffee break. They have no idea what the bank is doing. They are answering questions based on what pops up on their computer screen in front of them and there is no pop up that says accept this short sale offer. You can’t go in the front door and do a short sale. When you interview the realtor find out if he has done short sales before. I mean he has done a lot of them. Look for 10, 15 or 20 of them done in the last year. Not worked on 2 or 3. That person will be able to get your short sales done.

10

Very good advice Bluemoon, good stuff man. Much appreciated!!