Oh really? Just like any other sale? I beg to differ.
I’ve been an agent for a collective 10+ years. I’ve been working on short sales for about two years, but not as an investor until mid-2008. Working the A-B-C transaction is not at all like “any other sale”.
This is a sophisticated form of RE investing – it’s arbitrage. This biz is not for the faint at heart (you need a cast iron stomach to deal with the stress), it a LONG, LONG drawn out affair, dealing with finicky banks and power-hungy L/M’s; it’s not a piece of cake, as some SS gurus would have you believe, and you can waste hundreds of hours and make nothing in the end on a deal.
Just keeping up with the required updates for some lenders would doom the average RE agent, and many investors – I’ve had 5 Loss Mitigators on just one deal, been working on it for 15 months, and have never had a single soul say “yea, neigh, or maybe” to my offer. The file has been closed without reason or cause multiple times. They will do so without a moments notice to the investor/buyer on the deal.
No one likes to lose thousands and thousands of dollars, so a bank has an asset management committee to make absolutely sure that accepting a SS is their BEST course of action; it is NEVER their only. Some are easier than others, for sure. But to say a SS is “just like any other sale” TMCG, seems to be misleading for novices who are considering this area of RE investing. They will be in the valley of the shadow of death as an investor, and more often than not, discover the battle is much, much more difficult than they ever imagined.
Of course, maybe I’m doing it all wrong, but I’ve had many a veteran state that it’s complicated. Fortunately, it is a numbers game and if you’re working a lot of files, some will begin to pay off. IMO, a 67% success rate would be high.
So, if you’re not prepared to work the business nearly full-time (either as an experienced pro who can work the biz 20+ hrs per week, with a cadre of assistants processing the files, negotiating, resolving the problems, etc), prepared to devote hundreds of hours to studying what it takes to succeed, I wouldn’t even get started.
If it’s so easy and lucrative, why are SO MANY SS experts hawking programs instead of closing deals?
As for the average REALTOR, he/she doesn’t stand a chance to work these deals, as an investor. As a REALTOR with a retail buyer, sure. Yet many of our peers can barely handle a simple retail sale, let alone the complexity involved with arbitrage of a A-B-C transaction.
There is a reason the investor makes 3-10 times what either agent makes in this kind of a deal. They earn it. To believe otherwise is foolish.
“Money for Nothing” is a song; it is not reality.