| "> | | | | for investors, make timing even more challenging |
| Things are rapidly changing in real estate | | | | to pull off a successful double close. |
| investment and smart, resourceful, | | | | 3. A Realtor must be utilized on the successful |
| pre-foreclosure investors are having their best | | | | investor's team as a way to generate revenue. If |
| year in 2008. Those investors who continue doing | | | | there's not the spread between the first |
| the same old short sale techniques hoping for the | | | | Department of Housing and Urban Development |
| results they got three years ago, will perish. | | | | (HUD) deal and the second, then a 3% |
| Investors resistant to change who take on the | | | | commission is better than a sharp stick in the |
| rigidity of the Sequoia tree will be forced to crash | | | | eye. Even on a bad month when your company |
| into the ground of financial failure by the changing | | | | does only four homes but gets the 3% |
| real estate winds. Smart investors are like palm | | | | commission on each home, with a sales price of |
| trees, willing to be flexible with the changing winds. | | | | $150k that's still okay! |
| They'll generate huge profits, adapt to the new | | | | 4. Education must improve. Short sale techniques |
| real estate market and increase their net worth | | | | must evolve. Let's face it; many of us (including |
| substantially in 2008 if they work with new short | | | | myself) loved the idea of doing short sales |
| sale techniques. | | | | because there were no tenant issues involved. It |
| There are two things you should know about the | | | | used to be, beat the price down on the |
| future of real estate investment. One, there will | | | | mortgage, sell it for a discount, try to make $20k |
| be more foreclosures this year than last and two; | | | | minimum a deal, rinse, repeat. In this new market |
| there will be fewer investors able to successfully | | | | we must branch out into other areas of real |
| complete a short sale. Based on this information | | | | estate, from managing rental properties to setting |
| I've created five Pre-foreclosure Techniques for | | | | up lease-to-own option properties in order to |
| 2008. Read them and keep them in mind as you | | | | survive and still make that profit. This branching |
| get to work in this new year ahead. | | | | out comes with a need for further education. |
| Five Short Sale Techniques for 2008: | | | | 5. Private cash is key. Having access to cash will |
| 1. Volume counts more than quality. Successful | | | | be vital for huge success in real estate. Investors |
| investors will see that their spreads per deal are | | | | can use this cash for a variety of reasons. |
| falling and to grow and continue at the rate they | | | | Successful investors will use it to do "transactional |
| are used to, they have to do more deals with | | | | financing." They will use it to buy a house that |
| less time. This will force investors to create | | | | they shorted because it is in need of repairs. |
| seamless systems or perish. | | | | Then, after they fix it, either hold it until they flip |
| 2. Double closings are on their last leg. There are | | | | or refinance and do a standard lease, lease/option, |
| creative short sale techniques to do options and | | | | or lease purchase. |
| there will always be a few "on the DL" title | | | | It is a clear indicator of weak and outdated |
| companies that might do them, but they are | | | | investment information if you are getting real |
| harder and harder to find. The perfect timing | | | | estate short sale techniques from some guru who |
| needed between getting short sale approval and | | | | isn't addressing the 'changing winds' of our |
| actually closing with your end buyer becomes | | | | economy, or at least mentioning them. |
| more difficult with a softening nationwide market. | | | | The idea of property management invokes |
| Plus, the pressure for those title companies to | | | | thoughts of repairs, vacant houses, insurance |
| conform will outweigh their ability to capitalize by | | | | issues, trashed properties and so on. It sounds like |
| being one of the few shops in town willing to do | | | | a chore to change your tried and true practices. |
| these double closings. The deep discount that | | | | However the practice of holding properties, |
| once sold your houses in a weekend aren't as | | | | getting Realtors on your team, setting up |
| alluring as they once were with the over abundant | | | | auctions, practicing aggressive marketing, and |
| supply of discounted options including Real Estate | | | | many other strategies and tools will need to be |
| Owned homes (REOs), other short sales, and new | | | | utilized in this soft nationwide market for a |
| build discounts on homes. This in combination with | | | | successful year in 2008. |
| tougher financing and less flexible loan products | | | | |