Can You Answer This? What’s the #1 Thing Holding You Back?
Apr 26th, 2008 | By cboatright | Category: Short Sale Questions
I have a queston for you.
If I can get you to answer it honestly, it will help others come forward and speak up too.
It is really a simple question, but involves you to REALLY think about it. I want the COLD-HARD-TRUTH from you. Don’t sugar coat or say some type of convenient answer. Tell me straight…OK?
What is the NUMBER 1 REASON why YOU haven’t done a short sale deal?
I’m looking forward to your answer.
Click the comment button now.
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1) I have an unnatural fear of people rejecting me—makes me shiver to think about it
2) I am afraid of making a mistake and ending up owing a lot of money.
3) I have no money to waste and don’t understand what costs are involved.
4) This is all aided by my natural(or maybe normal is a better word) instinct to procrastinate.
I know you ask for 1 reason and #1 is probably the major reason.
There I bared my soul and I’m still shivering.
Can I be helped?
I have not been able to raise the capital to pay the lender’s short sale.
cory if i just could find good perforecloure leads would seat me in hi cotton besides the one’s from the court house they are a dead horse can’t not get no response from them and have the monye for a day that you talk to richard blocker a bout that’s all i need and you to teach me evey thing you know about shortsale foreclosure i have been sending post card out in the mail and built the web page and still not getting any call so i hope that you have something out there that will trun this a round for me soon i can’t keep on spending monye with out some thing start comming in soon this is not good a tall not making no monye from this and I am not afraid to go out there do the deals if I just could find them to do I have talk to real estate broker to and I belong to the real estate club here for investor So i hope something happen’s soon Date 4,27,08 . John w Reynolds at greasytire@yahoo.com or http://WWW.VETandR,com
#1: the banks simply will not accept an end buyer’s offer, despite the fact that it may be the only offer and one that is very reasonable given the alternatives.
Here are some more reasons, not that you’re asking:
- No end buyer offers on a listed short sale
- End buyer can’t qualify for a loan
- Realtors are not listing or showing short sales as much as most don’t close and are a waste of their time
- More and more buyers are making offers on REOs. Unless someone totally falls in love with a home, why would you go through all the BS on a short when you can make an offer on an REO and have an answer in 48 hours?
You want some more (LOL)?
Matt
My greatest fear is 1. when they ask me to fax a proof of funds letter &
2. Finding a buyer in time
3. Having more than one exit stradgy
First #1 reason: I have a difficult time creating HUD 1’s for the bank.
Second #1 reason: I’m fussy about which deals I do.
Third #1 reason: Our site is very old and in need of updating in order to capture the attention of our users, however, people are still filling out our forms on a regular basis and our lists continue to grow.
Fourth #1 reason: I want a team to work with
Fifth #1 reason: I want Infusion
Taking into consideration that I gave you five number one answers, I’d have to say the real number one issue is the HUD 1 because I can’t count!
As I write these out….I see each one of them as excuses. I have 15 pre-4 letters I’m mailing out today and I’ll get over half to respond because of the kind of letter(s) I send. Good percentage for our little area. How many of those will I actually do? Maybe two…..IF I can find someone to help me with the HUD prelim that is….if not….I’ll refer them out like I normally do….and that’s sad. The bright side is, I have a very good name in this area with other investors who like experienced bird dogs. (SIGH)
In short….if you can’t do them for yourself, do them for someone else and still make a bit of pocket change. LEARN to do short sales for yourself (HUD 1 included) and OVER COME FEARS so someone else make your pocket change!
Everything else is a piece of cake in my short sale process…..this must be what phycs call a mental math block.
For me, I would like an expert to go through (or to be available for questions) one short sale from start to finish…I know it doesn’t come for free. I know all short sales are different but once I have one under my belt I believe I could go from there.
For example, I have yet to fill out a HUD-1 correctly for my offer on each deal. If I can be shown how it is supposed to be done with a few different scenarios it would help greatly.
Is this an “off the wall” thing to say?
I think I have pieces but not the entire puzzle put together.
I saw this thread and was wondering…why do we have two investors having issues with getting their estimated HUD statements drawn up?
I’ve NEVER drafted my own HUD. I would consider this to be a time waste and dangerous to boot. I call my title company and ask them to pull pre-title for me. Then I tell them that this deal is a short sale and I’ll need an estimated hud based on a purchase price of X and a closing date of Y.
I tell them to call the county and make sure there are no back taxes. If there are, they know to put them on the HUD. They stamp an “estimated” watermark on it and email it over to me for submission to the bank.
If the bank requires and changes I give them a call and ask for an update. They send it. When the deal closes they are going to get the title policy and probably the buyer’s closing fee as well. They get paid to help the deal close. The fact that they take care of me in this way is why I do business with them. If they did NOT then I would take my business elsewhere. One title company in my area that wants me to work with them told me that they’d negotiate my entire short sale FOR me for FREE!!!!
Why did I not take them up on it? Because I don’t know if their new short sale negotiation team is any good and I’m not going to put my sellers in the hands of someone that I don’t trust…otherwise I would have.
Anyway…investors need a good relationship with a good title company that can do your short sale HUDs for you.
Wow……. Thank you very much for your response to my pitiful rendition of “Whaaaaa”. I honestly can say I never thought of that, but since receiving your message I have contacted my title company who nearly laughed at my ignorance. Now, thanks to you, I am the laughing stock……
Just kidding….I was saying….thanks to you I WILL make money in short sales business and feel confident about the entire process instead of thinking ’stuck’ long before even making it to the HUD. Nice. I’m a happy investor.
K
I’d say the reason(s) why I’ve yet to move on doing a short-sale is believing in myself that I can do the work needed to get a deal closed and closed somewhat quickly.
Sure, I sometimes feel that I may make a HUGE mistake and wind up with a property that I just can’t off-load and then need to file bankruptcy becaues I can’t make the payments on the house…but at the same time, I beleive that I’m anal-retentive enough to know whether or not the deal ‘makes sense’ before even making an offer.
I also fear that perspective homeowners will not take me seriously when I go to meet with them because I’m so ‘green behind the ears’.
I also lack the self confidence in putting out the needed money, which I do have, in setting up my business, to get things rolling…even though I’ll more then bring back TEN TIMES the amount needed when I close on my first deal.
Not sure I have any other fears that are taking away from me ‘taking action’, but for now, these are the most profound ones I over-analzye on a daily basis.
Ray
The only thing holding me back is I need to find out how other investors are closing their wholesale short sales in nj where I am. This state is very strict and the title companies I have spoken with dont want to hear about double closings or simultaneous closings. One woman I chatted with only deals with investors who have cash or hard money. But Ill have to see . I feel confident about every other aspect of the short sale.
Hello All,
Some encouraging advice: Face the fears you have. Yes, it sounds so simple, yet we both know that it much harder to take that action. Once you take that action and face your fears, you realize that it was not as bad as you “thought “ it would be. You’ll even look back those moments and laugh at the fear you built up in anticipation of that first meeting, first answer, first “pull the answer out of your…”, first mistake, fifth mistake, tenth mistake, first hostile person, third tough tied and so on. What you need to remember is 99% of these homeowners are truly “Motivated” and they need your help. They will listen to ANYTHING you say, and they will SIGN anything (some might even sell their soul – but I do not recommend you take up that offer).
We have a fellow investor we work with and he was completely up in arms about having a homeowner sign a durable power of attorney (not just a limited – a durable give you complete control of their lives and yet, they sign it with a smile on their face). He felt that it was too much power and did not want to put the homeowner in jeopardy (hmm, aren’t they already?). His fear was big over this little thing. Now that we have done a few, he looks back at it and laughs. He has no problem having someone sign a POA or any other type of document. Remember, these documents are to protect us as investors, help the homeowner and ultimately, get the deal done; which serves the distressed homeowner one way or another, not to mention, they sometimes disappear!
Back to the fear: Our first meeting with a homeowner, we did everything wrong and we didn’t know all the answers, and yet that homeowner signed everything. The homeowner even said he would give us all the new refrigerator, washer, dryer, and dishwasher if we would just solve his problem! The mistake we made afterward? We should have taken the appliances upfront because we could never get a hold of him afterwards (he wanted us to take it – I offered to pay for it but for honor, I choose not to take it for free until we upheld our promise). Lesson? Take the stuff! Get all the paper work signed, get everything upfront. Be stern (it works).
We made several mistakes on the way and, yes, we learned from each one. You have to make those mistakes. You need the practice. You need real world experience so when the great deals come by, you are truly ready! One 10K mistake we made changed the way we do everything, and we look back at it as one of the best mistakes we ever made. What was this change? Get the house under contract no matter what. We also added software to help us do repair estimates and the offer generator (3 offers). People have a hard time arguing with a computer spitting out repair estimates and offers. Homeowners will actually help you make the correct offer when they are show the true holding costs – they have a “ah ha” moment and “I didn’t realize how much repairs and costs involved to buy the property”. We even had several people cry because we could not make a cash offer when the software came back “bad”. We help relieve their concerns with the ShortSale option (one of those criers, we bought their house though shortsale!). Lesson: Mistakes are good.
Go out there and practice. You will laugh at the moments of the mistakes, feeling of not knowing all the answers, and feeling of embarrassment. After our first homeowner experience, all our fears went out the window and today, we visit distressed homeowners with confidence and mentality “they need our help and we can help.”
Tips:
1: Learn how to do repair inspection with numbers to help you justify the repairs (can be a price list, an excel sheet). Go to your local college and take the 3 day inspection class for $60. Try http://www.peteyoungs.com for rehabbing. Even if you will not do rehabs, it helps you know what to look for and how to price repairs. Try the National Repair & Remodeling Estimator from http://www.Craftman-book.com
2: Learn to build rapport with people. Your first 10 minutes with the homeowner should be talking about them. Ask them questions about their lives. Find things to talk about. Look around their house and find something to talk about. There are tons of books out there how to build “instant rapport” with people. It works! This is why we get every single deal under contract even one from our friendly competition. We responds quick, we build rapport, we offer solutions, we make them feel comfortable with us, they trust us, we are honest and honorable, and they always pick us (even one from Cory, grin).
3: Never stop learning. Go buy books, borrow books, go to the library. You need to ingest everything single thing you possibly can all the time – even on the toilet, you should be reading books about Real Estate, self-motivation, self-improvement, basket weaving! Yes, the toilet is a learning machine. I have made hundreds of thousands of dollars from the education I got from sitting on the toilet (just don’t share those books! See Seinfeld). Go to seminars, attend your local REIA, visit REIA forums, and network, network, network! Build those relationships – you never know how valuable they will be until you need them or they land in your lap! Opportunities arrives for those who prepare.
4: Get Cory’s Shortsale Fundamentals! I’ll even sell you mine! Cory is a great resource of information and he’s out there doing it! I’ve seen lots of other shortsale courses and they don’t come close to Cory’s. Fellow investors big and small agree with this statement.
5: Market like crazy. We use hand written envelopes with cute stamps (no plain Jane stamps, use something cute). Do several hundred like this for awhile. You can hire someone to do this for you. We got smart and use special hand writing software that prints the envelopes on a high speed printer, the text is not just cursive but special enough to make it look close to hand written letters (each letter next to each other links together and changes). We got even smarter and got an envelope folder (these are expensive unless you know how to negotiate one for free! ). Which brings us to tip 6
6: Always ask. If you do not ask you never know if you’ll get it. Do not be afraid to ask for something. It is true, “be careful of what you ask for as you just might get it.” I asked for a auto disk formatter for free, to only trade it for a envelope folder…all by asking! 3.5 auto disk formatter worth $50, Envelope feeder worth $1000. Learn this and you’ll be good at negotiating with homeowners, investors, loss mitigators, and maybe even getting a discount on Cory’s system, grin!
7: Go out and do something. Take action. Make that phone call, practice with your partner, make a few mistakes, and always FOLLOW UP! Tip: keep a smile on your face when talking, it will boost your inner self and you’ll sound friendly/happy to the other person on the phone (I learn this from a friend who is a radio personality at the biggest radio station in the US).
Last lesson: Dream build! Go look at that sports car you want. Look at that dream home. Get that yacht and Robb Report magazine. Put that picture of your dream on your refrigerator, bathroom mirror, in your underwear drawer (make it personal!), and anywhere else you are reminded why you are doing this.
Looks like I have an appointment with my underwear drawer.
Thank You,
Ron Harris
Ronn Properties, LLC
ronn@ronnproperties.com
http://www.ronnproperties.com
“Turn Virtual Reality into Real Estate”