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How to Maximize How to Maximize Your Success Your Success with Short Sales with Short Sales Get Paid Multiple Times from Your Short Get Paid Multiple Times from Your Short Sale Listings While Doing Less Work Sale Listings While Doing Less Work Presented By: DynastyWealth, LP

Short Sales Made Easy

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Short Sales Made Easy - In this presentation we discuss the common pitfalls of short sales and how to avoid them.

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Page 1: Short Sales Made Easy

How to Maximize How to Maximize Your Success with Your Success with

Short SalesShort Sales

Get Paid Multiple Times from Your Short Sale Get Paid Multiple Times from Your Short Sale Listings While Doing Less WorkListings While Doing Less Work

Presented By:

DynastyWealth, LP

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© DynastyWealth, LP

Part 1: Introduction to Short Sales

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© DynastyWealth, LP

What is a Short Sale? What is a Short Sale?

“A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property”

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Why Do Lenders Consider Short Why Do Lenders Consider Short Sales?Sales? Lenders are in business to loan money, not own

real estate If a lender forecloses the value of the loan

contributes to their insolvency Foreclosures cost lenders time and money The short sale offer is equal to or greater than

what a lender can expect to gain by foreclosing and selling the property

Property is left in an “unsellable” condition.

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Current MarketCurrent Market

How many agents have short sale listings?How many agents have walked away from

short sale listings?How many agents have successfully

negotiated and sold short sale listings?

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Did you know…Did you know…

Average broker or agent closes 10% of the short sales they attempt.

Foreclosures are at an all time high.70% of all Homes sold will be sold as a

short sale (83% of homes listed in the MLS are short sales)

If you are not working with short sales, you are missing at least 70% of the market.

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Who We AreWho We Are

Professional real estate investors. We are a capitalized private investment partnership that specializes in commercial and residential investment real estate

In the real estate investment business for over 6 years, and successfully negotiating short sales for over 3. 25+ years of real estate experience.

In good standing with CA Department of Corporate Affairs and FINRA

Orange County’s Only Luxury Home Short Sale Specialists™

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Our GoalOur Goal

Our Goal is to create a Win-Win-Win:– Homeowner – will avoid foreclosure– Lender – will liquidate their non-performing

asset.– You – will get paid your full commission

without negotiating the short sale, and you’ll help the homeowner avoid foreclosure and get referral business.

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Why Do Short Sales?Why Do Short Sales?

Properties will sell faster if priced properly (Price Discovery)

Seller avoids foreclosure on their creditEstablishes you as the solution providerSeller will refer other clients to youYou provide value to buyersGenerates income in a slow marketHelps stimulate local economy

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Options for Listing Overleveraged Options for Listing Overleveraged HomesHomes1. Turn them down because they won’t sell2. List the house at a price that is overpriced

to cover all payoffs and closing costs3. List them as short sales and do the short

sale negotiations yourself, wasting your valuable time

4. Use a qualified cash buyer to handle the negotiations, and create additional income without extra work

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What you’ll need to learn to What you’ll need to learn to negotiate Short Sales successfullynegotiate Short Sales successfully How to get your short sale assigned to a

mitigator immediately What a bank mitigator looks for in a short sale

package, and more importantly why they put a file on the bottom of the pile

How to negotiate with lenders depending on what type of loan your seller has

How to negotiate Fannie Mae, Freddie Mac, FHA, VA, USDA and conventional with PMI

How to get junior lenders and IRS liens released from properties

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But wait… There’s more…But wait… There’s more… How to get the deal done when a lender wants

your seller to sign a promissory note or deficiency judgment (Even though CA is a non-deficiency state)

How to get the bank to approve every file by getting the BPO value on the property where they need to see it (99.9% of agents don’t know the “Kiss of Death” with BPO’s)

How to structure the deal when the lender says that all junior lien holders can only get $1000

If you don’t know this information, 90% of your deals will be declined and you will waste your time

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What if we could…What if we could…

GUARANTEE your commissions on short sale transactions (upon closing)

Give you back your time… 10-20 hrs./wk. Solve your clients’ foreclosure issues which

could enable you to work with them again Provide a safety net so your short sale doesn’t hit

any landmines during the process Eliminate the costly and time consuming

learning curve of negotiating short sales like the pros

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© DynastyWealth, LP

Part 2: Actual Case Studies

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Sample DealsSample Deals

Lien Amount Payoff

1st Mortgage 961,246 765,000

2nd Mortgage 99,000 25,000

HOA Lien 10,500 6,000

Total 1,070,746 796,000

Total Discount 274,746

Total Realtor Commission $47,760.00

Total Realtor Commission Without Us $0.00

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“… “… You went above and beyond You went above and beyond helping us out.”helping us out.”

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Sample DealsSample Deals

Lien Amount Payoff

1st Mortgage 865,074 675,000

2nd Mortgage 176,731 10,000

Total 1,041,805 685,000

Total Discount 356,805

Total Realtor Commission $41,100.00

Total Realtor Commission Without Us $0.00

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““You and your team of specialists You and your team of specialists have relieved me of a… financially have relieved me of a… financially and emotionally burdensome and emotionally burdensome ordeal.”ordeal.”

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Part 3: Team Up With Us

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How We Work TogetherHow We Work Together

You provide introduction to seller/client We discuss process with seller and take care of

all paperwork We build the case for negotiation We submit the offer(s) to the lender(s) We negotiate a settlement with the lender(s) You continue to market the property and secure a

buyer while we are negotiating We pay off lender(s) and close with buyer Title Company sends you Your Commission

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Providing the Introduction to the Providing the Introduction to the SellerSeller A cordial introduction to the seller is essential to

our success for you. When speaking with the seller, keep your

conversation general Answer the questions that you feel comfortable

answering but defer the rest to us (this gives us a reason to meet with the seller)

Highlight the fact that you have aligned yourself with a company that specializes in short sales

The initial conversation with the seller can take place on the phone or in person

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We discuss the process and take We discuss the process and take care of all the paperworkcare of all the paperworkWe will discuss the entire process with the

sellerWe will verify that we have addressed all

their questions and concernsWe have them speak with you without us,

to make sure they feel comfortableThey can seek legal counsel or a CPAWe will collect all of the short sale

paperwork from the sellers

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We build the case for negotiationWe build the case for negotiation

ComparablesInspection ReportInspection EstimateSellers HardshipSexual PredatorsLocal ArticlesDays on Market

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We submit the offer(s) to the We submit the offer(s) to the lender(s)lender(s)Starts the negotiation process with the

lenderBased on estimated sale price as provided

by listing agentOffers incorporate repair estimate

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We manage the BPO/AppraisalWe manage the BPO/Appraisal

We will meet the BPO Agent/Appraiser at the property

We provide a proven and tested BPO package to Agent/Appraiser.

We use a proven and tested strategy to influence the BPO to the best of our ability – from the very first phone call to the submittal of the BPO

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We negotiate a settlement with the We negotiate a settlement with the lender(s)lender(s)Mortgages, HELOC’s, HOA, IRS,

Contractor LiensRequest Full Satisfaction of Liens for your

SellerPlace appropriate verbiage in MLS

(approved Short Sale)Approvals ExpirePlanning for closing is critical

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You continue to market the You continue to market the property and secure a buyer while property and secure a buyer while we are negotiatingwe are negotiatingListing stays with Listing AgentListing price reflects the BPO valueBuyer must be prepared to close upon

short sale approval

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Why Partner With Us?Why Partner With Us? We are a local company You can get Multiple Commissions on One Property You keep the listing with a guaranteed commission when

the property closes New buyer spin-off business from seller that you were

able to help out Credit restoration provided for your seller which will

allow them to purchase a future home. Potential sale opportunity for you

We are a capitalized investment partnership in good standing with the CA Department of Corporate Affairs and FINRA.

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Commission StructureCommission Structure

You earn your full commission:– 6% Paid Commission

3% Paid as Listing Agent for listing3% Paid as Buyers Agent for end-buyer

– 1%, 2%, 3% Bonus paid at closingVolume incentive structures

– Referral Fee .25%, .50%, .85% based on volume of deals

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The “Old” Way of Doing Short The “Old” Way of Doing Short SalesSales

Old Way of Old Way of Doing Doing

Short SalesShort Sales

Listing AgentListing Agent2.5% Commission2.5% Commission

Buyer RepBuyer Rep2.5% Commission2.5% Commission

Total: 5%Total: 5%

Lender cuts total commission to 5%

Your valuable time is wasted negotiating deals (50 to 100 hrs. per deal).

Buyer backs out 50% of the time leaving you to “scramble” to find a buyer

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The “New” Way of Doing Short The “New” Way of Doing Short SalesSales

We guarantee 6% commission with potential for 9%– 3% paid as Listing Agent– 3% paid as End Buyer

Rep.– 3% paid in Bonus (10+

deals) Our Professional negotiation

teams deals with bank so you can invest your time in growing your business.

We are the all-cash buyer

New Way ofNew Way ofDoingDoing

Short SalesShort Sales

Listing AgentListing Agent3%3%

End Buyer RepEnd Buyer Rep3%3%

Volume BonusVolume Bonus3%3%

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How do we get paid?How do we get paid?

We purchase the property for the negotiated debt from all lien holders and then sell the property for a higher price (sometimes called the “spread”).

We earn our money on the resell of the house

Our incentive is perfectly aligned with yours and your seller

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FAQFAQ

What’s your track record?How do I know you’ll be successful our

close? Can you guarantee you’ll close?

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How do we get started?How do we get started?

Contact our partner that sent you this link… and we look forward to working with you on all your luxury home short sales!

Let’s sit down and talk about any short sale deals you’re working on right now.

If you have any questions, contact the person that sent you this link