How to work short sales for Profit – Part 1
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I wanted to write this to discuss a little more about short sales and the business model so that those of you that are looking to get into short sales and help homeowners who are facing foreclosure to STOP a foreclosure thereby saving the property owners credit, dignity and embarrassment.
The most important part of the short sale business model is the negotiator and the broker’s price opinion (BPO). The reason why i think the negotiator is the most important job in the short sale business model is that negotiators must be an artist and be able to keep communications open between Realtors, the BPO agent, the listing agent and the funding source as well as the referring source that is giving you properties to process.
Short Sales Model
Acquisitions –> Negotiator –>BPO Agent –>
Listing Agent –>Transactional Funding –> Title Company
It is extremely important to have your negotiations in house and not outsourced. The biggest reason is because that it is easier to have better communications to all of the people in your different departments. So if you have a funding problem and the transactional funding company need details, the negotiator will have all of the information. If the listing Realtor need to have details about the concessions or need to know how soon before the approval should be here, the negotiator will have this information.
If you’re brand new to real estate investing the first thing you will want to get is a deal right? You know and actual deal that is a short sale. So this means that you need to have some marketing strategies in place. You should have some direct mail marketing going, posting Craigslist ads and other internet marketing, T.V. and radio ads, door knocking, cold calling and possibly press releases talking about your services.
Once you get leads coming in, that you need to have a presentation person that you hire or maybe its YOU that makes the presentation to the property owner to show them how to use a short sale strategy how to move through the foreclosure/short sale process. This person must be good at listening, presenting the solutions and answering questions and truly care about helping the property owner resolve the foreclosure.
My next blog post will address in more detail the short sales business model.
