| Let's face it our existing real estate market is going to | | | | rewards that you are looking for. |
| be around for awhile. If you intend to be an investor in | | | | Property Managers |
| this market there are a few guide lines you need to | | | | The great thing about networking with PM companies |
| follow in finding and prospecting for short sales. I | | | | is that their clientele are obviously other Investors so |
| learned a long time ago that it's much easier to close a | | | | they do understand the investor world. Most |
| deal and earn the trust of a seller when the leads are | | | | importantly is most PM companies don't have a |
| referred to you or you're introduced to the seller. So it | | | | solution for their clients when the clients are having |
| goes without saying your best leads are referral from | | | | trouble keeping the property and are facing |
| a friend, family member generally someone you know | | | | foreclosure. When the PM Company can offer you |
| including your local real estate professional, especially, if | | | | and your services to these investors it provides value |
| they specialize in the REO, Short Sale and Foreclosure | | | | to not only the PM Company but also the client. |
| markets. However, these are not the only avenues in | | | | Real Estate Professionals |
| finding good investment properties for you. Let explore | | | | Searching and finding the right real estate professional |
| some of these prospecting areas. | | | | can be a frustrating endeavor in itself. Yes, there are |
| Personal Referrals | | | | many real estate agents in your area, or use to be, but |
| Absolutely one of the best ways to locate a good | | | | finding the right one who specializes in REO's and |
| short sale. Someone you know who knows another | | | | Short Sales can be a time consuming. You need to |
| person that is having problems with their mortgage | | | | find a busy buyer's agent, not one that only closes a |
| lender and can refer you directly or introduce you in | | | | few deals per year, but one that knows how to locate |
| person to the party having the mortgage problem. | | | | the REO's and short sales in his or her effective |
| They are in a position to stop making payments on | | | | market areas. There are many ways to search these |
| their mortgage or have missed one or more mortgage | | | | listings out of the MLS and a good real estate agent |
| payments. You are there to help them with a short | | | | will have his home finder computers programmed to |
| sale thus saving them from a possible foreclosure. | | | | locate and send these listings to you in a timely |
| Yes, it's possible for these people to call the lender and | | | | manner. |
| to request a loan modification. And, some of them do. | | | | Many REO's and Short Sales are now being |
| Many of these loan modifications end up back in | | | | purchased by many of the first time buyers that are |
| trouble and have to be bailed out to forgo the | | | | savvy buyers using their real estate professional to |
| foreclosure. In a recent short sale that I handled both | | | | locate and show them these properties. However, in |
| the husband and wife lost their jobs and were having | | | | either case after you submit an offer on these |
| trouble finding jobs. There was only one way we could | | | | properties there will be a long wait until the bank gets |
| help them and that was with a short sale. However, | | | | to your offer and starts it's processing. My latest is in |
| you are limited to the amount of referrals you are | | | | its 3rd month sitting on one of the bankers desk. The |
| going to receive this way so if you're in this game for | | | | positive side to this is that if you can wait, more than |
| the long haul you're going to have to search other | | | | likely you will be able to get a real good deal on one of |
| ways to find these properties. | | | | these properties. How do you find these agents? Well |
| Farming an Area or Neighborhood | | | | the first thing I would do is check out some of the local |
| Many of my real estate cohorts will probably slam me | | | | agent websites to see if they mention anything about |
| for telling you this one but it is how many of us find | | | | investment property, specializing in REO or Short Sale |
| listings and it's a great way for you to find sellers who | | | | property. |
| are in trouble and have not searched for answers to | | | | They don't necessarily have to be the REO or Short |
| their mortgage problems. This form of marketing is a | | | | Sale Listings Agent. All they have to know is how to |
| system you must develop in a specific geographical | | | | find the properties in the MLS, determine the existing |
| area usually in a neighborhood where you will be | | | | property value on them and understand how the short |
| specializing in. You will have to put together marketing | | | | sales process works or understand what the banks |
| materials branding yourself as the area short sales | | | | are looking for when they sell their REO's. Then, find |
| expert. Monthly mailers and door to door contact is | | | | out how many buyers or investors they have worked |
| necessary. You will also have to leave brochures and | | | | with successfully in purchasing these great properties. |
| fliers at local business where these neighbors will see | | | | Real Estate Investment Associations |
| your information. | | | | You can also associate yourself with a local REIA |
| In order to do this you will have to present yourself as | | | | (real estate investment association). At these meetings |
| the one person that has the knowledge and expertise | | | | you will find lots of information and investors that have |
| to help them through the short sale process. You will | | | | properties that need to be purchased. You'll also find |
| have the buyers or investors in place. You know how | | | | Hard Money Investors for your deals along with some |
| to negotiate with the banks and have all your | | | | excellent networking possibilities in finding REO's and |
| paperwork ready to go when the seller says let's do it. | | | | Short Sales properties. I leave you with one parting |
| Branding yourself this way means that you should | | | | thought and that is to find your right investor comfort |
| have testimonials to show the sellers and past sales | | | | zone and stick with it. With a well planned and |
| explaining how you helped sellers through these Short | | | | systematic search you will become the expert in your |
| Sales experience. It will take some time to penetrate | | | | area for finding these great investment properties. |
| this local market but when you do you will reap the | | | | |