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Real Estate Prices Dive Again as a Flood of Homes are Repossessed by Banks
Mark Bradley reveals the 5 steps that should be considered by anyone wanting to invest in short sales. These steps the truth of how difficult the short sale process actually is, so investors can refocus on bulk REO real estate.
By: Mark Bradley
Short sales, the buzz word of 2009 and 2010, has become such a common occurrence, but few of those interested in investing in the short sale fad truly seem to understand the latest definition of the process or understand that these transactions can take up to a year from offer to closing table. In this press release, the second of a four-part series, Mark Bradley, commercial and residential real estate investor, shares just a brief insight on the five-step process that must be considered for those wanting to dive for the short sale rather than buy bulk REO properties from an large inventory of bank owned real estate.
When the housing market exhibits record-breaking lows, property investors have the chance to capitalize with history-making fortunes through bank owed real estate. However, many investors have more often sought out the short sales and have been met with unexpected obstacles; with new red tape and new government intervention practices concerning short sales, the housing recession was felt on the receiving end as much as it was for the homeowner.
Bradley’s process of discovery of the short sale pain was described in his last press release. For investors wanting to know exactly what to expect with short sales, here are the five steps that must be achieved, and achieved in order, to get the elusive short sale.
Search out the type of short sale properties you want to invest in that are undergoing foreclosure or marketing that they are a short sale. This may require marketing tactics such as door-to-door visits, cold calling homeowners in distress, direct mail, pay per click ads, flyers, networking, and more. Learning to market takes time, money, and expertise. Picture Sherlock Holmes with his magnifying glass searching down the criminal. Sometimes searching out the best property is like finding a needle in a haystack; buyers must find the right person with the right property. This is the first step in investing in short sales and bank owned real estate. Everything else is secondary.
Homeowners must entrust their business to you and not a competitor. There are many property investors walking in your shoes, and your message must stand out above the noise, which is difficult. If the homeowner of the REO property doesn’t respond, you’ve got nothing. Fall short in this step, and like the first, it could easily mean no money in your checking account.
Homeowners must be comfortable working with you as their professional investor. The ball is in a homeowner’s court even if they may be experiencing financial pains. They must be committed to you and the process. One of 100 things could potentially go wrong: they may finally get a job, they may renegotiate their loan, a competing investor may be more appealing to them—nothing is guaranteed just with an initial agreement between you and the homeowner. Investors must learn how to find the right homeowner, The One, and steps to keep them committed through the process so investors don’t have to start over with Step 1.
The bank, lender, creditors, and other lien holders must be willing to work with you. Understand that the delicate process of short sale involves a team. Unfortunately, due to the economy, the banks and lenders are getting burned and facing major financial loss from foreclosed mortgages. Once you get the 2nd lien holders to settle, you and a property lawyer should make sure the ‘team’ is satisfied and the liens are recorded properly at the courthouse.
Bradley says, “Imagine putting in all this work just to have one pain in the rear creditor who wants a full payoff on their bad loan. So many deals get killed at this step. Much pain and no gain if you get knocked down on step 4.”
Congratulations if you are persistent and reach the final step. But you’re not out of the woods yet, because the distressed homeowners may be emotionally frozen and could be unpredictable. If the homeowner should file bankruptcy, six months to a year could be added to the foreclosure process, and they could always run away from the problem in financial panic. However, if you get through the final step, buyers must be prepared to overcome any roadblocks, obstacles, and pitfalls to approach financial gain.
In the third press release of the four-part press release series, Bradley describes the process of how he gave up the trouble of the short sale, and started his own multi-million dollar bulk REO real estate business. For more information, please visit the corporate website at http://www.ultimatebulkreo.com.
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On average 278,297 bank owned properties remain unsold with over 300,000 added to banks inventory of REO properties each month. Mark Bradley teaches investors how to take advantage of this huge back log of bank owned real estate.