Buying foreclosures can be extremely profitable for real estate investors. However, most of these homeowners are mortgaged to the hilt. They have no equity, and big loan payments. In fact, many actually owe more than the property is worth!
Most investors will walk away from these deals because they see no obvious profit. However, you can “create” your own equity by negotiating a “Short Sale” with the bank or lender.
Why Short Sales Don’t Work
However, even experienced investors fail to create successful short sales, because they do not know the most important secret of all when doing short sales. Without this secret, an investor with the greatest negotiating skill will fail. Without this secret an investor armed will all the right paperwork with fail. And without this secret, even an investor with an air-tight case of low value including repair estimates, etc. will fail.
It’s not that negotiating, paperwork, and a convincing case are not important. It’s just that you’ve overlooked, the most important element that lenders use to determine what they will take for a property in default. It is therefore
The Ultimate Short Sale Secret
Ok, I won’t keep you in suspense. Here’s the secret: In order to get big discounts from a lender on a property facing foreclosure, you must control the Broker’s Price Opinion. (BPO).
What is a BPO? In short, it is a value appraisal. When a short sale package is submitted to the bank, they send out a real estate agent or Broker to the property to judge its value.
The broker or agent handling the BPO is working with the bank. Their job is to simply visit the property and give their opinion on its value “as is”.
And here’s the key: it’s a broker’s price OPINION! And since opinions are subject, you have the ability to Influence that opinion. Learn how to do that and you can create $10,000’s in your bank account with little effort.
Step 1: Do Your Own Research
Before you’re ready to influence the BPO, you’ll have to start out with doing your own research and preparing your short sale package effectively. What should you include?
By this time, you should have already done a walk-through of the property. If you have not done so already, inspect the property (preferably with a home inspector or real estate broker of your own) and gather the following:
Tags: buy foreclosure, how to real estate invest, real estate calculate, real estate seminar, short sale, zick