The top 4 mistakes real estate agents make when entering the short sale market


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The top 4 mistakes real estate agents make when entering the short sale market

  1. 1. The Top 4 Mistakes Real Estate Agents Make When Entering The Short Sale Market
  2. 2. Copyright Notice All right reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical. Any unauthorized use, sharing, reproduction, or distribution is strictly prohibited. Legal Notice While attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions, or contradictory information contained in this document. This document is not intended as legal, investment, or accounting advice. The purchaser or reader of this document assumes all responsibility for the use of these materials and information. 2
  3. 3. Contents 4 Introduction: Learning from David Letterman 5 Mistake 1 : Not Realizing How Big the Opportunity Is 7 Mistake 2: Thinking It's Easier to Negotiate the Deal Themselves 8 Mistake 3: A Lack of Legal Experience Dealing with Things Like Deficiency Judgments 9 Mistake 4: Negotiating Too Low – and Losing Out on Valuable Commission Dollars 10 Conclusion: Black Gold 3
  4. 4. Introduction: Learning From David Letterman Comedian and television celebrity David Letterman made Top 10 lists famous, funny, and a great way to get his point across to an audience. Sometimes he was making a political point and sometimes he was simply making fun of someone or saying something true about life. His approach is priceless and so we just had to steal his idea. Our list is not a Top 10 list. – it's only a Top 4 list. But I hope it has the same effect as something Letterman would use. The lessons contained in this report are directed at a specific audience. If you are a real estate agent, then YOU are our audience and you're going to want to follow along. We know that you are a real estate guru. You know the real astate business and how to make money. We're not here to tell you otherwise. But our team knows short sales, and we want to pass on to you the lessons we've learned the hard way. These four lessons will not benefit you if you do not take them seriously, learn them, and apply them to your work. Avoiding these four mistakes will save you time and money, leaving you with more of both to do what you love to do. ◊◊◊ 4
  5. 5. Mistake number 1: Not Realizing How Big the Opportunity Is Missing out on an opportunity is deadly. It won't kill you, but it will kill your pocketbook. It will destroy your earning potential. Nobody wants something like that to happen – just the opposite. People want to make money. They want to earn more. But how? It begins with making the most of opportunities that come your way and recognizing how big each opportunity is. There is a difference. It's importance to not only make the most of every oppotunity but also recognize the potential within an opportunity. So how does this relate to short sales? There are two things everyone knows. (At least, they should know.) You never leave money on the table, and you never make excuses for missing out on oppotunities. Allowing those short sale listings to simply sit on your desk at work collecting dust IS leaving money on the table. Stop that right now! Pick up the listing of short sales and blow off the dust. Do something with them rather than doing nothing. Look at them as great opportunities and not as a waste of time with little to no return. Short sales are big opportunities. They do not have to be a waste of time. They can be a good use of time with a nice financial return. Taking no action with your list of short sales equals leaving money on the table. Taking action with your list of short sales equals putting cash in your pocket. Missing out on opportunities doesn't just relate to short sales. People miss out on life-changing opportunities every day. Here's a case study: You've been job hunting and you're faced with two choices. One is a job that you're familiar with, that's comfortable, that you can do okay at and make some money. The other job is unfamiliar territory, an uncomfortable situation, that you could do okay at but could also fail miserably at, and has the potential to make you a lot more money – but not until you succeed. Which job do you choose? 5
  6. 6. Most people would choose the familiar, comfortable, safe job that is profitable now. And there is nothing wrong with that decision. But not choosing job number two is a missed opportunity to do something new and different and challenging with the potential to unlock wealth and success later on. People choose job one because they are afraid to fail. They make all sorts of excuses why they shouldn't take the job. Choosing job two is risky and could lead to personal failure. So what if you fail? At least you'll know you tried. There are a lot of job number ones. You can always go out and find one of those. Choose job number two. Missing out on an opportunity a short sale can provide you is similar to our case study. Stop making excuses why you shouldn't touch a short sale. Stop choosing those familiar, comfortable, and safe sales and choose short sales. The time for action is now. When a short sale presents itself, grab it with both hands and don't let go until you squeeze as much cash out of it as possible. If you don't know how to squeeze gobs of cash out of short sales or even where to begin, then continue reading the rest of the report. You'll discover more as you read on. 6
  7. 7. Mistake number 2: Thinking It's Easier to Negotiate the Deal Themselves My friend is a pilot for a large commercial airline. He loves to fly and travels all over, stopping in cities across the world. (Occasionally I envy him.) Recently we discussed the role and importance of a co-pilot. A trained co-pilot is important even with the advanced aircraft technology of today. My friend told me how a co-pilot is not in command but is there to relieve or assist the pilot in flying the plane. The co-pilot can step in if something should happen. They help safely negotiate the takeoff, in flight turbulence, and landing of the plane. Pilots and co- pilots are negotiators. Negotiating short sales is no different. Negotiators need a co-pilot to relieve and assist in the negotiating process. A good negotiator knows when and how to use information to close the deal. He/she also knows the bottom line and when to walk away. Negotiation requires a lot of intentionality, planning and maneuvering through turbulent conversations. It's good to have a partner alongside you to help negotiate your list of short sale deals. Find a good co-pilot to assist and relieve you. Do not fly alone! You never know what could happen, so it's important to have someone along for the flight to back you up. Take someone along with you that knows when to say yes to a deal and when to say no. 7
  8. 8. Mistake number 3: A Lack of Legal Experience Dealing with Things Like Deficiency Judgments Some things in life are better left to professionals. This is especially true when it comes to knowing and interpreting the law. Have you ever tried to read a will, or lease agreement, or any type of legal document? Talk about boring! I sometimes wonder if atterneys and judges write laws in such a way as to intentionally bore peope into signing. It's like they've discovered a way to hypnotize you with legal jargon, or something I like to call legal quicksand. Do not get stuck in legal quicksand. If you don't know the legalities attached to short sales, then don't try to navigate short sales on your own. You have three options. You could: 1. Go Han Solo and attempt to close short sale deals alone. 2. Employ a bright attorney who knows your local laws. 3. Surround yourself with a team of short sale experts. You choose. It's your choice. You can decide to have a qualified, talented attorney helping you. Or you can connect with a team of short sale professionals who know what they're doing. Surrounding yourself with people who are smarter than you is not a sign of weakness. It's the sign of a great leader. Great leaders surround themselves with people smarter than they are because it raises their level of leadership. This is not my idea. John Maxwell teaches it at his seminers and in his books. If you surround yourself with people who are dumber than you are, your success will only reach as high as your own intelligence. If you surround yourself with people who are smarter than you are, your success will rise to a whole new level. It will rise to their level. So find a bright attorney or a smart, professional team of people who know short sales. Whichever you choose, it's important that you be extremely careful and do your homework so that you're not caught in a financial and legal mess. Deficiency judgments are a prime example. States differ on deficiency judgments, so you HAVE to know your local laws to make these rulings work to your financial advantage. Find help. That's our best advice. Partner with a team of professionals who really know what they're doing. There are people out there who know this stuff. You may just have to use the power of Google to find them. Or you can contact us. We're here to help you. 8
  9. 9. Mistake Number 4: Negotiating Too Low and Losing Out on Valuable Commission Dollars This mistake is tied directly to Mistake number 2. You need to find someone to help you negotiate. There are a lot of real estate agents who lose out on commission dollars because they enter a negotiation with low expectations. Most agents misunderstand the value of a piece of property in foreclosure. Nobody likes to lose money. Someone who is familiar with short sales is familiar with a home's value. They also have greater experience in pulling as much cash as possible out of the sale. Find that someone. Do not be left alone trying to pull cash out of short sales when you have no experience evaluating them. 9
  10. 10. Conclusion: Black Gold Please take these four tips to heart. Learn from others' mistakes. These four mistakes are more than just a list of simple, common sense advice on short sales. Avoiding them by handling short sales with a bit of wisdom and intentionality can have a huge impact on your bank account. Short sales, handled correctly, can be like drilling for oil. You have to dig and drill in different plots of earth until you hit a pocket of oil. Keep drilling away at short sales while avoiding these mistakes and you'll strike it rich. Eventually you'll hit a patch of black gold. And when you do, people will be watching you with envy, wondering how you did it. Then you can be the one to share with them the Top 4 Mistakes Real Estate Agents Make When Entering the Short Sales Market. Best Regards, MLS Direct Network of Central Florida 10