WORKING WITH MOTIVATED SELLERS - Connected Investors
WORKING WITHMOTIVATED SELLERSWHAT YOU NEED TO KNOWTO NEGOTIATE A PURCHASEIN THIS MODULE, WE WALK YOU THROUGH: The Differences when Buying a Pre-foreclosure Property Working with Motivated sellers - Gathering the most importantinformation Scripts for Working with Motivated Sellers How to use the Seller Info Worksheet to get the details on the deal Sample Seller Info Worksheet to use in your businessINCLUDES Authorization to Release and Seller Information Worksheet 2018 CONNECTED INVESTORS
WHAT YOU NEED TOKNOW ABOUT BUYINGPRE-FORECLOSUREPROPERTIESIt’s not uncommon for people to misunderstand the differences betweena foreclosure and a pre-foreclosure property. But there are very bigdifferences - and knowing them can pave a path to profits when you’relooking for the best deals available in your market.In this module, we define the differences and walk you throughthe buying process: Why Foreclosure and Pre-Foreclosure Status MattersWhat is Foreclosed Property?What is a Pre-Foreclosure Property?The Upside and the DownsideHow to Buy Pre-Foreclosures 2018 CONNECTED INVESTORS
WHY THE FORECLOSURE (ANDPRE-FORECLOSURE) STATUS MATTERSWhen most people think foreclosure, they’re thinking of the bank-ownedREO (real estate owned) property listed by a real estate agent - andthey’re right.But all foreclosure properties go through a “pre-foreclosure” phase beforethey ever land on the MLS. Understanding the bigger picture of whathappens BEFORE the bank owns the property can help you identify goodinvestment properties and close better deals. And as an added bonus,you get to help a homeowner avoid losing their house to the bank.WHAT IS A PRE-FORECLOSUREPROPERTY?A pre-foreclosure is simply a property that has a mortgage that is indefault - meaning the owner hasn’t made any number of payments(usually three). The lender has begun the legal process to repossess theproperty. The pre-foreclosure is the period of time between the initial legalfiling of the notice of default (NOD) or lis pendens and the lender’s auctionsale of the property. Pre-foreclosures can be a valuable source of greatdeals on houses - but they require an entirely different buying process.WHAT IS FORECLOSED PROPERTY?The most commonly recognized foreclosure is the bank-owned REO.These are properties that lenders have foreclosed on and repossessed fornon-payment of the mortgage. First, the lender offers up the property ata “courthouse” auction. If it doesn’t sell at the legal courthouse auction, itthen becomes a bank-owned REO. At some point after taking possession,the lender offers the property for sale through any number of saleschannels including listing on the MLS, selling through third party auctionsand through asset managers. 2018 CONNECTED INVESTORS
2018 CONNECTED INVESTORS
The Pros and Cons of Buying Pre-ForeclosuresWe covered finding and connecting with pre-foreclosure sellers in theWorking with Sellers module. The next step is knowing how to actuallynavigate the purchase of a property that is in the pre-foreclosure stage.It an entirely different animal than you may be used to. Before you jumpinto pre-foreclosure purchasing, consider the both the upside andthe downside.THE UPSIDE In many areas, there isn’t a lot of competition. Most people think ofbuying foreclosures at auction or on the MLS. Pre-foreclosure getsthe jump on both. You can negotiate with the seller. Working directly with the sellergives you the opportunity to negotiate all sorts of things thatauctions and banks can’t and won’t. Think “subject-to” deals andother creative solutions. In most cases, you can inspect the property. If the owner has vacated,since you’re in contact with them - ask for access. Depending on the foreclosure timelines, you have time for thoroughdue diligence.THE DOWNSIDE Working directly with homeowners in distress can be a challenge.It requires knowledge and a willingness to work them through a problem. Pre-foreclosures are bad candidates to purchase through leaseoption. The owner has a history of non-payment. You don’t want toget into an lease option arrangement on a property that could beforeclosed on if the owner defaults again. It isn’t unheard of that an owner won’t leave the property after youclose the deal. Know your rights (and theirs). TIP: If the owner is dueequity, hold money in escrow with the closing attorney. When theowner vacates, release the funds. Cash is a big motivator. You’ll need contracts. When buying direct from the owner, it’s on youto take care of the legal stuff. You need a good closing attorney toget the deal closed. 2018 CONNECTED INVESTORS
HOW TO BUY PRE-FORECLOSURESThe bank does not own the property - the owner does.but a foreclosureprocedure is underway. Finding pre-foreclosures typically involvesresearching at the local courthouse and contacting the owner directlyto purchase the property. However, PinPoint Profits puts that (and otherimportant information) at your fingertips.Since you work directly with the owner to purchase the property, youwill do some of the leg work most often done by a real estate agent. Youdo not need a license and you do not need a real estate agent. You doneed to understand the steps to buying a pre-foreclosure and you needto engage the services of a closing attorney or title office.The Two Types of Foreclosure Processes: Judicial vs Non JudicialStates use different foreclosure processes and procedures. Be sure toidentify which applies to your state so you are able to navigate thebuying process.NON-JUDICIAL States do not require that the lender file a formallawsuit. But the process does go through the local county’s governmentsystem - sometimes called “Special Proceedings.” In non-judicial states,the homeowner is served a “Notice of Default” which begins the lender’sprocess of foreclosing.JUDICIAL states require that the lender file a formal lawsuit against theborrower. The home owner is served a Lis Pendens to begin the process.Foreclosures in judicial states are a more lengthy process - and can givehome owners more opportunity to cure the default by bringing theirloan current or selling the property.Both non-judicial and judicial foreclosure proceedings are handled byarea attorneys on behalf of the lender. When negotiating the purchaseof a pre-foreclosure property, you will need to communicate withboth the lender and the representing attorney (sometimes called the“foreclosure trustee”). 2018 CONNECTED INVESTORS
THE THREE STAGES OF CLOSINGA PRE-FORECLOSURE PURCHASEVERIFYDuring your analysis of the deal and due diligence, you shouldhave discovered the mortgage balance, the foreclosure proceedingdeadlines as well as market values for the property. You need toverify that the information is correct. In some jurisdictions, theinformation is available online. In other areas, you can visit thelocal courthouse to verify. It is also possible (and best) to get theinformation from the lender or the foreclosure trustee/attorney whoworks on behalf of the lender.CONTACT THE LENDER & FORECLOSURE ATTORNEYNeither the lender or the attorney will communicate with youwithout the owner’s permission. You will need to execute a simple“Authorization to Release Information” with the owner (sample atthe end of this section). Contact the lender and the attorney toget instructions on submitting the authorization - and be sure toget contact information of the person or department you shouldspeak with once the authorization is in place. Once you are able tocommunicate with them on the owner’s behalf, you need to get thefollowing information: Debt. How much is owed? How much to bring the loan current? Dates. What is scheduled? Hearings? Sale dates? Other?This information is critical and can indicate two major things:1. Is there the potential for a purchase based on the debt owed?2. Is there enough time to close the deal? 2018 CONNECTED INVESTORS
CONTRACT AND CLOSEOnce it’s determined that a purchase is possible, you will need toengage the services of a closing agent - either a closing attorney or titleoffice. You will need to provide the executed contract and informationon the foreclosure proceedings - especially the upcoming dates and thecontact information of the foreclosure attorney.If you are new to executing contracts, it’s recommended that youconsult with your closing attorney prior to signing on the dotted linewith the seller. 2018 CONNECTED INVESTORS
Authorization to Release InformationLoan number:Home Owner Name(s):Lender:I/We hereby authorize you to release to [INSERT YOUR NAME] andrepresentatives all information requested for the purpose of a loantransfer/negotiation, short sale and/or sales agreement. You may reproducethis document to acquire reference from more than one source.Thank You.Homeowner Name (print)SignatureSoc. Sec. #(last four)DateHomeowner Name (print)SignatureSoc. Sec. #(last four)Date[Consider adding a header or footer with your contact information including yourname/business name, mailing address, email and phone number] 2018 CONNECTED INVESTORS
ONE ON ONE WITHSELLERS - USING THESELLER WORKSHEET TOGET THE INFO YOU NEEDIn the section on Phone Scripts, we showed you how to make a goodintroduction, discover more about the seller, and qualify your prospectfor further follow-up.Now it’s time to continue the conversation.with the goal of getting allthe information you need to analyze the deal - and ultimately negotiatethe purchase of the property.When talking to sellers, it’s easy to get off track and forget to get themost important information you need to qualify and fully analyzethe deal.In this module, we’ve provided a sample Seller Information Worksheetand identified the key info you need to get when talking to sellers.IN THIS MODULE, YOU’LL LEARN: How to Fine Tune Your One-on-One Interactions What Info You Need to Vet the DealYou can customize the form we’ve included here to use in your businessand use it with every contact you have with potential sellers. 2018 CONNECTED INVESTORS
ONE ON ONE WITH SELLERSWhen you begin to work directly with motivated sellers, it’s bestto fine tune your communications to their situation. Motivatedsellers are typically financially motivated - and being able to tapinto that motivation and provide a viable solution can net incredibleopportunities. And the bonus.you get to help someone rid themselvesof a problem property (that becomes an investment opportunity foryou!). It’s a win-win.TALKING TO OWNERS OFVACANT PROPERTIES VS.PRE-FORECLOSURE SITUATIONSFirst, let’s take a look at the different situations faced by owners:OWNERS OF VACANT PROPERTIESOwners of vacant properties are feeling the pain with every mortgagepayment, insurance premium, and tax bill. Plus, vacant homes are atrisk for vandalism, vagrancy and dilapidation. To top it all off, manyinsurance companies cancel policies because of the additional risksvacant homes pose.All of this creates urgency for the owner of a vacant home. If theproperty has been a rental, the owner could be suffering from burnoutof both time and money. If the owner is an absentee (meaning theylive in a different town than the property’s locale), the hassles of longdistance ownership could be the tipping point.If the property is an estate - expect some extra leg work and handholding. The key to the success of buying estate properties isdiscovering how many and who the heirs are. You want to carefully 2018 CONNECTED INVESTORS
consider properties with multiple heirs.navigating the needs of multiplesellers can be a minefield.OWNERS IN PRE-FORECLOSUREAs painful as it can be to own a vacant house, you’ll find that mostowners of homes in pre-foreclosure can be even more motivated to sell.When the bank is on course to repossess the home, the owner is verylikely to be on a short and more urgent timeline to find solutions.The pressure is on for the pre-foreclosure owner - the process torepossess is marching forward and the owner may feel a sense of failure,anger, or even a sense of helplessness. Some owners may be ready tomove on; others may have tried every avenue to save their property.Gaining some understanding of the owner’s position can help youwork through their concerns with the sale of the property and get thepurchase over the finish line.PINPOINTTIPWe recommend you check outthe Phone Scripts and BuyingPre-foreclosure sections. They’llgive you even more insight intotalking with and negotiating withthe owners of vacant andpre-foreclosure homes. 2018 CONNECTED INVESTORS
OPENING THE DOOR TO THE “SELLYOUR HOUSE” CONVERSATIONWhen you’re talking to the owners of distressed properties - whether it’sthe condition of the property or the finances, it’s important to rememberthat most people don’t understand the process of selling their housewithout a Realtor . It’s up to you to walk them through what to expect.WORKING WITH THE SELLERFrom initial contact to getting the property closed, the seller is relyingon you to do what you say and see the transaction through to the end.BUILDING TRUST WITHTHE SELLER IS CRITICAL.You’ve got to remember, the seller is seeking an alternative solution.They chose not to rely on a real estate agent for any number of reasons.Your initial conversations should work to build trust with the seller.Listen carefully to determine the seller’s needs and lay out a series ofnext steps.“Thank you for contacting me. Yes, I buy houses and I also work withbusiness associates who are looking for specific types of homes forrentals and renovation projects. Tell me about your house and whyyou’d like to sell it. Once I know more, I can do a little homework tosee how I can help (solve your problem). Then, I’d like to visit theproperty with your permission. After that, if it looks like something myassociates or I can work with, I’ll present you with an offer. But the firstthing we need to do is talk about what you need help with.” 2018 CONNECTED INVESTORS
BE CLEAR ABOUT WHATYOU CAN AND CAN’T DOIt never pays to lead a seller to believe that you can pay more thanrealistic or that you can close on unrealistic timelines - especially whenan owner is facing foreclosure. You may be their last hope. Once you’veassessed their situation, it’s time to do your homework and determinethe potential of the deal. Take in their information - what do they need,what is their timeline, what problem are they trying to solve? Use thatinformation to set a foundation for moving forward.“You say the house across the street sold for 100,000? I will certainlytake that into consideration, but I wouldn’t want to promise that I canpay that. Every home is different - and I’d like learn more about yours,that way I can give you a fair offer. I’d like to see it as soon as possible.Are you up against any deadlines? When would be a good time? WhileI’m there, I’ll also check out the other homes in the area. This way I canget all the information I need to see how we can work together and getthis taken care of.”EDUCATE THE SELLERHelp them understand the process. Like every house, every seller isdifferent. Some won’t care about how you’ll buy the house - they justwant it to close so they can collect a check. Other sellers will wantevery detail. As you begin working with the seller, pay attention to theirmindset. If they want details, give them details; if they don’t, don’t. 2018 CONNECTED INVESTORS
“So you’d like to understand exactly how this works? It’s pretty simple.I buy houses “as-is” and make the selling process very easy for you.First, I’ll visit the property and then I’ll do a market analysis based onthe location and condition of the home. After that if everything looksworkable, I can present you with an offer. Once you accept the offer, I’llneed access to the home for further inspection by either myself or mybusiness associates. We map out a plan for repairs and from there, wecan finalize the date to go to closing through a local closing attorneyor title office. If everything goes as planned, most closings can happenwithin 30 days - and sometimes even less. But every house is different,so it could take more time or it could take less. Once we get started, I’llknow more.”SAY WHAT YOU’LL DO ANDDO WHAT YOU SAYThis further establishes trust and goes a long way toward gettingthe deal to closing. If you say you’ll call back, do so. If you have anappointment to see the home, get there early.“Thank you for calling me about your house. I appreciate theopportunity to work with you to (solve the problem). I’ve had a chanceto do a little market research and told you I would call you back.I’m interested in talking with you more and would like to see the housetoday. What time would work for you? I can be there in an hour orwhatever time will work best for you.” 2018 CONNECTED INVESTORS
FOLLOW UP AFTER SHOWINGObviously, this is critical if you would like to pursue the purchase. Butit is just as important if you find the house doesn’t fit your criteria. Notonly is it the right thing to do, it further establishes your integrity andcan lead to referrals.“Thanks for letting me take a look around. I told you I would get backto you right away. After taking a look around, I don’t see anything thatwould prevent me from presenting you with an offer. In fact I have onedrawn up already and would like to sit down with you to go over it.Once we have an agreement, I’ll get started with further inspections sowe can work toward closing which shouldn’t take more than (X) days.”It’s up to you as the knowledgeable professional to guide the sellerthrough the process of selling their home in a non-traditional way.Taking the time and effort to build a good working relationship with theseller will pay off. Even if you don’t get the deal closed with the initialcontact, the seller will remember you as someone who is helpful, easyto work with and a problem solver. Establish that kind of rapport and it’slikely they’ll call you back. 2018 CONNECTED INVESTORS
GETTING THE INFO YOU NEEDTO DETERMINE THE DEALRegardless of a property owner’s motivation to sell, there’s critical infoyou will need. Using the Seller Info Worksheet, you can gather the keyinfo you need to determine the property’s value, equity and the seller’ssituation. While you don’t want to robotically quiz them, you do wantto try to get as much information as you can. And once you have it, itneeds to be verified!Whether working with vacant or pre-foreclosure owners, you need togather this basic information either in your initial conversation or infollow up contacts and/or property visits.GET PROPERTY INFO ON THE STAKEHOLDERSFind out who is on the deed, the best point of contact and the easiestway to connect. If the property is part of an estate, ask about heirs andtheir role in the settlement of the estate property.“I’m happy to talk to you about possibly purchasing the house.Are you the owner? Who else is on the deed?”“So this is an estate home? I’m sorry for your loss but am happy to talkwith you about your options. Are you the executor of the estate? Arethere other heirs we will need to include in future discussions? (Multipleheirs can complicate negotiations and closings. Before committing,be sure that all heirs can be reached.)“What is the best way to reach you in the future?” 2018 CONNECTED INVESTORS
GET PROPERTY INFOYour conversation with a seller should be fluid and conversational. Inthe process, you want to get good property information including theproperty characteristics and condition. It’s very useful to ask about bigticket home repairs like roof, heating and air systems, and windows. Asyou are talking with the seller, review the Seller Info Sheet to make sureyou get the details.“Where is the home located? Yes, I know that area. Is your propertya 3 bedroom, 2 bath?“What improvements have been completed lately?”“What repairs would you say the property needs? How are the roof,air conditioning and windows?”ASK ABOUT THE MORTGAGE“Is there a mor
NON-JUDICIAL States do not require that the lender file a formal lawsuit. But the process does go through the local county’s government system - sometimes called “Special Proceedings.” In non-judicial states, the homeowner is served a “Notice of Default” which begins the lender’s process of foreclosing.
Drilling-down even further: Competitive Landscape Top 10 Sellers-Children's 24.84% 40.28% Top 10 Sellers-All Roller Skates 22.24% 29.83% Top 10 Sellers-Women's 13.52% 20.73% Top 10 Sellers-Men's 38.14% 42.34% Percentage of Total Category Revenue Percentage of Total Roller Skates Listings Data on the top ten sellers in each category based .
Sales Tax 101 for Magento Sellers As an online seller, you want to understand every nuance of your business. Some aspects – like sales tax – can get overwhelming quickly. If you fall into this camp, then this quick guide is for you. The goal is to explain the basics of sales tax for new eCommerce sellers (or seasoned eCommerce sellers who
Competitive Market Assumptions 1. Fragmented market:many buyers and sellers Ø Implies buyers and sellers are price takers 2. Undifferentiated Products:consumers perceive the product to be identical so don’t care who they buy it from 3. Perfect Information about price:consumers know the price of all sellers 4. Equal Access to Resources .
age, dealerships (buyers) have a similar degree of bargaining power as sellers. For manufacturer sellers, or sales with substantial buyer competition, sellers’ bargaining power is much higher. Keywords: Bargaining power, auto industry, incomplete information, vertical relationships, Revelation PrincipleFile Size: 1MBPage Count: 63
the best practices are and how to setup your . CONTENT 1. Introduction to Shopee International Platform (SIP) 2. Shopee International Platform Capabilities 3. Benefits for SIP Sellers 4. Best Practices of SIP Sellers 5. FAQs . sellers will need to use either integrated Poslaju/ J&T Express/ DHL eCommerce and fulfill the shipment as usual.
ABSTRACT Title: Trust Building for Online Private Sellers: Case of Taobao in China Level: Thesis for Master Degree in Business Administration Author: Miaowen Xu and Xinlei Guo Supervisor: Maria Fregidou-Malama Date: 2016-02-19 Aim: The aim of our study is to analyze elements of online trust building process from sellers' standpoint based on case study of Chinese website: Taobao.
For Texans who sold their homes, the most popular reason for putting a home on the market was to move closer to friends or family, followed by job relocations and a desire for a larger home. Sellers spent a median of nine years in their homes. The median sales price was 70,000 more than what sellers paid for their homes, and the
Real Estate is no different. Of course, the message and service need to be good. That said, the message and service are the easy part. Having the right targets, that is the game . At Find Motivated Sellers Now, we mine, aggregate, track, and analyze single family transactions weekly in almost every city, state, and county across the county.
