Table of Contents
Downloadable Forms ix Acknowledgments xi
Introduction xiii
Chapter 1 Get Motivated, Set Goals, Get Started 1
A Short-Sale Case Study—with a $200,000 Profit 2
Getting Motivated 6
Setting Goals 7
Accomplishing Your Goals 9
This Is a Business, Not a Hobby 10
Dealing with Naysayers 10
Personal Appearance 12
Setting Up Your Office 13
Structuring Your Business 14
Ready to Do Business 16
Chapter 2 What Is a Short-Sale? An Executive Summary of How to Negotiate with the Bank and the Homeowner 19
Why Do I Need to Do a Short-Sale? 20
Why Do Banks Accept Short-Sales? 21
How Much Do You Offer the Bank? 23
Successful Short-Sales Start with the Homeowner 33
Financial Agreement with the Homeowners 33
How Much Should You Pay the Homeowner to Move? 35
Setting the Move-Out Date 36
Chapter 3 Expert Strategies for Finding Distressed Properties and Foreclosures 39
Buying Bank-Owned Properties for Pennies on the Dollar 39
Newspaper Ads 43
“I Buy Houses for Cash" Street Signs 44
Networking 44
Postcards 45
Magnetic Vehicle Signs 45
Bail Bondsmen 46
Pawnshops 46
More Deal-Finding Favorites 49
Chapter 4 How to Approach the Homeowners and Create a Win-Win Solution 51
Understanding Why Homeowners Want to Work with You 52
Building Courage to Knock on Doors 53
Friendly Negotiations with the Homeowners—What to Say and What You Need from Them 54
Establishing Rapport over the Phone 57
Knock on Doors Like a Pro 57
Helping Homeowners Understand Their Options 59
Deed in Lieu of Foreclosure 64
Chapter 13 Bankruptcy 65
Final Thoughts 65
Chapter 5 Preparing Your First Offer 69
Authorization to Release Information 75
Going to Contract 79
Hardship Letter 88
Pictures 98
Investor Cover Letter 99
Comps That Justify Your Offer 101
Net Sheet 105
Estimated List and Cost of Repairs 107
Chapter 6 How to Approach the Bank 113
How to Get the Bank Interested in Talking to You 114
What the Bank Wants from an Investor 114
How to Get Through to a Stonewalling Lender 115
Presenting Your Short-Sale Offer to the Bank 115
The Asset Manager’s Role 119
Working with the Portfolio Representative Directly 121
Getting Your Short-Sale Assigned to a Loss Mitigation Rep 121
Additional Information the Bank May Require 122
My Offer Is Submitted—Now What? 127
Chapter 7 Negotiating with a Second or Third Mortgage Holder 131
Your Conversation with the Second Lender 136
Variations on a Theme 139
Chapter 8 Key Elements of the Legal Process You Must Understand 145
Understanding Ownership versus Debt 146
Foreclosure Process 149
Types of Liens 152
Types of Mortgages and Loans 155
Chapter 9 When the Bank Says Yes 159
How Do I Buy More Time? 162
How Does the Homeowner Buy More Time? 163
Chapter 10 Three Profit-Making Exit Strategies: Wholesaling, Rehabbing, and Renting 169
The Wholesale Path 170
The Rehab Path 173
Selling the Home 180
The Rental Path 180
Chapter 11 Setting the Closing Date and Making Sure the Closing Goes Smoothly 183
A Successful Closing 185
What If My Homeowners Change Their Minds? 186
What If My Buyers Change Their Minds? 189
Closing with the Assignment of Contract 191
Double or Simultaneous Closings 196
Are Double Closings Illegal? 198
Chapter 12 First-Year Expectations 201
How You Can Become Rich without Going to College 204
What We Did to Get Here 205
What You Can Expect in Your First Year 207
Thinking Like a Millionaire 208
Index 209
