If you are at the step of negotiating with a lender, you have earned your first Short Sale client. Now, what steps are involved in earning your first Short Sale profit?
The number one rule to remember is that short sales are not only better for the buyer, but normally better for the lender as well.
For most banks, short sales are better financially than foreclosures.
If lenders can make more money off a short sale than a foreclosure, lenders will accept. As an investor, it is of utmost importance to make sure the client has filled out all needed paperwork, including the hardship letter. Double check the paperwork before it gets processed. As soon as the paperwork is completed, get it to a loss mitigator immediately.
Be persistent.
Follow through on the loan. Ask what is the update? Who owns the loan? The more persistent you are as an investor, the speedier the process. Normally if an investor fails to follow through, the case gets pushed to back of the desk and is often forgotten. Your persistency will pay off for you and your buyer.
Now that the paperwork is prepared and submitted, bargain the best price with the lender! As soon as the buyer and lender agree on a price, it is your job to start the tedious process of closing a deal.
Beside your offer, the lender will require additional documents. Different lenders require different documents but here are a number of common credentials included in the paperwork:
1. Recent mortgage statement or coupon
2. Two months bank statements
3. Two recent pay stubs
4. Borrower Financial Information
5. Homeowners Association Information
6. Hardship Letter
Once the price is finalized, it is your job to flip the house; turn a “upside down” property into a potential buyer’s dream. Buy, fix, and resell. It sounds easy, but this process can make or break a future sale. What exactly is flipping a house? This term merely means making over the property to meet the prospective needs of today’s buyers. This process does not need to be expensive, there are many tricks and trades of the business that can be economically friendly.
Simple things like curb appeal can add several hundred or thousand dollars to a price tag. That could be as easy as planting flowers and greenery, repainting the mailbox and porch, or updating outside light fixtures, windowpanes, and the front door. The interior of the house can be just as simple and easy on the pocket books. Trouble-free things such as adding fresh coat of paint to walls and trim, laying down new carpet or flooring, and de-cluttering can add monumental value to the price of the house.
Once the “make over” process is complete, it is now time to stage the house for potential buyers. The main objective in staging is letting your potential buyer imagine themselves in the property. Make it livable, family orientated, up-to date.
Focus on the main areas of the home: the living room, kitchen, and master bedroom. The first room a buyer sees when entering a home is the living room. The idea is to make the living room feel friendly and welcoming, at the same time as spacious. In today’s modern day kitchen, granite countertops and stainless steel appliances are a MUST, as well as, cabinet and counterpace.
Remember: de-clutter the kitchen!
This will automatically open up the kitchen and lets the buyer know that there is adequate space to cook. The ideal master bedroom for Jacksonville properties and surrounding areas are space and cleanliness. Portray the master bedroom as if a couple was living in it.
Common tricks like an open book or piece of jewelry on the nightstand lets the buyer know that this is not an empty house, but someone’s home. A house does not need to be the biggest or most updated to sell. Instead, good use of space, a high-quality cleaning, and simple touch ups will be the key to a successful, quick selling of a property.
You, the investor, have an enormous opportunity for success if you follow these essential steps. Organization and timeliness with paperwork will speed up the closing process, as well as, a quick, sufficient make-over of the property. We wish you monumental success in the start of your new Short Sale business!
Posts
No comments:
Post a Comment