About Short Sales

Buy Notes - Who is Your Borrower?

I just got off the phone with the Sr. Vice President of a California bank in charge of note sales, and a note broker friend of mine who set up the call.

The bank had 3 defaulted mortgages which were commercial loans based in the Los Angeles area.

How to Buy Notes…communicate with your borrower

Hear me out…

So the SVP told me that one of the loans has a foreclosure sale scheduled 2 weeks from now.

The bank had not been in contact with the builder/developer (borrower).

I asked her if she was concerned about the loans or not, and if she was worried about whether she would have any problems taking over the properties through the foreclosure.

She told me she wasnt concerned because the property values would allow them to pay off their loan.

Buy Notes - My Concerns

The most important thing that I have learned is that building the relationship with your borrower is key. This is probably one of the most important concepts in the note buying business. Manage your relationships.

By not working with your borrower, you can really mess up your chances of getting out of your note deals.

This is why…

For all loans, there are 5 Note Buying Exit Strategies:

foreclosure, refinance, short sale or deed-in-lieu, note sale, and reperformance.

Out of these options, the only 2 that will succeed with no borrower contact are foreclosure and note sale.

In this example, the bank has chosen foreclosure as the exit. But the time it could take to recover the property can easily be postponed, if the borrowers file for bankruptcy. This is one of the risks associatied with foreclosures.

My Advice on Buying Notes

Buying notes can bring you high returns without have to foreclose or to sell the note to someone else.

So if you lose contact with your borrower, you are essentially killing about 60% of your note buying exits. (3 of the 5)

Would a professional golfer get onto a course with only 5 of 12 clubs?

Wouldn’t that limit their game?

Probably.

It sure would be entertaining watching him hit a putt with a 9-iron.

I know it can be painful, but working with your borrower is essential in the note buying business.

This is the same advice that I shared with the LA bank today.

I will be tracking her non performing notes so see if any of them end up in bankruptcy. Then we will know if she took my advice.

And if the notes do end up in BK, I am pretty sure that she will be regretting the fact that she lost communication with her borrowers.

People everywhere are talking about how great and easy it is to begin making money with real estate short sales; however is it really easy to begin profiting and making huge money with real estate short sales?

While people make money off the real estate market on a daily basis; it does not necessarily mean that you will. Have you been wondering can I survive as a real estate short sales investor?

On Hand Cash: You may be searching the internet for no money down techniques; however you should always have some cash on hand. Will you be able to make the payments if you have to hold onto the home longer than you anticipated; this is where so many new investors fail.

Regardless of all the hype that you see on television or anywhere else; the truth is that you should always have money for your projects.

Goals: What are your goals and why do you want to become involved with real estate short sales? The truth is that if you do not know what you would like to accomplish then it will be very difficult to find a great method that actually puts money in your pocket.

Hire A Team: It is important to have a team who knows what they are doing when it comes to real estate. You will never be able to do it all by yourself.

Invest In Education: If you really want to give the real estate investing path a go; then you have to take the time to invest in education. It will be money well spent and will help you become a success.

Visit our site below and get all the details to actually making money with real estate and do not forget to sign up for our FREE ecourse that will give you some great tips on investing.

A missing headline is a common real estate postcard marketing mistake. Many realtors feel that short messages don’t require headlines. But direct marketing experts will tell you that the value of a great headline is intensified in postcards.

You have to create stronger headlines for postcards because you have limited space to get your message across. Your headline should be direct to the point but at the same time, powerful enough to grab your customers? attention. That is the trick why some real estate investors acquire new customers on a daily basis.

The most surefire way of creating a strong headline is to follow the WIIFM ? What’s In It For Me principle. Remember, benefits first before features.

Take time and gather your thoughts. Create a list on your customers? benefits. How will he benefit from your service?

Write them all down. Mull over and reflect on all these benefits to get yourself inspired and ready to come up with your own striking headlines. Just write and don’t criticize or limit your ideas at this point. When you think you have enough, look back at your headlines and study them. Drop uninteresting headlines. With the remaining promising headlines, replace some words with active verbs or more vivid words.

You will also notice that some of your most promising headlines are related. Merge these headlines into one strong headline. You may still end up with a few distinct headlines. Test these different headlines if they can effectively meet the direct marketing standard: What’s in it for the customer? Remove the ones that may be creative but don’t pass this test.

Next, you can test market these different headlines to identify what will get the highest response. All of these steps may seem like a lot of work for just coming up with a few words. But in real estate direct marketing, effective headlines have been proven to remarkably increase customer response rate.

In addition, you can achieve more success in your real estate postcard marketing if you pay more attention to your customers, and learn what benefits are most valuable to them. These benefits have the strongest emotional connection to your prospective customers. And when these benefits are merged into a headline, you produce a highly potent means of persuasion.

It will take a lot of time and patience. Remember, Rome was not built in one day. You’ll have to do some trial and error at first but once you get the right ?formula? everything will flow smoothly after.

These benefits are the diamonds you use in crafting masterful headlines for your real estate postcard marketing campaign.