Which business model makes more sense to you?
Doing short sales as an Investor or as a Realtor?
As an investor, you might be looking for the home run deal that allows you to buy at 50-70% of the after-repair-value. Or you may flip it and risk that your tactic might be perceived as fraudulent...when it might not be. You probably will find that out of 50 short sale deals you're working, the lender may allow a deep enough discount on just 1 or 2 properties that makes it a good investment property for you to buy and/or profit from. On the 1 or 2 good deals, you may make 10-15k each.
OR
You simply reverse your hat and change your approach to representing the other 48 out of 50 homeowners as their Realtor who simply facilitates the transaction and earns a commission that both the bank is willing to pay and that ALL parties know about because it's disclosed on the HUD statement. Being really conservative, you make $5,000 per deal. Even if 75% of the 48 deals close, you just pocketed $180,000, less what your broker takes.
Which one are you?
The key to short sales is volume...and there is a lot of it our there! Too many agents are experiencing short sales on a transactional basis. When they only have one working, it's like having one child! You worry about everything that happens to it. For every 4 good short sales, there is 1 that is very challenging. If you have 10 deals going, 2 or 3 may be challenging. You won't be as concerned about the "roller coaster" ride with those 3 when you have 7 good ones in the pipeline.
Michael Spickes
America's Home Rescue
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