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It's Not French; You Ought To Know What It Means! This is Real Estate 2009, Baby, Survival of The Fittest!

Throw away all the old rules; this is no longer "order writing", but it's not sales either. This is Real Estate 2009, Survival of The Fittest...

How do you stay in the game and profit? EDUCATION!

I'm going to throw some terms your way. If you are not sure what they mean, hurry up and learn! If you haven't implemented them lately, what are you waiting for?

Owner financing: The current tight money situation has put this one back on the menu. If you have listings just lingering on the market with no takers and your sellers own those properties outright, you get an F minus for failing to suggest making "owner financing"available to potential buyers when you took the listing. If you don't know what your seller owes on the property, you get an F minus-minus (is there such a thing? I guess it's no worse than an F minus!)

Net sheet: Don't take a listing without it!

Land Sale Contract/Contract of Sale: If you don't know what this is, or what the difference is between this, owner financing and a lease to own, go back for remedial education. These could save your 2009!

Seller carrying a second. Hey, wasn't it 1984 when we last saw this one?

Assigning contracts. Although many standard contracts have clauses precluding this, there are still ways to assign contracts. That can come in handy when you've worked hard to get a difficult deal through after negotiating a fantastic price, only to lose it because the current buyer can't or won't perform.

Back up offers. I do them regularly. If you have a hot listing (like an REO), why not take back up offers?

Lease to own/Lease with an Option to buy: You need to get good at these. Figure out 10 advantages to the owner and 10 to the Buyer. Clue: they are there!

You can rent a property AND make it available for sale. How? That's another blog I'll write soon.

Short Sales, Foreclosures and REO's? Now, THAT's the other half of our practice... deserving its own post...

If I ask you the statistics for your market what will you tell me? If you don't know your figures, how are you going to advise your clients?

Every link in this post will take you to a different blog further explaining that particular item. As I post other educational blogs pertinent here, I will add new links to those.

Education will earn you the wings to fly high in this, or any other market... Please share your tips with the rest of us!

Mirela Monte, Your Myrtle Beach Real Estate Connection Join The Optimist Group!

Posted by Myrtle Beach Real Estate by Mirela Monte on 12/03/2008 12:02 AM

Comments (23)

Real Estate in the ActiveRain Channel

this is real estate 2009, baby, survival of the fittest, short sales, reos, foreclosures, market statistics, lease to own, back up offer

Originally posted at: Myrtle Beach Real Estate by Mirela : It's Not French; You Ought To Know What It Means! This is Real Estate 2009, Baby, Survival of The Fittest!

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23 Comments on It's Not French; You Ought To Know What It Means! This is Real Estate 2009, Baby, Survival of The Fittest!

DEC

2008

It is surprising how many agents don't know many of these. Within the past few days I've had to explain some of these to several agents. When I suggest one of these in order to make the deal work, they scratch their heads.

You are at point A. Your commission is at point Z. If you don't know your ABC'S, you'll never make it to the Z!

It's late and I'm tired. If you learn all the tools, you will secure your job for the rest of your life. This market presents such unique and amazing opportunities for those who don't mind learning. I have been at this for twenty years, yet I've never seen such extraordinary opportunities as I see now. Get good at all of these and you will never have to worry about making a living again, I promise you! This market is your once in a lifetime opportunity to make it BIG! Enlist the forces of these currents to sail to your destination!

Here is another interesting link I came across while putting this together. I was looking up lot subordination, which I took out of the post until I check with my attorney in the morning. Here is the link:

http://www.legalwiz.com/subordination-of-collateral

Thanks for the tips. As usual, your post is full of great wisdom and solid advice. Can't wait to read your other posts.

In times like this we need to be more creative and better learned than ever before. Thanks for the education and help!

Good tips, your post is hitting the nail on the head, we must be familiar with all of those terms.

We do need some creativity to make deals work in this market. The information is out there if we need to use it! Thanks for sharing the links...

As always great info -- Yes -- this market is SURVIVAL of the fittest -- JE

I agree with most of your blog, but financing is NOT that tight!!! There is a lot of money to lend still, you just need a job, "ok" credit, and a small down payment. There are still a few Stated income loans available, with a good down payment and excellent credit.

The issue is more in the Jumbo Market. You need a bigger down payment once you get over $417,000 (10% typically). This may change with the new limits that go into effect January 1.

Seller financing is definitely something that May work. and Seller seconds too, (provided that they are NOT silent seconds, people go to jail for that sort of thing these days) and you have to be sure the second fits the guidelines of the first. Many first mortgage guidelines allow for CLTV's and Second mortgages. But the Second mortgages are just NOT available now since the second lien holder gets NOTHING in a foreclosure or short sale

Net sheets: ABSOLUTELY!!! Crazy to even discuss a listing with out it!!!!

Seller financing for Land is almost a necessity. Land loans are hard to find unless they are in conjunction with a construction loan.

And Education: That is such a MUST HAVE in ANY market. This is our Career... if we want to do well and survive we have to stay up to date!

I wrote this yesterday as a result of my conversation with an agent friend of mine who is losing his home. He didn't know the difference between owner financing and a lease to own. He had never heard of a land sale agreement. It frustrated me because I hate watching him lose his home. I explained it all to him at length and I'm hoping that I have made a small dent in his dearth of knowledge and that he'll be able to somehow make some money with that education and be able to keep his home.

Two agents in this area have just lost their homes at this latest Horry County Foreclosure Sale. I am so sad about that! I want to impart my knowledge to every agent and help them come out of this downturn even better than before. To that end, I will continue to post educational blogs and deal with various scenarios that are unique opportunities to improve our practice in this tenuous market. I encourage the veterans of Real Estate to share whatever valuable tools they have found with the rest of us. Now, more than ever, we need this educational network!

Robert: your contribution is a gold mine! Thank you so very much!

This is exactly the kind of exchange I was hoping for when I wrote this!

I am hoping to garner more of this type of comment.

Robert, you are golden! Thank you very much!

You are welcome Mirela! Glad to toss my two cents in! (you know I always will!)

Robert: Your two cents is more like $100!!!

Robert: BTW: Your comment was #13. Isn't there some AR rule on that? Something about coffee at Starbucks? Oh, no, that's on comment nr. 100...

Mirela,

Glad to see someone else is out there doing more then surviving. I looked yesterday at my stats and I am right now busier then I have been all year!!! Go figure, I started shifting my business the first quarter and the pipeline is flowing now.

Larry, where there's a will, there's a way... Good job!

How many of these tools do you employ?

This is so true. We have seen these markets before and heaven knows, we will see them again. You just have to shift your thinking to become more in tune with today's economy. There are good buyers out there, as well as, good listings. You just need to get out and get going! Helping eachother is the best, thanks!

It's a Good Life!

Fran

DEC

2008

Fran: Yes, it is a Good Life! Thank you! Great comment!

Excellent Post! Thanks for all the good information. I do remember the good old days of creative financing - I worked for a Title Company then - and we were very busy!!

Education is a must. Anyone who wants to continue in this profession must continue their education or else they are left in the dust. Would you go to a doctor who has not upgraded in 20 years? Probably not.

The only thing I am going to comment on is the SCARY state of the house in that photo!

Lisa: I thought it quite appropriate: it denotes only too well the state of our current market conditions...

Sandra: Great analogy! Thank you!

Mary: You are most welcome! Creative financing is back in ... So is creative everything else that has to do with Real Estate...

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