CDPE Certification

By
Real Estate Agent with Keller Williams Realty - DTC

Since I learned about the CDPE (Certified Distress Property Expert) certification here on ActiveRain, I just wanted to pass along that I completed the training class yesterday in Denver.

What an awesome class! You won't hear me saying that too often when it means that I have to be couped up in a classroom (and concentrating) for two days.

I'm not a newbie to Short Sales, but it was scary to discover home much I didn't know. I feel that I am even better equiped now to support the families I work with in completing a short sale and allow them to move on with their lives.

The instructor for the Denver class was Vanessa Liddell. She did a spectacular job in presenting, explaining, and making sure we understood the material. We had some very interesting discussions that also added to the class material from an anecdotal perspective.

If you've decided that you want to take on the brain-damage and do short sales, I would highly recommend this class.

Comments (11)

Corey Chase
Silvercreek Realty Group - Meridian, ID

Good input thanks Mike

Feb 13, 2010 05:46 AM
Wendy Rich-Soto, Realtor/Broker Associate
Keller Williams Realty, South Bay - San Pedro, CA
Getting you to your next with a zero failure rate!

I have a friend that teaches.  He is trying to get me started.  I really would like to do it.  Thanks for your post!

Feb 13, 2010 06:03 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Can you please give some examples as to what you learned from this course that you didn't know about before? 

I personally think their 47% success rate is because of their methodology. I believe they teach submitting the highest and best offer, which will kill your short sale.

Feb 13, 2010 04:17 PM
Ray Wright
Keller Williams Realty - Riverside, CA
SoCal Realtor - A.L.C.

Specifics please...I was considering taking the course at least for the designation.  I want to know if it's worth it educationally.

Feb 13, 2010 04:56 PM
Mike Miguelez
Keller Williams Realty - DTC - Superior, CO

Some of the things that I found helpful were being informed of changes occuring with short sales as the government continues to search for a better way of dealing with this mess. For example that REO Trans has expanded their asset management business and now provides a short sale service for banks. This will hopefully streamline and speed up the process, if using a service like this gains momentum with the banks,

At times I'm not following government programs as closely as I should. For example I gained a deeper understanding of the following programs:

SCRA -  Servicemembers Civil Relief Act for helping clients in the military.

HARP - Home Affordable Refinance Program

HAMP - Home Affordable Mortgage Program

Even though these programs are only marginally successful, I feel that my clients should be aware of them as possible ways to avoiding a foreclosure.

One fortuitous issue discussed was regarding a Deed in Lieu of Foreclosure. To date I have not met anyone who has done this with a lender. And, although I understood why the first position would accept this, I also hadn't thought about a scenario that also contains a second, or third, and how a Deed in Lieu would impact the situation. Bottom line, accepting a Deed in Lieu poses a huge risk for the first since they would be accepting a title that may contain encumberances.

I had a listing presentation that evening and the seller mentioned that a friend had suggested a Deed in Lieu. I was able to address their concerns better than I would have been able to prior to the class.

Satar, their pricing strategy is something I didn't agree with. They recommended at the time of listing to have a signed addendum with 4 pre-approved price reductions, to be executed every two weeks until an offer came in. Part of the reasoning is that this is the way banks typically handle their REOs so it's a system that they're familiar with. I disagree and prefer to price the home on where I think that the respective neighborhood's trend will be in 6 months from when we sign the listing agreement. This gives me better odds of attracting a new buyer if the first buyer drops out.

They do provide a lot of additional CYA contracts, and yes, I did like their methodology for working with banks.

Hope this helps.

 

Feb 13, 2010 05:58 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Thanks Mike. I have a hybrid approach. I list at the high end, with a systematic price reduction like what they teach. However, like you, I want to be in a position where I can have the buyer pay for lender non-allowables, such as commission reductions, HOA deliquencies or whatever got rejected on the HUD. So I take that high offer and ask the buyer's agent to re-write it to a price I think I can get it at for a time in the future where the short sale will be approved at. That way, the buyer will be more than happy to pay for items not approved on the HUD. For example, if the buyer was willing to pay 500k for a house where I think I can get it for 430k, then I will verbally counter the buyer's agent to re-write the offer for 430k and ask for closing costs and the moon. Then we'll see what the bank says. That way if the buyer walks, the property will be marketable. Nothing worse than submitting the 500k offer and the property is now worth 490k and the bank cut the commissions, refuse to pay deliquent HOAs and you have 30 days to close. It's this flaw in their teachings that give them a 47% success rate.

The problem with your approach is that you set the buyer's expectation low. So if you listed it at 430k and you have a bidding war which the highest and best offer is now 450k, then the buyer will usually not be willing to pay your commissions or for things that the lender rejected because thier initial view on value was 430k and they did you a favor by comming up to 450k. So you are usually left at a reduced commission and you might even have to contribute your commissions to close the deal.

Feb 14, 2010 05:40 AM
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

Thanks for responding to the question of what you learned that you didn't already know

Feb 14, 2010 09:39 AM
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

CDPE is not for everyone, as the  comments can attest for that .. .

Feb 14, 2010 09:44 PM
Brandon Watson
Team Sandy Blanton Realty, Inc. - Pensacola, FL
Short Sale Expert

Interesting. I signed up for the course and am optimistic I'll learn something but all of the above are things I already know and use...I always look at it like this: If I learn one thing that leads to a successful sale I wouldn't have otherwise had... it's worth the cost and then some! I also CDPE could be a good designation to utilize to show clients I took the extra step to learn and specialize in the field and I think it could be useful for referrals.

Feb 15, 2010 08:20 AM
Mike Miguelez
Keller Williams Realty - DTC - Superior, CO

Satar, I do like your approach. We actually do something similar with the Buyer and have a conversation where we set the expectation (at the time we accept an offer) that they're getting an awesome deal, but that when the Lender responds we may have to "go back to the well" and and come up with more money from the Buyer since the Sellers don't have it. I actually like your approach better - it fits well in the "under promise, over deliver" philosphophy. Thanks for sharing that.

Fernando, one of the agents I've mentored with is not CDPE certified. She's thinking about it, but honestly she knows Short Sales inside and out. At the end of the day, there's no substitute for experience - then it's not theory, it's know how that gets the job done.

Brandon, I agree with you regarding classes. For me this one worked out. But any time I can get a couple of pearls out of a class, then it was worth the price of admission (I'll let you know when my price of admission has been paid for ;-) ).

Thanks to everyone that has posted.

Feb 16, 2010 02:21 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

In my state, we have to disclose to the buyers in a certain fashion and manner if we want them to pay our commissions. Shoot me an e-mail at satarnag@amirifinancial.com and I can give you our disclosure and you can sit with your own real estate attorney and write up something similar. This disclosure has saved me a lot of money and has generated a lot of income as well.

My approach has given me a 95% success rate of closing short sales (not just getting them approved). I also don't pre-screen my clients and I accept everyone, even the ones without the hardships! I know CDPE has a pre-screen process they go through.

I also have had buyers stick around for over a year on Countrywide originated short sales! Not too many short sale agents can say that! ;)

Feb 17, 2010 08:45 PM