Over the last several posts, I’ve mentioned what you may already see as an obvious reality, that being the current challenges in working the mortgage business. After all, what are the formal mortgage broker training, attendance at mortgage seminars, and time and effort that you’ve put in doing for you now? There has to be something else in today’s market. As someone who has had mortgage loan training and who I’m sure pays attention to the news and realizes how many foreclosures are out there right now, aren’t you ready to learn how you can profit from the current real estate economy and, in doing so, earn 10 times what you would make for simply originating a loan?
Now that you’ve completed the Quick Start Guide portion of my online posts, let’s dive into the next series of material, which covers how to effectively market your preforeclosure business. Remember that my entire short sale course for mortgage brokers has nine main subjects that it will cover. So, let’s start by quickly reviewing all of the topics that will be covered over the next several posts.
<!--[if !supportLists]-->ü <!--[endif]-->Types of offers you will be making to motivated sellers
<!--[if !supportLists]-->ü <!--[endif]-->Benefits of a business model that focuses on pre foreclosure
<!--[if !supportLists]-->ü <!--[endif]-->The 3 M’s of Marketing Part I – Your Market
<!--[if !supportLists]-->ü <!--[endif]-->The 3 M’s of Marketing Part II – Your Message
<!--[if !supportLists]-->ü <!--[endif]-->The 3 M’s of Marketing Part III – Your Media
<!--[if !supportLists]-->ü <!--[endif]-->Marketing budgets
<!--[if !supportLists]-->ü <!--[endif]-->Implementing your marketing plan
Trust me when I tell you that your business is only as effective as how you market it. For this reason, the next several posts will be very important to your overall success. Now, let’s go into the heart of this week’s lesson. With any type of real estate investment purchase, there are a number of ways to buy and pre foreclosures are no different. What may differ in helping a client work through the foreclosure process is how they want to proceed. Many sellers see the light and realize that their best option is to sell the home. In this case, there are three primary options for you to work with them to help stop foreclosure:
<!--[if !supportLists]-->1) <!--[endif]-->A “subject to” purchase, where you help them remedy their default with the lender and continue making their payments until you can sell the home. Although we will cover how this type of deal is structured, foreclosure laws may vary from state to state so make sure you understand how to best proceed where you live and invest.
<!--[if !supportLists]-->2) <!--[endif]-->A real estate short sale purchase, where you help the client negotiate a discounted payoff with the lender
<!--[if !supportLists]-->3) <!--[endif]-->A wholesale purchase, where you get a pre foreclosure property under contract with the seller and then assign the contract to another investor for a fee
Every pre foreclosure deal is different and so too should be your decision in how to purchase each deal you come across in your real estate investing business. Sometimes, though, sellers may be in a position to stay in their homes and there are also ways to help them accomplish this. These include:
<!--[if !supportLists]-->ü <!--[endif]-->Helping them work out an arrangement with their lender
<!--[if !supportLists]-->ü <!--[endif]-->Helping them refinance their current loan
<!--[if !supportLists]-->ü <!--[endif]-->Arranging a lease back where they repurchase the home from you at a later date (this strategy is a sensitive one when it comes to state foreclosure laws so be sure you research this one thoroughly before ever doing it!)
With all of these options, there are likely few real estate foreclosures for which you will be unable to at least have some idea how to best pursue a solution. Since you are in the mortgage lending business already, the idea of marketing your services should be something that you are well on top of, again a huge advantage you have over other investors. The mortgage lending business is intimately tied to real estate and puts you in a great position to profit from the booming preforeclosure market. Please take the time to review the action steps and tips from all of my recent posts and make sure you’ve paid attention because we’re going to move onward and forward and I want you to be in an ideal position to act upon what you are learning. Stay tuned, I have so much more to share with you, and all the best to you in success.
The Short Sale Expert to Mortgage Brokers
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