eCourse for Flipping Short Sales Module 1 Checklist
Seven Streams Flipping Short Sales MethodTM Lesson #7 Checklist - Building Your Profit Making Team ***This condensed version of the main lesson is for review purposes only. For an in-depth explanation of each of the items listed here, please refer to the main PDF file or the MP3 audio version.
What is the Seven Streams of Flipping Short Sales MethodTM? First of all, it’s a phenomenal method of buying distressed houses at wholesale prices and then flipping them without investing any of your money by selling them far enough below market value that you will have multiple offers and a signed buyer before you close on the property.
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team And it goes much further. When you started flipping and stopped FIXING, it will start your career in real estate the RIGHT way to: Short list Make money on most/all deals brought to you that pencil out. of benefits Work it while you have something else full time.
Don't fix things up, no painting, no fix up. Don't put in any more than a dollar of your own money. THIS IS A ZERO CASH TYPE OF FLIPPING SYSTEM.
You will help distressed homeowners avoid bankruptcy and foreclosure – you are doing good things for many people.
You will help others in the real estate industry make money in these economically depressed times.
Just as important, you will make a financial killing by learning the seven income streams that can be derived from these real estate transactions. At closing you won’t just receive one check, you’ll receive several checks. By the end of this week, you’ll specifically have the following things in place…
An understanding of how big the market is for short sale flipping.
The three different business models and why you want to use this one.
The five key members of your team, the specific skills they need and how to find them.
Your role on the team and what that means. Six ways you can generate deal flow.
THIS WEEK’S OBJECTIVE Helping you understand the current situation in the real What estate market relative to flipping short sales. You also you’re learn how to put a team in place that brings you the best going to short sale flipping deals and does most of the work to learn © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
2
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team complete the deals. That let’s you do many more deals and make much more money for the team while also helping many more people get out of a house they can no longer afford. This is about running your own business
In a few short weeks, you are going to know the ins and outs of running your own successful short sale flipping business. As we all know, there are millions of opportunities out there for you to help people that find themselves in a dire financial situation and at the same time you will be able to make yourself a very very comfortable living running your own business. Good for you, unfortunate for all the others that are facing the frightful prospect of loosing their jobs in this terrible economy. You on the other hand will thrive in this withering economy! The unfortunate truth is the economy shows no signs of turning around and millions upon millions of people are going to be facing bankruptcy and foreclosure. They have no hope of selling their property for what they owe the bank. They need your help. This will go on for years to come. In some parts of the country, house prices are falling at 2% each month. That’s 24% a year. Even when the economy finally hits bottom, it will be many years before house prices come anywhere close to what these people paid for them. And many of these people are trapped in predatory loans. It’s so bad that the Federal Government has step in to try to fix a portion of the problem with loan modifications. People are trying to get loan mods. More are being granted The result is usually a payment they can barely afford on
a house they don’t really own. They think, “why not rent and save the aggravation of
owing more than their home is worth?” The economic situation is not improving. © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
3
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Wages are at all time lows. People are carrying more debt than ever before. It’s bad It has taken years to get in this mess and will take years to get out. on many fronts Unemployment continues to rise. There is no recovery in sight. Housing prices are continuing to drop. Record numbers of homes are upside down. Lenders already ready have record setting numbers of REO
on their books and much more foreclosure inventory is in the pipeline. All of this means many many people have a vested interested in short sales. And short sales can be some of the easiest sales to make: Sellers don’t really care how much they sell the house for Why short because they’ll never receive a penny. sales are easier Takes away the seller’s emotion in the sale. than Takes away the seller’s desire to get the highest possible others price. think Lenders don’t want more houses back. Also, lenders are being PAID to do short sales in many
cases under the Obama plan. Most agents and brokers think short sales are very difficult
– maybe if they don’t have a process like the Seven Streams Flipping Short Sales MethodTM. They would rather give short sales to you so long as they still get their commission.
Introducing the Seven Streams Flipping Short Sales MethodTM
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
4
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team This system works: Even if you never leave your office or house. Start part time or full time. If you are an agent, broker, loan officer, or lawyer, etc. Works if you are none of the above. Does require more than literally a few dollars but not
much more. There are millions of deals to be had, plenty for you and
everyone else. Earn income up to 7 different ways using this method
The name Seven Streams Flipping Short Sale MethodTM gets it’s name from the fact that there are potentially seven separate income streams, which is phenomenal. You won’t necessarily enjoy all seven but you will benefit from many. What you’ll learn from this eCourse: The three different short sale business models. How to build the perfect short sale team that brings deals
to you and does most of the work. How to submit a unique short sale package, contract, and
offer using ethical secrets and tricks that get the short sale offer accepted by the skeptical lender. How to create as many as seven streams of income when
the money is distributed at closing. The Three Business Models for a Short Sale 1. Traditional – an agent for a broker making a commission on a short sale. 2. Negotiator – negotiating short sales on behalf of a real estate office or individual homeowners, or law firms. Actually doing the leg work to build the short sale packages and following through with the lenders. © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
5
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team 3. Flipping – working as a principle Don’t bypass the agent or broker – these people will make you money. Team mentality. Make sure everyone on your team is well compensated. Realtors make you money – they don’t cost money
Many in the real estate flipping field try to sell the house “For Sale By Owner” instead of using an agent. On average, they sell for 15% less to save 6% commission. They walk away with 9% less while doing all the work. Pay the 6% commission, do much less work, and earn more using the Seven Streams Flipping Short Sales MethodTM. You direct the operations. Your team does most of the work. Everyone is well compensated for the each deal.
Your “Assignment” for Stage #1 Write a list of pros and cons concerning flipping short sale as a principle using the team approach. Keep the list handy as you work through the entire eCourse. If at the end of the course any cons out way the pros, I want to hear what they are. There may still be answers. Send any questions or comments about the material to me by logging into the Lesson page at http://www.sevenstreamsflipping.org/e-classes2
The Perfect Short Sale Team As the principle and team leader it’s important that you have a clear understanding what each team member’s responsibility is. You should know every step in those responsibilities. You should be able to step in for any team member at any time.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
6
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team A View of the Team Team As the principle, you buy the property through a purchase mentality agreement and option agreement. Then you relist it with the is critical same agent that brought you the deal to start with. This let’s them have both the original listing commission and the listing commission on the flip – a round trip. Brokers Bring You Deal Flow You only want to work with top producers. That’s how you create deal flow. Many are already working on REO and new construction if there is still any occurring in your region. This is where you look for the top producers. When you find one, here is your sales pitch to bring them onto your team“Here’s the deal, I know you’re a top producer. I know your time is valuable. I know you want to focus on what you’re good at rather than negotiating short sales. You need to be out on the street selling houses, meeting people, and making contacts. That’s what you do for a living. What I do is negotiate short sales. I have the rest of the team together to do the balance of the work. All I need you to do is have the listings, take some really good photos, meet the lenders agent for the BPO, and resell the house for a second commission.” Team Member – Short Sale Negotiator The short sale negotiator can be anyone one the team. It can be This should you, it can be a broker, it can be an attorney, or you can hire be your someone to do it. It’s probably a good role for you to take on role unless you know someone else would be better at. A key aspect of the negotiators role is to get a very accurate valuation of the property. That’s where the most money is made from the Seven Streams Flipping Short Sales MethodTM. And you’re © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
7
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team the one taking the training to make this happens. Therefore, you’re probably the right one to take on this important role. Team Member – Real Estate Attorney This is another critical team member. Find a good real estate attorney – not your family attorney that you hired to settle a dispute with your neighbor. A good specialized real estate attorney. Show them the blueprint of what you want to do (what you’re learning here). Ask them if they can set up the exact paperwork you’ll use to get it done. And if they can review each of your early transactions. You want an attorney with answers in minutes not days
It needs to be an attorney that will take your calls and questions real time. Not someone that wants you to schedule an appointment a week from tomorrow. Your attorney is there for consultations when you need them. You will compensate them well and they will go to work for you. You want an attorney that will find a way for you to get things done legally. They’ll find a way to structure tough deals. Not one that takes the easy way out by saying it can’t be done. Here’s a really good reason to use an attorney. They all carry liability insurance in case something goes wrong – if they give bad advice. Indirectly that insurance transfers to every deal you make based on his/her advice and using the paperwork they create for you.
Team Member – Lender Negotiator Realize this Also known as a loss mitigator, their job is to present information one is on to the decision maker. To help the decision maker come to wise your team business decisions.
even if you can’t choose They are a team member, although not one you get to select to them
be on your team. Your job, as the short sale negotiator, is to get them to view the property the same way you do.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
8
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Always show respect to them. Never yell at them. Never tell them that their view is wrong. Show them the evidence that will change their incorrect perception. Never be adversarial towards them. They are brokering the deal between you and the final decision maker. They are also a gatekeeper. The loss mitigator must make sure all the accurate and necessary information is available to the decision maker. Photos are key here. To convince them, make sure they have absolutely everything they ask for. We’ll go into this in great detail. Team Member – Title Company and Loan Officer This is whoever handles escrow or closing. It may change depending on the particular deal. You need to provide full disclosure upfront that you are flipping the house. There are specific attorneys or title companies in your area that the bulk of the deals will go through. The busiest. Get them familiar with what you are doing and your paperwork. The escrow agent or closing office will be dictated by the final buyer but you can influence who it will be. Those are the primary team members. These people will change with each deal. You’ll have several brokers bringing you deals and will work with some more than others. Your attorney will be the same on almost every deal unless you run into something peculiar and he refers you to another attorney.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
9
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Your “Assignment” for Stage #2 Write a list of skills, qualities, and characteristics you want to see in each team member you can choose to influence. Definitely your attorney, and the brokers. Also the closing agents. Send any questions or comments about the material to me by logging into the Lesson page at http://www.sevenstreamsflipping.org/e-classes2
Finding Deal Flow While a good broker will be your best source for finding profitable short sales, it doesn’t have to be your only source. Bankruptcy Attorneys Bankruptcy lawyers are another good source. There are several different ways you can convince bankruptcy attorneys to refer short sales to you. The first way is a free way. You simply agree to do mutual referrals. There will be times when a homeowner comes to you asking you to buy there house with a short sale when won’t be a doable deal. Maybe it involves a lender that won’t allow you enough of a spread for an acceptable profit. Or some other reason you just can’t make the deal work. The homeowner still needs a solution to their financial problem and at times that means having to file bankruptcy. You refer them to the bankruptcy attorney. Of course, you need to make sure you are working with a top-notch attorney. You don’t want to refer people to an incompetent attorney – it will damage your reputation in the industry. And your reputation needs to be rock solid in the short sale flipping business. People need to be able to trust that you will complete the deal when you tell them you will flip their house in a short sale. That © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
10
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team means being able to trust your word about everything in the business. Another way is to pay out a commission for the referral. You can either pay a small commission for every referral sent your way or pay a larger referral commission only for those that turn into completed deals. Although you have the option, its better to go with the larger commission for completed deals. The reason being that the bankruptcy lawyer isn’t going to be nearly as familiar with what constitutes a good deal for you. Quite possibly, they will make referrals that you can’t qualify. And there’s a difference between choosing the mutual referral method or the commission method. The mutual referral method limits you to the number of bankruptcy attorneys that you can work with. Unless you are referring a lot of people to bankruptcy (hopefully not) you will have a limited number of referrals and will need to limit mutual referrals to a single lawyer. On the other hand, if you offer a commission you can accept referrals from several attorneys. Easy Tip: Be sure to check the laws in our area to be sure that paying commissions to attorneys or other is not against the law or goes against a realtor association rules or the legal bar rules. Mortgage Brokers You can make similar arrangements with most anyone in the industry. Mortgage brokers are a good source for short sale referrals. They are contacted by people looking to refinance their home only to learn that’s not possible because the amount they need to finance is up side down compared to the value of the home. Mortgage brokers can be a great source for finding short sales in these tough economic times.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
11
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Likewise, you can refer business to the mortgage broker through your end buyers on the flip. The same things apply here as with the bankruptcy lawyer. You can either use mutual referrals or offer a commission for deals that go through. Your “Assignment” for Stage #3 Create a list of possible bankruptcy attorneys in your area that you want to consider for referrals. Do the same for a few mortgage brokers. Just make a list, don’t contact them until you have finished the course and can knowledgably discuss short sale flipping with them. Begin drafting marketing materials. Send any questions or comments about the material to me by logging into the Lesson page at http://www.sevenstreamsflipping.org/e-classes2
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
12
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team If you need any assistance at all in working through or understanding the assignments, login to the Lesson page at: www.sevenstreamsflipping.org/e-classes and let me offer suggestions, give feedback, etc. for each of these assignments. If you need help, I’m here! (or if you have any questions about the lesson at all!)
Richard Geller Publisher, Seven Streams Flipping Short Sales MethodTM
P.S. Be sure to review all of the materials that are included with this week’s curriculum package. You should have received five other pdf files: 1. eCourse for Flipping Short Sales Module 1 – Building Your Team 2. eCourse for Flipping Short Sales Module 1 – Information Checklist 3. eCourse for Flipping Short Sales Module 1 - Counseling Sellers About Credit Counselors 4. eCourse for Flipping Short Sales Module 1 - Counseling Sellers About Debt Collectors 5. eCourse for Flipping Short Sales Module 1 - Counseling Sellers About Deficiency Judgments
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
13
What is the Seven Streams of Flipping Short Sales MethodTM? First of all, it’s a phenomenal method of buying distressed houses at wholesale prices and then flipping them without investing any of your money by selling them far enough below market value that you will have multiple offers and a signed buyer before you close on the property.
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team And it goes much further. When you started flipping and stopped FIXING, it will start your career in real estate the RIGHT way to: Short list Make money on most/all deals brought to you that pencil out. of benefits Work it while you have something else full time.
Don't fix things up, no painting, no fix up. Don't put in any more than a dollar of your own money. THIS IS A ZERO CASH TYPE OF FLIPPING SYSTEM.
You will help distressed homeowners avoid bankruptcy and foreclosure – you are doing good things for many people.
You will help others in the real estate industry make money in these economically depressed times.
Just as important, you will make a financial killing by learning the seven income streams that can be derived from these real estate transactions. At closing you won’t just receive one check, you’ll receive several checks. By the end of this week, you’ll specifically have the following things in place…
An understanding of how big the market is for short sale flipping.
The three different business models and why you want to use this one.
The five key members of your team, the specific skills they need and how to find them.
Your role on the team and what that means. Six ways you can generate deal flow.
THIS WEEK’S OBJECTIVE Helping you understand the current situation in the real What estate market relative to flipping short sales. You also you’re learn how to put a team in place that brings you the best going to short sale flipping deals and does most of the work to learn © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
2
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team complete the deals. That let’s you do many more deals and make much more money for the team while also helping many more people get out of a house they can no longer afford. This is about running your own business
In a few short weeks, you are going to know the ins and outs of running your own successful short sale flipping business. As we all know, there are millions of opportunities out there for you to help people that find themselves in a dire financial situation and at the same time you will be able to make yourself a very very comfortable living running your own business. Good for you, unfortunate for all the others that are facing the frightful prospect of loosing their jobs in this terrible economy. You on the other hand will thrive in this withering economy! The unfortunate truth is the economy shows no signs of turning around and millions upon millions of people are going to be facing bankruptcy and foreclosure. They have no hope of selling their property for what they owe the bank. They need your help. This will go on for years to come. In some parts of the country, house prices are falling at 2% each month. That’s 24% a year. Even when the economy finally hits bottom, it will be many years before house prices come anywhere close to what these people paid for them. And many of these people are trapped in predatory loans. It’s so bad that the Federal Government has step in to try to fix a portion of the problem with loan modifications. People are trying to get loan mods. More are being granted The result is usually a payment they can barely afford on
a house they don’t really own. They think, “why not rent and save the aggravation of
owing more than their home is worth?” The economic situation is not improving. © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
3
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Wages are at all time lows. People are carrying more debt than ever before. It’s bad It has taken years to get in this mess and will take years to get out. on many fronts Unemployment continues to rise. There is no recovery in sight. Housing prices are continuing to drop. Record numbers of homes are upside down. Lenders already ready have record setting numbers of REO
on their books and much more foreclosure inventory is in the pipeline. All of this means many many people have a vested interested in short sales. And short sales can be some of the easiest sales to make: Sellers don’t really care how much they sell the house for Why short because they’ll never receive a penny. sales are easier Takes away the seller’s emotion in the sale. than Takes away the seller’s desire to get the highest possible others price. think Lenders don’t want more houses back. Also, lenders are being PAID to do short sales in many
cases under the Obama plan. Most agents and brokers think short sales are very difficult
– maybe if they don’t have a process like the Seven Streams Flipping Short Sales MethodTM. They would rather give short sales to you so long as they still get their commission.
Introducing the Seven Streams Flipping Short Sales MethodTM
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
4
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team This system works: Even if you never leave your office or house. Start part time or full time. If you are an agent, broker, loan officer, or lawyer, etc. Works if you are none of the above. Does require more than literally a few dollars but not
much more. There are millions of deals to be had, plenty for you and
everyone else. Earn income up to 7 different ways using this method
The name Seven Streams Flipping Short Sale MethodTM gets it’s name from the fact that there are potentially seven separate income streams, which is phenomenal. You won’t necessarily enjoy all seven but you will benefit from many. What you’ll learn from this eCourse: The three different short sale business models. How to build the perfect short sale team that brings deals
to you and does most of the work. How to submit a unique short sale package, contract, and
offer using ethical secrets and tricks that get the short sale offer accepted by the skeptical lender. How to create as many as seven streams of income when
the money is distributed at closing. The Three Business Models for a Short Sale 1. Traditional – an agent for a broker making a commission on a short sale. 2. Negotiator – negotiating short sales on behalf of a real estate office or individual homeowners, or law firms. Actually doing the leg work to build the short sale packages and following through with the lenders. © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
5
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team 3. Flipping – working as a principle Don’t bypass the agent or broker – these people will make you money. Team mentality. Make sure everyone on your team is well compensated. Realtors make you money – they don’t cost money
Many in the real estate flipping field try to sell the house “For Sale By Owner” instead of using an agent. On average, they sell for 15% less to save 6% commission. They walk away with 9% less while doing all the work. Pay the 6% commission, do much less work, and earn more using the Seven Streams Flipping Short Sales MethodTM. You direct the operations. Your team does most of the work. Everyone is well compensated for the each deal.
Your “Assignment” for Stage #1 Write a list of pros and cons concerning flipping short sale as a principle using the team approach. Keep the list handy as you work through the entire eCourse. If at the end of the course any cons out way the pros, I want to hear what they are. There may still be answers. Send any questions or comments about the material to me by logging into the Lesson page at http://www.sevenstreamsflipping.org/e-classes2
The Perfect Short Sale Team As the principle and team leader it’s important that you have a clear understanding what each team member’s responsibility is. You should know every step in those responsibilities. You should be able to step in for any team member at any time.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
6
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team A View of the Team Team As the principle, you buy the property through a purchase mentality agreement and option agreement. Then you relist it with the is critical same agent that brought you the deal to start with. This let’s them have both the original listing commission and the listing commission on the flip – a round trip. Brokers Bring You Deal Flow You only want to work with top producers. That’s how you create deal flow. Many are already working on REO and new construction if there is still any occurring in your region. This is where you look for the top producers. When you find one, here is your sales pitch to bring them onto your team“Here’s the deal, I know you’re a top producer. I know your time is valuable. I know you want to focus on what you’re good at rather than negotiating short sales. You need to be out on the street selling houses, meeting people, and making contacts. That’s what you do for a living. What I do is negotiate short sales. I have the rest of the team together to do the balance of the work. All I need you to do is have the listings, take some really good photos, meet the lenders agent for the BPO, and resell the house for a second commission.” Team Member – Short Sale Negotiator The short sale negotiator can be anyone one the team. It can be This should you, it can be a broker, it can be an attorney, or you can hire be your someone to do it. It’s probably a good role for you to take on role unless you know someone else would be better at. A key aspect of the negotiators role is to get a very accurate valuation of the property. That’s where the most money is made from the Seven Streams Flipping Short Sales MethodTM. And you’re © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
7
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team the one taking the training to make this happens. Therefore, you’re probably the right one to take on this important role. Team Member – Real Estate Attorney This is another critical team member. Find a good real estate attorney – not your family attorney that you hired to settle a dispute with your neighbor. A good specialized real estate attorney. Show them the blueprint of what you want to do (what you’re learning here). Ask them if they can set up the exact paperwork you’ll use to get it done. And if they can review each of your early transactions. You want an attorney with answers in minutes not days
It needs to be an attorney that will take your calls and questions real time. Not someone that wants you to schedule an appointment a week from tomorrow. Your attorney is there for consultations when you need them. You will compensate them well and they will go to work for you. You want an attorney that will find a way for you to get things done legally. They’ll find a way to structure tough deals. Not one that takes the easy way out by saying it can’t be done. Here’s a really good reason to use an attorney. They all carry liability insurance in case something goes wrong – if they give bad advice. Indirectly that insurance transfers to every deal you make based on his/her advice and using the paperwork they create for you.
Team Member – Lender Negotiator Realize this Also known as a loss mitigator, their job is to present information one is on to the decision maker. To help the decision maker come to wise your team business decisions.
even if you can’t choose They are a team member, although not one you get to select to them
be on your team. Your job, as the short sale negotiator, is to get them to view the property the same way you do.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
8
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Always show respect to them. Never yell at them. Never tell them that their view is wrong. Show them the evidence that will change their incorrect perception. Never be adversarial towards them. They are brokering the deal between you and the final decision maker. They are also a gatekeeper. The loss mitigator must make sure all the accurate and necessary information is available to the decision maker. Photos are key here. To convince them, make sure they have absolutely everything they ask for. We’ll go into this in great detail. Team Member – Title Company and Loan Officer This is whoever handles escrow or closing. It may change depending on the particular deal. You need to provide full disclosure upfront that you are flipping the house. There are specific attorneys or title companies in your area that the bulk of the deals will go through. The busiest. Get them familiar with what you are doing and your paperwork. The escrow agent or closing office will be dictated by the final buyer but you can influence who it will be. Those are the primary team members. These people will change with each deal. You’ll have several brokers bringing you deals and will work with some more than others. Your attorney will be the same on almost every deal unless you run into something peculiar and he refers you to another attorney.
© 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
9
Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Your “Assignment” for Stage #2 Write a list of skills, qualities, and characteristics you want to see in each team member you can choose to influence. Definitely your attorney, and the brokers. Also the closing agents. Send any questions or comments about the material to me by logging into the Lesson page at http://www.sevenstreamsflipping.org/e-classes2
Finding Deal Flow While a good broker will be your best source for finding profitable short sales, it doesn’t have to be your only source. Bankruptcy Attorneys Bankruptcy lawyers are another good source. There are several different ways you can convince bankruptcy attorneys to refer short sales to you. The first way is a free way. You simply agree to do mutual referrals. There will be times when a homeowner comes to you asking you to buy there house with a short sale when won’t be a doable deal. Maybe it involves a lender that won’t allow you enough of a spread for an acceptable profit. Or some other reason you just can’t make the deal work. The homeowner still needs a solution to their financial problem and at times that means having to file bankruptcy. You refer them to the bankruptcy attorney. Of course, you need to make sure you are working with a top-notch attorney. You don’t want to refer people to an incompetent attorney – it will damage your reputation in the industry. And your reputation needs to be rock solid in the short sale flipping business. People need to be able to trust that you will complete the deal when you tell them you will flip their house in a short sale. That © 2009 SevenStreamsFlipping .org. All rights reserved. www.sevenstreamsflipping.org
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Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team means being able to trust your word about everything in the business. Another way is to pay out a commission for the referral. You can either pay a small commission for every referral sent your way or pay a larger referral commission only for those that turn into completed deals. Although you have the option, its better to go with the larger commission for completed deals. The reason being that the bankruptcy lawyer isn’t going to be nearly as familiar with what constitutes a good deal for you. Quite possibly, they will make referrals that you can’t qualify. And there’s a difference between choosing the mutual referral method or the commission method. The mutual referral method limits you to the number of bankruptcy attorneys that you can work with. Unless you are referring a lot of people to bankruptcy (hopefully not) you will have a limited number of referrals and will need to limit mutual referrals to a single lawyer. On the other hand, if you offer a commission you can accept referrals from several attorneys. Easy Tip: Be sure to check the laws in our area to be sure that paying commissions to attorneys or other is not against the law or goes against a realtor association rules or the legal bar rules. Mortgage Brokers You can make similar arrangements with most anyone in the industry. Mortgage brokers are a good source for short sale referrals. They are contacted by people looking to refinance their home only to learn that’s not possible because the amount they need to finance is up side down compared to the value of the home. Mortgage brokers can be a great source for finding short sales in these tough economic times.
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Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team Likewise, you can refer business to the mortgage broker through your end buyers on the flip. The same things apply here as with the bankruptcy lawyer. You can either use mutual referrals or offer a commission for deals that go through. Your “Assignment” for Stage #3 Create a list of possible bankruptcy attorneys in your area that you want to consider for referrals. Do the same for a few mortgage brokers. Just make a list, don’t contact them until you have finished the course and can knowledgably discuss short sale flipping with them. Begin drafting marketing materials. Send any questions or comments about the material to me by logging into the Lesson page at http://www.sevenstreamsflipping.org/e-classes2
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Seven Streams Flipping Short Sales MethodTM Lesson #7: Building Your Profit Making Team If you need any assistance at all in working through or understanding the assignments, login to the Lesson page at: www.sevenstreamsflipping.org/e-classes and let me offer suggestions, give feedback, etc. for each of these assignments. If you need help, I’m here! (or if you have any questions about the lesson at all!)
Richard Geller Publisher, Seven Streams Flipping Short Sales MethodTM
P.S. Be sure to review all of the materials that are included with this week’s curriculum package. You should have received five other pdf files: 1. eCourse for Flipping Short Sales Module 1 – Building Your Team 2. eCourse for Flipping Short Sales Module 1 – Information Checklist 3. eCourse for Flipping Short Sales Module 1 - Counseling Sellers About Credit Counselors 4. eCourse for Flipping Short Sales Module 1 - Counseling Sellers About Debt Collectors 5. eCourse for Flipping Short Sales Module 1 - Counseling Sellers About Deficiency Judgments
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