| Inevitably, the bank is only going to recoup somewhere around 70% of the value of the property they have foreclosed on. That's why banks are often so ready to take short sales on foreclosures. The natural follow-up to that is, “Why are foreclosures such a hot commodity right now, and why is there a lot of buzz about them?” There are several reasons to that too, and it's really scaring the banks right now. That means it is time for you to cash IN -- by asking for SHORT SALES. | NAVIGATION Learn to Write * Tips for writing better * Books for writers * Cafe Hemingway * Learn how to Hyphen-ate * Easy Research for writers * Big Screen writing * Proposals for Nonfiction * Free Plots to use * Ring in Writing Assignments |
| Before I begin, you should know my name is Ross Treakle and I interview real estate investors as part of my job. In each interview I try and pick and pry at each investor to get the highest quality information so that my subscribers can hear up to date, high content interviews. Below I have taken an excerpt from the very first interview I ever conducted. I conducted this interview with my brother, Graham “Mr. Banker” Treakle. Graham is a short sale investor with special insider knowledge as he has worked in some of the nation's largest banking institutions. I always start off every interview asking the speaker to speak briefly about their particular area of expertise. Below is Graham's answer to what a short sale is and why banks accept short sales. “We'll go over the numbers, Ross. A short sale is pretty simple. If you have a property that's worth $150,000 and let's say it has a first mortgage for $100,000 and a second mortgage for $40,000-what that means is the total debt on that property, or the total mortgages, is $140,000. Being a real estate investor, I wouldn't want to buy a $150,000 house for $140,000. It doesn't make sense. A short sale is when you get the bank to not take $140,000, you get them to take less, like $110,000. The banks are going to do this for several reasons. First, they're going to have a lot of expenses that are associated with a foreclosure. They're going to have realtor's costs, foreclosure costs, holding costs, repair costs-they're going to have all sorts of fees associated with a foreclosure. | How To Buy Land At Tax Sales * Sample Tax Land Bargains * Make A Fortune, without investing money * Free Land? * Foreclosures Made Easy * 30,000 foreclosure listings * Is There ANY free desert land left? * The No Money Down TRAP! * Be Your Own Banker * Make Sellers Beg You To Take Their Property! * Bargains from the Bureau of Land Management * Professional Business Cards * Credit Repair * Search for Cheap Homes in Your Area * Grab Your Own Domain Name * Do Better Drive By Inspections * Real Estate Help * Real Estate Tools * Real Estate Gurus Ahead * The Money Train Principle * Build Your Own Web Site * Tax Property Agencies * Real Estate Demographics * |
| Inevitably, the bank is only going to recoup somewhere around 70% of the value of the property. That's why banks will take short sales on foreclosures. The natural follow-up to that is, “Why are foreclosures such a hot commodity right now, and why is there a lot of buzz about them?” There are several reasons to that too, and it's really scaring the banks right now. The first one is: when I was at the bank and someone had equity in their home and I found out they had equity, I would call them up and say, “Hey, Mr. Smith, I see you have $30,000 in equity in your home. How would you like to get a home equity line of credit?” Or, “How would you like to pay off that car with a home equity loan?” | Cover Yourself With a Lease Agreement * Interest Only Mortgages * SUBJECT TO Real Estate Deals Explained * Basics of Real Estate Investing * Explore EVERYTHING that Tale Wins has to offer * If you investigate a move to Canada you will discover that you must Seven Smart Ways To Give Your Money Away Creatively. How many times have you just forked your money over as a gift and hoped it would mean something to the receiver? You were probably disappointed hundreds of times. Well here are seven ways to make that money look more valuable, and to show the other person that you really care. |
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| They aren't going to be able to afford them because they didn't count on it, and also because inflation is outpacing wage growth. All of this sounds great, but you may say, “How is that going to affect my business?” Here's the way it affects your foreclosure real estate business. If you're in a judicial foreclosure State, where properties that are in foreclosure go through a judicial process before a foreclosure is complete; or a non-judicial foreclosure State, where the properties go through a trustee as they're going through a foreclosure-you're going to see less and less equity in these properties. So if you know, like I said earlier, that banks are going to take short sales because of the numbers-meaning they have to pay all of these expenses-and the foreclosed properties aren't going to have a lot of equity in them, you have to be able to negotiate short sales effectively if you're going to be working in the foreclosure market. The foreclosure market represents the most motivated sellers. Traditionally, with motivated sellers, you'll find really good deals. That's why banks are going to take foreclosures on the conditions that are spurring on all these foreclosures. It's an amazing phenomenon that we're working on right now. Folks might also ask about a common [inaudible]. Well, what if we're in a real estate bubble? If we're in a real estate bubble, that means values are going to go down, which means folks are going to owe more than what their property is worth. Again, negotiating short sales is going to be critical to your success in the foreclosure business. If we're not in a bubble, that's fine too. We already [backed out] the numbers; still negotiating short sales is going to be critical to your real estate business because people are borrowing up to, and sometimes above 100% of the value of their property. Whatever way you slice it, as far as having a skill, negotiating short sales is probably, in my opinion, one of the most lucrative skills that someone can have as a real estate investor.” I hope the above information gives you some insight into the world of real estate investing and short sales. Graham has worked very hard at becoming an expert on this topic and is a resource you should inevitably add to your business. If you would like to hear more information similar to this exert and many other interviews please visit my site at and sign up to receive all of my interviews at absolutely no cost. Also, if you would like to learn more about Graham “Mr. Banker” Treakle you can follow this link to his website. |