Good Evening Friends,
I need some help here....I am very confused. I want to see what your opinion is about a matter I am having a problem with...
If someone buys a training program - uses ALL the coaching (three months), takes the ENTIRE three month course, KEEPS all the programs - is this person entitled to a full refund?
Please let me know what you think...
Now - on to business... I get so many calls from people who are having a hard time finding a title company or understanding their role in the closing. Maybe this will help...
Title companies can be found through numerous sources. Your real estate broker may be able to recommend a trustworthy company that you can try. It is good to know that people you respect use a particular title company that they like well enough to recommend.
Meet with a representative at the title company to discuss how the company can service your needs. Title companies handle closings, sometimes called settlements. A title company performs title searches. This is a search, sometimes called an abstract search, through the title of the property beginning with the original owner and continuing through the current owner. This search is performed to locate any unpaid liens or judgments existing against the property or the owners of the property. Occasionally, a lien will be overlooked and for this reason title insurance is available. Once a title search is completed, and if clear, the title company will provide an owner's title insurance policy. This is a policy issued to you, at your option, to protect against arising liens or claims of ownership not found in the title search.
Generally, if a purchaser will be placing a mortgage against the property in order to purchase it, the mortgage holder will require a mortgagee's title insurance policy, which will be issued to them by the title company and paid for by the borrower. This policy is issued to the mortgage holder to insure against arising liens not found in the search.
When the title company receives a Contract For Sale and Purchase, including the earnest money deposit posted under the contract, it places that deposit in escrow. An escrow account, also known as a trust account, is a non-interest bearing bank account set up to hold a deposit until the closing occurs. The title company will prepare an escrow letter for the lender. This is a letter stating that a deposit is being held pending a certain contract. In most states, without a deposit being held, no valid contract exists, regardless of signatures.
The title company does not represent the seller or the buyer in the transaction and has no duty to protect their interest. The title company is being hired for a transaction. In order to fully protect your rights as a seller or a buyer, hire an attorney. As closing nears, the title search will be completed and a title commitment will be issued to the lender. This is a commitment to the lender that title is clear and a policy will be issued.
At closing, all agents, buyers, and sellers meet to execute the closing documents and exchange money, keys, and warranties (if any). The title company will either overnight mail or courier the deed, mortgages, etc. to the courthouse for recording. If you establish repeat business by using the same title company to purchase and then to sell, discuss reduction of your costs. Ask to pay "promulgated rate" for title insurance. This is the lowest rate (price) allowable by law that a title company can charge for title insurance.
Remember, almost all costs are negotiable.
Hope this helps...
Have a Blessed Evening,
Dwan
http://www.theieu.com/
About Me
- Dwan
- I started as a single mom with NO money, NO experience, and NO real estate license. I have been investing in foreclosures for almost 20 years and am considered one of the nations foremost experts on short sales, foreclosures, and just about anything related to real estate investing. My goal is to help you to become a superstar!
Friday, June 27, 2008
Wednesday, June 25, 2008
Thanks to Everyone
Hi Everyone,
I want to thank all of you so much for your support. Our book launched and we went to #1 on Amazon in four categories!
#1 Real Estate Book
#1 Business Book
#1 Business & Investing Book
#1 Professional and Technical Book
We also hit #3 for new releases and #4 for best sellers! Wow - I can't say thanks enough!
What a crazy week we have had and so much fun. If you haven't done so yet, please order a copy today. If you order from www.amazon.com and then email your receipt to www.dwan@theieu.com - you will get a bunch of FREE bonuses like - free training classes from several speakers and so much more.
I am already working on a new book for underwater homeowners. It is due out in January. I am hoping for the same great results.
Since I haven't been on for a few days, I want to cover a few short sale things....here is an excerpt from our new book...
I want to thank all of you so much for your support. Our book launched and we went to #1 on Amazon in four categories!
#1 Real Estate Book
#1 Business Book
#1 Business & Investing Book
#1 Professional and Technical Book
We also hit #3 for new releases and #4 for best sellers! Wow - I can't say thanks enough!
What a crazy week we have had and so much fun. If you haven't done so yet, please order a copy today. If you order from www.amazon.com and then email your receipt to www.dwan@theieu.com - you will get a bunch of FREE bonuses like - free training classes from several speakers and so much more.
I am already working on a new book for underwater homeowners. It is due out in January. I am hoping for the same great results.
Since I haven't been on for a few days, I want to cover a few short sale things....here is an excerpt from our new book...
HOW TO PRESENT YOURSELF TO THE BANK...
The package is ready. It’s time to contact the bank. The department you want to speak with is called Loss Mitigation. Believe it or not, loss mitigation reps can be very difficult to deal with. The key to success is to pin the rep down as to when you can expect an answer.
If you are dealing with a bank for the first time, you may want to call loss mitigation to confirm that they short sale before you spend time preparing the entire package.
All of the larger banks do:
- Washington Mutual
- Bank of America
- Wells Fargo
- Country Wide
- First Union
- Fifth/Third and so on.
- Option One
- Ocwen
- First Franklin
- Fairbanks
- Litton Loan Servicing
There are many more. The problem with calling the bank first is that you may get a new person who has no idea what a short sale is and tells you no, when, in fact, the bank does short sale. I prefer to prepare the package, call loss mitigation, and ask who I need to fax the package to in order to get my deal accepted. I assume that all banks will say yes.
Most banks do say yes to some sort of a short sale. If you have a property worth $100,000, with a $100,000 mortgage balance and the bank accepts $90,000, the bank considers that a short sale. It’s just not a short sale I would accept.
If the bank does not have a loss mitigation department, ask for the foreclosure department, work out department, loan modification department, late payment department, bankruptcy, or who ever helps homeowners in distress.
Give the seller’s name and loan number and ask for the representative who is handling the seller’s account. Once you have the right person on the line, ask for the fax number and fax the authorization to release while you are on the phone with the rep.
Before you begin dealing with the loss mitigation reps, it is important you understand the mind-set of this person. Most of these folks are overworked and underpaid. Some reps have as many as 500 files on their desk at any given time. Because these reps are so overwhelmed with their case loads, they often blow you off on the phone if you don’t appear to know what you are doing.
There are several ways to represent yourself to loss mitigation:
* As a friend - You could represent yourself as a friend trying to help. The problem with this approach is that the rep may think you have no experience and may not want to bother with you. On the positive side, the bank may like the fact that you are not a smooth talking investor.
* As an investor - As an investor the rep may think you are out to take advantage of the homeowners as well as make a killing from the banks loss. On the positive side, the rep may like the fact that you have experience and will be less trouble than someone with no experience.
* As a real estate agent (if you have a license) - As an agent the bank looks at you like a neutral third party, but may not have the confidence that you will follow through without a buyer as agents show houses, not purchase them. On the positive side, the bank may take your offer more seriously because you are an agent and are considered a professional.
You have to decide in which role are you most comfortable. I have used all three with great success. There is no right or wrong way to present yourself.
The key is let the rep know that you are easy to work with and will make the transaction as smooth as possible.
When speaking with the loss mitigation representative, always be professional and refer to the sellers by their first names as often as possible.
Bring as much emotion into the conversation with the rep as possible.
This will hopefully help the decision to accept a short sale become more meaningful rather than just financial.
Hope this helps.
Again....thanks for your support.
Have a Blessed Day,
Dwan
BTW - check out the video of Sharon and Juan's "Short Sale Baby" at my youtube page. www.youtube.com/dwanbenttwyford - it's great!
Tuesday, June 17, 2008
How To Recognize You Are In Trouble
Hi Folks,
We just got home from Iowa last night. Wow - the flooding is incredible....so much devastation. It makes me even more excited to move our training classes there. There are so many homeowners who need our help right now. The short sale opportunities will be amazing...
The more we travel, the more we see people in trouble. It stuns us how many homeowners get into trouble and don’t realize it until it is too late. One of the biggest problems is that many creative loans make it so easy to buy a house. In the early part of the 2000’s a bank would lend you money based on your debt to income ratio and your credit score. Back then, a maximum of 30 percent to 40 percent of your income could be used toward a mortgage payment. Meaning, if your monthly income is $2,000, you could qualify for a mortgage payment between $600 and $800 per month PITI– with the proper credit.
Banks figured that if you used more than 40 percent of your income for the mortgage payment, you would be “house poor.” If you used $800 of your $2,000 income for a mortgage payment, that leaves $1,200 for everything else.
Let’s look at what this could mean:
Income - $2,000
Mortgage - $800
Electric - $150
Car Payment - $300
Gas - $250
Phone - $100
Groceries - $400
Based on these very realistic figures, you are dead broke every month. What if you have a car repair, medical bills, need a home repair, need to buy clothes, or anything else? Where does the money come from? What about trying to save for retirement or trying to care for ailing parents?
Sometimes life just takes over, you have a problem, you use some of the money that should be used for the mortgage payment, and next thing you know – you’re one payment late, then two, then three, then the bank files foreclosure papers, and then everything spirals out of control.
Most Americans live paycheck to paycheck. The best way to stay ahead of the game is to control your debt. If you are a two-income family, our thought is to live on one paycheck. This way, if one of you gets sick and can’t work or if you fall victim to divorce, your lifestyle won’t change. We realize that right now may of you are thinking – no way could I possibly do that, our bills are too high. By living on one of the two incomes, you can get so far ahead – it would stun you.
If you are a one-income family, try living on 80 percent of your income. I realize how hard that can be, especially if you are a single parent. You must cut back, downsize your lifestyle, get a smaller house or apartment, drive a less expensive car, pay off credit card debt, save 10 percent of your income for emergencies, and don’t forget to tithe 10 percent of your income to God.
Don’t worry about keeping up with the neighbors. The neighbors aren’t going to pay your bills if you get into trouble. In fact, my guess is that most of your neighbors will gossip about you if you do get into trouble. It is sad how shallow our society has become. You don’t have to have the best of everything. You do need to be prepared for emergencies and hard times. Our economy isn’t going to pick up for several years and we don’t want to see you fall victim to the hard times that lay ahead.
If you have already fallen into hard times – don’t worry about it. We have so many great ideas for you and you can start over. Did you know that Henry Ford went bankrupt seven times? Think about it – he started a company and went bankrupt; started another company and went bankrupt; started another company and went bankrupt again; started yet another company and went bankrupt again; now it’s getting hard to read – he started another company and went bankrupt yet another time; with all the naysayers in his life he started another company and went bankrupt again; still not defeated, he started another company and went bankrupt again; then he started Ford Motor Company – who you may be making payments to right now.
If you look at the average life span, we live to be 75 or so. If you are in financial hardship and it takes you three years to recover, in the big picture, it’s not that much time. When you recover and start over, you’ll have many more good years than bad.
People tend to live above our means in this country. We have both traveled extensively around the world and we are the most spoiled country. Personally, we like living a spoiled lifestyle, but we didn’t come by it easy. We have both had financial problems in the past, been divorced, suffered foreclosures, and barely gotten by. Through a lot of hard work, cutting back, and many blessings from God, we were able to make it to the top percentage in the entire country.
In the mid 2000’s, the mortgage industry came up with what seemed like a good ideal at the time – easy loans to boost the economy. These loans were designed to give as many people as possible the chance to live the American dream – homeownership. People are often so focused on owning a home that they are willing to stretch themselves just to do it. This is where is all started to go downhill. Too many people went out on a limb. These creative loans did just what they were supposed to do - boosted the economy. The problem is that no one really thought it all the way through.
Over the next few weeks, I am going to offer advice to people who might be struggling as well as those of you who are or want to be investors.
Folks, remember - no matter how bad your day seems or how many problems you might be having - God loves you...and so do I!!!!
Dwan
www.youtube.com/dwanbenttwyford
We just got home from Iowa last night. Wow - the flooding is incredible....so much devastation. It makes me even more excited to move our training classes there. There are so many homeowners who need our help right now. The short sale opportunities will be amazing...
The more we travel, the more we see people in trouble. It stuns us how many homeowners get into trouble and don’t realize it until it is too late. One of the biggest problems is that many creative loans make it so easy to buy a house. In the early part of the 2000’s a bank would lend you money based on your debt to income ratio and your credit score. Back then, a maximum of 30 percent to 40 percent of your income could be used toward a mortgage payment. Meaning, if your monthly income is $2,000, you could qualify for a mortgage payment between $600 and $800 per month PITI– with the proper credit.
Banks figured that if you used more than 40 percent of your income for the mortgage payment, you would be “house poor.” If you used $800 of your $2,000 income for a mortgage payment, that leaves $1,200 for everything else.
Let’s look at what this could mean:
Income - $2,000
Mortgage - $800
Electric - $150
Car Payment - $300
Gas - $250
Phone - $100
Groceries - $400
Based on these very realistic figures, you are dead broke every month. What if you have a car repair, medical bills, need a home repair, need to buy clothes, or anything else? Where does the money come from? What about trying to save for retirement or trying to care for ailing parents?
Sometimes life just takes over, you have a problem, you use some of the money that should be used for the mortgage payment, and next thing you know – you’re one payment late, then two, then three, then the bank files foreclosure papers, and then everything spirals out of control.
Most Americans live paycheck to paycheck. The best way to stay ahead of the game is to control your debt. If you are a two-income family, our thought is to live on one paycheck. This way, if one of you gets sick and can’t work or if you fall victim to divorce, your lifestyle won’t change. We realize that right now may of you are thinking – no way could I possibly do that, our bills are too high. By living on one of the two incomes, you can get so far ahead – it would stun you.
If you are a one-income family, try living on 80 percent of your income. I realize how hard that can be, especially if you are a single parent. You must cut back, downsize your lifestyle, get a smaller house or apartment, drive a less expensive car, pay off credit card debt, save 10 percent of your income for emergencies, and don’t forget to tithe 10 percent of your income to God.
Don’t worry about keeping up with the neighbors. The neighbors aren’t going to pay your bills if you get into trouble. In fact, my guess is that most of your neighbors will gossip about you if you do get into trouble. It is sad how shallow our society has become. You don’t have to have the best of everything. You do need to be prepared for emergencies and hard times. Our economy isn’t going to pick up for several years and we don’t want to see you fall victim to the hard times that lay ahead.
If you have already fallen into hard times – don’t worry about it. We have so many great ideas for you and you can start over. Did you know that Henry Ford went bankrupt seven times? Think about it – he started a company and went bankrupt; started another company and went bankrupt; started another company and went bankrupt again; started yet another company and went bankrupt again; now it’s getting hard to read – he started another company and went bankrupt yet another time; with all the naysayers in his life he started another company and went bankrupt again; still not defeated, he started another company and went bankrupt again; then he started Ford Motor Company – who you may be making payments to right now.
If you look at the average life span, we live to be 75 or so. If you are in financial hardship and it takes you three years to recover, in the big picture, it’s not that much time. When you recover and start over, you’ll have many more good years than bad.
People tend to live above our means in this country. We have both traveled extensively around the world and we are the most spoiled country. Personally, we like living a spoiled lifestyle, but we didn’t come by it easy. We have both had financial problems in the past, been divorced, suffered foreclosures, and barely gotten by. Through a lot of hard work, cutting back, and many blessings from God, we were able to make it to the top percentage in the entire country.
In the mid 2000’s, the mortgage industry came up with what seemed like a good ideal at the time – easy loans to boost the economy. These loans were designed to give as many people as possible the chance to live the American dream – homeownership. People are often so focused on owning a home that they are willing to stretch themselves just to do it. This is where is all started to go downhill. Too many people went out on a limb. These creative loans did just what they were supposed to do - boosted the economy. The problem is that no one really thought it all the way through.
Over the next few weeks, I am going to offer advice to people who might be struggling as well as those of you who are or want to be investors.
Folks, remember - no matter how bad your day seems or how many problems you might be having - God loves you...and so do I!!!!
Dwan
www.youtube.com/dwanbenttwyford
Thursday, June 12, 2008
Common Newbie Mistakes
Hi Folks,
Bill and I are in Clinton, Iowa getting our space ready for our first training class. We are so excited to hold training classes here. Doing training in Iowa allows us to add a bus trip to our class! We are so excited about that. I love going on bus trips!
We try to buy one new rental each time we come here. We have a really cute place we just took over last month and are in the process of painting it for our new tenant. We had over 70 responses to our rental ad...it's crazy here.
We just returned from a 4-day class in Hawaii. Pete Youngs was gracious enough to take our class on a bus trip there. It is so much fun to meet new students who are looking to begin rehabbing. Whenever I meet new rehabbers or new investors of any kind - I always want to give some advice - so here goes...
I remember the excitement of being a new investor. I was so excited that I wanted to buy every deal that came my way. The excitement of “the deal” can get you into trouble. Because of that excitement many new investors don’t always look at the deal from an objective viewpoint.
I think one of the biggest mistakes new investors make is that they want to rehab the property themselves to save on the rehab costs. This is fine if you have the skill, the tools, and the time. Unfortunately, what I often see happen is that new investors try to work on the property on weekends and in their free time. BIG mistake!
Picture this, you worked hard all week and now the weekend is here and it’s time to work on your new rehab project. The first weekend is so exciting. You see such great results after the end of the weekend that you can’t wait until next weekend to do it again. The next weekend comes and you’re really tired, but it’s time to work on the house. You sleep in late on Saturday and end up putting in a half-day on Saturday and full day on Sunday. You still see results, but you are really tired and have to go back to work in the morning.
The third weekend comes and now you’re really beat from no time off for three weeks. You sleep in Saturday and work on Sunday. As each weekend passes, less work is getting done. Soon you are either exhausted or going every other weekend. Now several months have passed and you are making extra hard money payments, your property is still not finished, and you are beat.
What did you save? Nothing! It would have been cheaper to hire a crew and pay them as opposed to making extra hard money payments and burning yourself out. The worst part is, your property is still not sold!
Another mistake I often see is investors partnering with people they don’t really know because they don’t have the money to do the deal themselves. Just because you meet someone at one of the investment clubs, does not mean that person needs to be your partner. Take the time to investigate anyone you may be thinking of partnering with. Call a group leader and ask for a reference, ask the person for bank statements, go to the courthouse and see if they truly are buying and selling properties. Do your due diligence now, draw up a detailed partnership agreement (be sure to discuss loses), and pray for the best.
How about overextending yourself? I see many new investors, who have a few dollars saved, buy more than one property. Unless you have a lot of carrying money and free time, this can turn into a bad situation...fast. Do you have the time to oversee several crews, do you have the time to take all the ad calls, can you show the house everyday and then do open house on the weekends? Be care not to get so excited that you buy everything you see.
Until you have some first-hand experience, stick to one deal at a time, hire someone to do the rehab, and when the property sells, buy another. Being an investor is a great way to earn a living, just be cautious.
Folks....please take my advice. I can't tell you how may people I have seen go bankrupt trying to make it big as a real estate investor. Follow my advice and you'll do great!!!
Have a Blessed Day,
Dwan
BTW - Pray for all the people here in the Midwest. There is so much flooding. It's really sad. We are one block off the river and the water is high!!! Kinda un-nerving:-).
Bill and I are in Clinton, Iowa getting our space ready for our first training class. We are so excited to hold training classes here. Doing training in Iowa allows us to add a bus trip to our class! We are so excited about that. I love going on bus trips!
We try to buy one new rental each time we come here. We have a really cute place we just took over last month and are in the process of painting it for our new tenant. We had over 70 responses to our rental ad...it's crazy here.
We just returned from a 4-day class in Hawaii. Pete Youngs was gracious enough to take our class on a bus trip there. It is so much fun to meet new students who are looking to begin rehabbing. Whenever I meet new rehabbers or new investors of any kind - I always want to give some advice - so here goes...
I remember the excitement of being a new investor. I was so excited that I wanted to buy every deal that came my way. The excitement of “the deal” can get you into trouble. Because of that excitement many new investors don’t always look at the deal from an objective viewpoint.
I think one of the biggest mistakes new investors make is that they want to rehab the property themselves to save on the rehab costs. This is fine if you have the skill, the tools, and the time. Unfortunately, what I often see happen is that new investors try to work on the property on weekends and in their free time. BIG mistake!
Picture this, you worked hard all week and now the weekend is here and it’s time to work on your new rehab project. The first weekend is so exciting. You see such great results after the end of the weekend that you can’t wait until next weekend to do it again. The next weekend comes and you’re really tired, but it’s time to work on the house. You sleep in late on Saturday and end up putting in a half-day on Saturday and full day on Sunday. You still see results, but you are really tired and have to go back to work in the morning.
The third weekend comes and now you’re really beat from no time off for three weeks. You sleep in Saturday and work on Sunday. As each weekend passes, less work is getting done. Soon you are either exhausted or going every other weekend. Now several months have passed and you are making extra hard money payments, your property is still not finished, and you are beat.
What did you save? Nothing! It would have been cheaper to hire a crew and pay them as opposed to making extra hard money payments and burning yourself out. The worst part is, your property is still not sold!
Another mistake I often see is investors partnering with people they don’t really know because they don’t have the money to do the deal themselves. Just because you meet someone at one of the investment clubs, does not mean that person needs to be your partner. Take the time to investigate anyone you may be thinking of partnering with. Call a group leader and ask for a reference, ask the person for bank statements, go to the courthouse and see if they truly are buying and selling properties. Do your due diligence now, draw up a detailed partnership agreement (be sure to discuss loses), and pray for the best.
How about overextending yourself? I see many new investors, who have a few dollars saved, buy more than one property. Unless you have a lot of carrying money and free time, this can turn into a bad situation...fast. Do you have the time to oversee several crews, do you have the time to take all the ad calls, can you show the house everyday and then do open house on the weekends? Be care not to get so excited that you buy everything you see.
Until you have some first-hand experience, stick to one deal at a time, hire someone to do the rehab, and when the property sells, buy another. Being an investor is a great way to earn a living, just be cautious.
Folks....please take my advice. I can't tell you how may people I have seen go bankrupt trying to make it big as a real estate investor. Follow my advice and you'll do great!!!
Have a Blessed Day,
Dwan
BTW - Pray for all the people here in the Midwest. There is so much flooding. It's really sad. We are one block off the river and the water is high!!! Kinda un-nerving:-).
Saturday, June 7, 2008
Ace the BPO Everytime!
This is Gary Prescott. Gary runs our Apprentice Week in Florida. He is a superstar and makes millions every year and has since day one.
Watch as he does a live BPO - notice how he points out every detail- the floors, the smell, everything...it is so funny.
This is exactly how a BPO should go down....
OK ... OK ... I could not figure out how to copy the video from my YouTube page to here, so you'll have to go to my YouTube page to watch the BPO...sorry:-(
www.youtube.com/dwanbenttwyford
It's worth taking a look at - Gary is awesome!
Thanks,
Dwan
Watch as he does a live BPO - notice how he points out every detail- the floors, the smell, everything...it is so funny.
This is exactly how a BPO should go down....
OK ... OK ... I could not figure out how to copy the video from my YouTube page to here, so you'll have to go to my YouTube page to watch the BPO...sorry:-(
www.youtube.com/dwanbenttwyford
It's worth taking a look at - Gary is awesome!
Thanks,
Dwan
Friday, June 6, 2008
Deal Finding Favorites
Good Morning Folks,
Another beautiful day in Hawaii. Today is the last day of our boot camp. I am sad... This means we leave soon. Tomorrow we are going snorkeling. I can't wait.
Yesterday, the class loaded up on a bus and looked at foreclosures all day. It was such a blast! It never ceases to amaze me how many people still say that they can't find good deals. Folks, deals are falling out of the sky right now....
I want to cover a few of our favorite "deal finding" techniques...
There is an over abundance of deals out there right now. We think that many new investors, who watch too much late-night TV, are under the impression that if they decide to become an investor, the “investor fairy” will drop deals out of the sky. Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine to five rut and bound by the bosses’ rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.
We want to share a few of our favorite methods for finding deals. First and foremost, the oldest method in the book: knocking on doors! We’re here to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don’t know what to say. It’s simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property and you‘d like to help. NEVER mention the “F” word…. get your mind out of the gutter.. we mean foreclosure. Ask them if they took care of it. Typically they say, “Yes.” Ask what they did… filed an answer, sold it, brought the back payments current, what? You can tell by the blank look on their faces that they haven’t taken care of anything. Offer your assistance and move forward with your deal.
What about postcards? Do you religiously mail them? To whom? Most investors mail postcards to people in foreclosure. This is a great idea, but did you know that there is a wealth of other information that is public knowledge? Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge that the typical investor doesn’t tap into. NEVER be typical.
What about mailing lists? Have you ever considered buying a mailing list and “farming” neighborhoods? It works for Realtors, why won’t it work for you! We buy lists by the zip code and mail where we want to own property. Doesn’t it make sense to have several properties for sale in the same area opposed to all over the county?
How about phone calls? How often do you sit down and call foreclosures? Never? Why not? With a criss-cross directory you can find almost anyone. Investors, take the time to find people who have moved or changed their numbers. If they have moved, you have a deal because the mental attachment to the property is gone.
Do you run ads in newspapers? Why not? Many investors think ads are too expensive. How many deals do you have to do to pay for a year’s worth of ads? One? We’ll give you a little known tip: place your ads under “money to lend.” Many times the homeowners’ first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal.
You will make as much money as you are willing to work for. Our question for you is: how much are you willing to make? The sky is truly the limit. The bottom line is this, there are thousands of deals out there. If you don’t make the effort to find them, other investors will. We know because we’re one of them!
I have to get back to class....have a great day and go find some people who need your help.
Remember - always put the homeowners and their needs before your paycheck. You have lots of deals around the corner and they have one chance to start over...give them a fair shot at a new start!
Have Blessed Day,
Dwan
www.youtube.com/dwanbenttwyford
Another beautiful day in Hawaii. Today is the last day of our boot camp. I am sad... This means we leave soon. Tomorrow we are going snorkeling. I can't wait.
Yesterday, the class loaded up on a bus and looked at foreclosures all day. It was such a blast! It never ceases to amaze me how many people still say that they can't find good deals. Folks, deals are falling out of the sky right now....
I want to cover a few of our favorite "deal finding" techniques...
There is an over abundance of deals out there right now. We think that many new investors, who watch too much late-night TV, are under the impression that if they decide to become an investor, the “investor fairy” will drop deals out of the sky. Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine to five rut and bound by the bosses’ rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.
We want to share a few of our favorite methods for finding deals. First and foremost, the oldest method in the book: knocking on doors! We’re here to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don’t know what to say. It’s simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property and you‘d like to help. NEVER mention the “F” word…. get your mind out of the gutter.. we mean foreclosure. Ask them if they took care of it. Typically they say, “Yes.” Ask what they did… filed an answer, sold it, brought the back payments current, what? You can tell by the blank look on their faces that they haven’t taken care of anything. Offer your assistance and move forward with your deal.
What about postcards? Do you religiously mail them? To whom? Most investors mail postcards to people in foreclosure. This is a great idea, but did you know that there is a wealth of other information that is public knowledge? Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge that the typical investor doesn’t tap into. NEVER be typical.
What about mailing lists? Have you ever considered buying a mailing list and “farming” neighborhoods? It works for Realtors, why won’t it work for you! We buy lists by the zip code and mail where we want to own property. Doesn’t it make sense to have several properties for sale in the same area opposed to all over the county?
How about phone calls? How often do you sit down and call foreclosures? Never? Why not? With a criss-cross directory you can find almost anyone. Investors, take the time to find people who have moved or changed their numbers. If they have moved, you have a deal because the mental attachment to the property is gone.
Do you run ads in newspapers? Why not? Many investors think ads are too expensive. How many deals do you have to do to pay for a year’s worth of ads? One? We’ll give you a little known tip: place your ads under “money to lend.” Many times the homeowners’ first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal.
You will make as much money as you are willing to work for. Our question for you is: how much are you willing to make? The sky is truly the limit. The bottom line is this, there are thousands of deals out there. If you don’t make the effort to find them, other investors will. We know because we’re one of them!
I have to get back to class....have a great day and go find some people who need your help.
Remember - always put the homeowners and their needs before your paycheck. You have lots of deals around the corner and they have one chance to start over...give them a fair shot at a new start!
Have Blessed Day,
Dwan
www.youtube.com/dwanbenttwyford
Thursday, June 5, 2008
Kodakgallery.com Slideshow - Clinton, Iowa
Hi Friends,
We received a slide show from a friend in Clinton, Iowa. We wanted to share what a sweet town our training classes will be held in.
Bill and I are are so excited to have an official training center. Iowa is such a great state to invest in. Bill and I are 50'ish and we want to invest in areas where growth is steady. I want to be able to count on my rental income as I approach my 60's and 70's. We feel certain that we'll be able to by investing in the Midwest.
When you attend our training classes, we'll take you on buses to view properties that will be available for investment purposes.
It's very exciting.
We are still Hawaii, having a blast and teaching a great class.
Talk to you soon....
Dwan
Kodakgallery.com Slideshow
We received a slide show from a friend in Clinton, Iowa. We wanted to share what a sweet town our training classes will be held in.
Bill and I are are so excited to have an official training center. Iowa is such a great state to invest in. Bill and I are 50'ish and we want to invest in areas where growth is steady. I want to be able to count on my rental income as I approach my 60's and 70's. We feel certain that we'll be able to by investing in the Midwest.
When you attend our training classes, we'll take you on buses to view properties that will be available for investment purposes.
It's very exciting.
We are still Hawaii, having a blast and teaching a great class.
Talk to you soon....
Dwan
Kodakgallery.com Slideshow
Monday, June 2, 2008
How to Present Yourself to the Bank During the Short Sale
Hi Folks,
Wow! I never got over how great Hawaii is...warm, sunny, nice people, great food, did I mention - warm:-).
We are super excited to teach this class this week. We have almost 150 people coming! We are adding a day on the bus to tour houses on the island...maybe we can find something for ourselves:-).
When you first start doing short sales, you may not know how to present yourself to the bank. Here are some tips that should help...
The key to success is to pin the rep down as to when you can expect an answer. If you are dealing with a bank for the first time, you may want to call the loss mitigation department to confirm that the bank accepts short sales before you spend time preparing the entire package.
All of the larger banks do short sales:
Wow! I never got over how great Hawaii is...warm, sunny, nice people, great food, did I mention - warm:-).
We are super excited to teach this class this week. We have almost 150 people coming! We are adding a day on the bus to tour houses on the island...maybe we can find something for ourselves:-).
When you first start doing short sales, you may not know how to present yourself to the bank. Here are some tips that should help...
The key to success is to pin the rep down as to when you can expect an answer. If you are dealing with a bank for the first time, you may want to call the loss mitigation department to confirm that the bank accepts short sales before you spend time preparing the entire package.
All of the larger banks do short sales:
- Washington Mutual
- Bank of America
- Wells Fargo
- Countrywide Bank
- First Union
- Option One Mortgage Corporation
- Ocwen Financial Corporation
- First Franklin
- Litton Loan Servicing
There are many more. The problem with calling the bank first is that you may get a new person who has no idea what a short sale is and tells you no when, in fact, the bank does do short sales. We prefer to prepare the package, call loss mitigation, and ask who we need to fax the package to in order to get our deal accepted. We assume that all banks will say yes.
Most banks do say yes to some sort of a short sale. If you have a property worth $100,000 with a $100,000 mortgage balance, and the bank accepts $90,000, the bank considers that a short sale. It’s just not a short sale we would accept.
If the bank does not have a loss mitigation department, ask for the foreclosure department, workout department, loan modification department, late payment department, bankruptcy, or who ever helps homeowners in distress.
Give the seller’s name and loan number and ask for the representative who is handling the seller’s account. Once you have the right person on the line, ask for the fax number and fax the authorization to release form while you are on the phone with the rep.
Before you begin dealing with the loss mitigation reps, it is important you understand the mind-set of this person. Most of these folks are overworked and underpaid. Remember, some have as many as 700 files on their desk at any given time. Because these reps are so overwhelmed with their case loads, they often blow you off on the phone if you don’t appear to know what you are doing.
There are several ways to represent yourself to loss mitigation:
- As a friend. You could represent yourself as a friend trying to help. The problem with this approach is that the rep may think you have no experience and may not want to bother with you. On the positive side, the bank may like the fact that you are not a smooth-talking investor.
- As an investor. The rep may think that as an investor you are out to take advantage of the homeowners as well as make a killing from the bank’s loss. On the positive side, the rep will like the fact that you have experience and will be less trouble than someone with no experience. With bank reps having as many properties to unload as they currently have, presenting yourself as an investor is a really good thing. The reps know that you have experience, that they won’t have to train you, and that you will make their hectic job easy.
- As a real estate agent (if you have a license). The bank realizes that as an agent you are a neutral third party, but the bank may not have the confidence that you will follow through without a buyer, because agents show houses, not purchase them. On the positive side, the bank may take your offer more seriously because you are an agent and are considered a professional.
You have to decide which role best suits you. We have been able to use all three with great success. There is no right or wrong way to present yourself. The key is to let the rep know that you are easy to work with and will make the transaction as smooth as possible.
When speaking with the loss mitigation representative, always be professional and refer to the sellers by their first names as often as possible. Bring as much emotion into the conversation with the rep as possible in the hope that this will help the rep’s decision to accept a short sale become more meaningful rather than just financial.
Your initial conversation with the loss mitigation representative will go something like this:
You: Hello, Mary, my name is John and I am working with Bob and Sally Brown to help them with their situation. May I have your fax number so I can send you my authorization to release?
Bank: Sure, my fax is 555-456-7890.
You: Hold on, I’ll send it right now. (Fax it while you have the rep on the phone.)
Bank: Okay, I’ve received it. How can I help you?
You: As you know, Bob and Sally are in foreclosure. I told them I would do my best to help them if I could. Upon researching the property it looks as if they owe more than it’s worth. Bob thinks their mortgage balance is $100,000. Is that correct?
Bank: Yes, it is.
You: Great! When is the property set for the sheriff’s sale? My real estate agent says the property is worth only about $40,000 to $50,000 because it needs so much work. Based on the fact that Bob and Sally owe far more than their property is worth, I’m willing to purchase the property, but only if you can take a short sale. Where do we need to be pricewise to get this deal closed?
Bank: Fax a sales contract and a net sheet and we’ll see what we can do.
You: Great, Mary. I will have that faxed to you as soon as possible. I’d like you to know that I am prepared to close quickly and will not make you work hard on this deal only to bail out at the end. I can close as soon as you can get me a yes.
Bank: Fine.
You: I’d like to ask you a few questions if I may. Do you make the decisions or does your boss?
Bank: My boss does.
You: Great. How often do you meet with your boss?
Bank: I meet with my boss twice a month.
You: Great. When was the last time you met with your boss?
Bank: We met last week.
You: So … if I get you everything you need today, will you be able to present my offer to your boss next week?
Bank: Yes, if you get the information I need I’ll present your offer next week.
You: Okay, great. I’ll get you as much information as I can by the end of the day. Then I’ll call you to see if my offer is in a range that your bank can accept. What percentage does your bank usually discount?
Bank: It’s different with every deal. Get your offer to me and we’ll discuss it then.
You: One last thing: I just want to remind you that I can close quickly. I am sending you a cover letter, a sales contract, a hardship letter from the homeowners, a list of repairs, a net sheet, and pictures. Is there anything else your bank requires?
Bank: Wow, it sounds like you have a great package ready. That will be plenty of information to get started. Get your package to me and I’ll do my best.
You: Great, I’ll stay in touch.
See how often we use the homeowner’s names? We also reassured the rep that we could close quickly. We also told the rep what we were sending and asked if there were any other items the bank required. This shows your professionalism and experience.
Once your package is submitted, follow up until you get a yes.
OK - that's it for now. I have to get some sun before the sun sets...
Have a Wonderful Evening,
Dwan
www.youtube.com/dwanbenttwyford
Look at the bobble head video - it's so funny!
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