I Advice - Real Estate

Using Emotion for Persuasion
The other day, I received the last issue of a business magazine before my subscription runs out. Now, I like this magazine, but I'm swamped with reading matter so I won't renew.Of course, I've received many reminders and offers about renewing; magazines try very hard to keep the subscribers they've got. So when the last issue came with a special promotional wrapper on the cover, I wasn't surprised.But, what made this one interesting was a clever piece of copy that hit an emotional chord: inside the back cover of the special wrapper were the words, "You're about to be dropped from our list of active subscribers. Unless you act now."Personally, I thought it was an effective piece of cop

may only be hundreds of dollars that you are negotiating.

If you are game for a strategic a methodical approach to negotiating your offers you can always use my 3 step approach to getting your offer accepted.

Step 1: The first offer will be used to get the number that you and the lender are negotiating down to tens of thousands.

Step 2: The first counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within thousands.

Step 3: The second counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within hundreds. Usually at this point, the lender is the most flexible and the loss is obviously not as great.

Another thing to consider when determining your counteroffer is if in fact it even makes sense to offer one. Sometimes the lender is non-negotiable and will only accept what they will accept. Period! If this is the case does it make sense to continue trying to persuade

Project Management: An Overview
A Project can best be described as any corporate initiative that displays one or more of the following characteristics:• It will have a clearly defined business objective, more usually related to introducing change within the business or corporation, and will be a “one off” activity with a definitive Start and Finish;• It is likely to involve numerous inter-related tasks and, as an activity, it would benefit from formalised procedures, processes and controls to ensure successful delivery and implementation;• It may well involve cross-functional working and the use of shared resources including but not limited to departments or divisions such as Information Technology (IT),

Although some of your initial offers will be accepted, you must also be prepared if the lender rejects your offer. Just because your first offer is denied does not mean that the deal is dead. This is now the perfect opportunity to learn precisely what you have to do in order to close the short sale.

The first thing you will want to do before making another offer is find out from the lender exactly why the first offer was rejected. Here are several key factors that may result in your offer being rejected.

They will not net the required amount needed to justify accepting your short sale offer. Simply speaking, your offer was too low!

The lender is adamant that they can do better waiting for a better offer or foreclosing on the property.

They do not agree with the terms of your contract or net sheet.

The loan is government insured and therefore they are protected against a foreclosure.

The investors of the loan are asking for more money to close out the loan.

You tick the loss mitigations rep off so bad that the last thing they want to do is help you.

The hardship was not proven enough to persuade the lender to accept a short sale.

The lender would like to explore alternative payment options with the homeowner instead of doing a short sale.

Your offer was much lower than what the BPO assessed the house for. This is another example of your offer being too low.

These are just some of the reasons you may get from the lender for your short sale being rejected but the main thing to remember is that you must at least probe and find the exact reason why.

I can confidently say that the main reason your short sale offer will be rejected will be because the offer is too low. Remember, the lender’s number one priority when doing a short sale is how much money they will net.

The best way to find out how much the lender needs to net is to just ask! Once you identify the right loss mitigations rep you can simply ask:

"How much do you need to net if we agreed to a reasonable short sale offer?”

Will the lender tell you how much? That is to be determined after you ask the question. The point is that you will never find out unless you throw it out there.

Even if you don’t find out initially, the next best time to ask is prior to the counteroffer.

You want to start and maintain a constructive dialogue with the loss mitigations rep where you are constantly probing for information that will determine what your best offer will be.

When I do short sales, I mainly develop my initial offer based on how much equity or profit I want to make with each deal. However, from time to time when I’m preparing a counteroffer I use a formula to help me come up with the most accurate guess on what I think the lender is willing to accept. If used correctly, this formula alone will more than pay for the price of this course 1000 fold.

Here it is…

Step 1: I take the estimated or actual BPO amount or the value of the house, based on the comps then multiply that number by 85%.

Example:

$175,000 (Estimated BPO value) X 85% = $148.750

Step 2: I then take the number I got and multiply it by 92%

Example:

$148,750 X 92% = $136,850

If this were an actual deal, I would use this final number or something close to give me my counteroffer amount. Although I have reason to believe that the lenders use a similar formula when they determine the amount they are willing to accept on a short sale, I cannot say that this is exactly it.

I do know that this formula does two things.

It gives me a calculated number to use for my initial offer or counteroffer.

It allows me to breakdown to the lender how I came up with my offer.

Be resilient yet realistic when making your counteroffers. Understand that it may not stop with the first counteroffer. You may have to counteroffer a 3rd or 4th time just to get the amount down to where the lender feels comfortable to accept. At times it may only be hundreds of dollars that you are negotiating.

If you are game for a strategic a methodical approach to negotiating your offers you can always use my 3 step approach to getting your offer accepted.

Step 1: The first offer will be used to get the number that you and the lender are negotiating down to tens of thousands.

Step 2: The first counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within thousands.

Top Ten Hints For House-Hunting Success In Australia
Whether you’re a first home buyer, a property investor or you just want a change of scenery, house hunting can be an exhausting and confusing experience … but it does not have to be. With a little careful planning and forethought, it can actually be a pleasure!1. Be realistic: Before you start house hunting, determine your budget by figuring out what you can afford in monthly mortgage repayments. Allow for ongoing maintenance costs, rates, family expenses (such as schooling), holidays, insurances and other living expenses.2. Get pre-approval: If possible, have your bank or mortgage broker obtain a pre-approval for a home loan. This will determine how much you can afford to spend and enable y

tick the loss mitigations rep off so bad that the last thing they want to do is help you.