Real Estate Short Sale Investing

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 exert 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. Housing Markets!

 
I always start off every interview asking the speaker to speak briefly about there 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. USDA Florida!

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.

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?”
So banks are constantly calling these homeowners to use equity in their home because there are some potential tax savings in structuring your finances that way. That’s one of the things.  Housing Markets!

Secondly, inflation is outpacing wage growth. That means what it takes for you to buy milk and eggs today is going to increase faster than how much your earnings are going to increase on average. For instance, if you have someone who’s making $100,000 a year, let’s say inflation is 3% and your raise every year is 1.5%. So inflation is growing at twice the rate your salary is. That’s another component. That means folks are earning less and less, relative to the goods they’re going to have to buy.
The next thing is that a lot of folks may recall this brief refinance boom we’ve been going through, which is pretty important. People went out and got a lot of mortgages called “Adjustable Rate Mortgages,” which have an extraordinarily low interest rate to start, let’s say 3% in some cases. But in a couple of years, maybe two to five, depending on the term of the Adjustable Rate Mortgage, their rate is going to go up, it’s going to adjust upward.

So people went out and bought more house than they could normally afford, or they refinanced, got the low payments, and bought a car that they couldn’t afford if their payment had to adjust upward. What’s going to happen here in the next two to five years is that all of these ARMs are going to be adjusting upward, and that’s pretty critical because people aren’t going to be able to afford them.

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. 

Strategic Planning Alignment Program – Questions

A research study was actually conducted of five hundred providers to better understand what creates effective organisations to struggle economically for extensive amount of times. The analysts figured out that 87% of these providers went through several “delay factors” a term for the start of an extended monetary decline. When the analysts pored by means of the information to find the reason for the delay factors, they discovered that 70% were actually attributable to unsatisfactory choice about Strategy. While it comes at fault the economic situation for one’s miseries, the information plainly reveals that most monetary decline was actually properly within management’s management. According to a Harvard Company Testimonial survey, on the standard, providers supply simply 63% of the monetary performance their approaches assured.

A bunch of all of them credited this failure to correct preparing and also completion. Despite the fact that strategy resorts or even strategy preparing treatments are actually a helpful leadership management device, they are actually commonly abused. The cause for this is actually not unlikely; a lot of managers have actually been actually part of a lot of doubtful gatherings in the title of strategy treatments or even resorts that neglected strategy or even performed not have actually the preferred level of influence that an approach session must possess. Do not get it inappropriate: If flourished, resorts could be a highly effective way to create impressive concepts and also development. However, when performed inadequately, resorts are actually a wild-goose chase and also information for the organisation and also may possess damaging repercussions such as leading the organisation in the inappropriate path.Strategic Planning Consultants: Goal-Based Strategic Alignment Retreats That Result in a Growth Strategy Your Team Can Get Excited About

However that is actually much from the honest truth. Strategy has to do with determining a set of options for succeeding; in company, in field and even in battles, competitions and also in life (growth strategy consulting). Examine it by doing this, strategy is actually “I have actually assumed long and also hard about this, I have actually considered various possibilities, based upon my potentials and also the environment I presume this is actually the most effective way for me to win.” Some of the approaches our team release in important preparing refuge ventures for clients is actually the “Participating in to Succeed” strategy established through Lafley and also Martin which identifies strategy as a question-based strategy that seeks to respond to the observing interrelated concerns:1.

Strategic Planning Alignment Program – Questions

Everything about Strategic Planning Alignment Program

Where will you play? 3. growth strategy consulting. Just how will you win? 4. What functionalities must remain in place? 5. What management units are actually required?So where performs your strategy refuge happened in to all these? That’s where you start to proffer answers to the concerns positioned above. The purpose of your strategy refuge is actually to help managers by means of a deliberate procedure of responding to concerns such as the above and also develop a purpose-driven strategy to guarantee the solutions/answers are actually carried out. Satisfy details that creating a convincing strategy will not be actually based completely on the talks at the refuge. Strategic Planning Retreat There are actually a considerable amount of needs to become put in location in the past and also after the refuge for a total and also effective strategy growth procedure.

Having good enough information are going to guarantee that talks at the refuge are actually informed and also sturdy. Your SWOT and also PESTLE study are actually instances of critical calculated study resources that are going to aid you get the pertinent information required.: You do not wish attendees to only walk in to the refuge ground as if it is actually some business-as-usual 10 am Monday appointment. Ensure you create consensus throughout your organisation and also involve those that are going to go to the refuge. This could be performed by means of questionnaires, meetings and also pre-read products just before the retreat.: Another critical aspect to guarantee the excellence of your strategy refuge is actually to purposely create and also organize the refuge throughout.

Everything about Strategic Planning Alignment Program

Choose a hideaway concept; make certain it is actually one that records the spirit of your planned dialogues at your refuge. Select case history and also example subjects that are going to be actually discussed at the refuge. These must be actually flowed just before the refuge – growth strategy consulting. Choose just how the refuge will be actually coordinated, what treatments are going to be actually holding and also the objectives or even takeaways from each session. There must be actually no loosened ends.: Here’s a single thing to remember throughout the refuge see to it all the results and also understandings generated from your dialogues are actually caught and also translated in to action strategies. There is actually just no reason for intelligent company heads and also senior managers to become gathered in a conference and also not articulate important upcoming actions.Strategic Planning Consultants

Strategic Planning Alignment Program – Questions

Have a look at these 10 easy measures to discover just how you may aid your organisation obtain value from those lengthy tiresome strategy treatments. 1. Beginning along with completion in mind Define what excellence will look like2. Assign a competent and also seasoned strategy facilitator Outside or even Internal3. Prepare a hideaway agenda4. Perform extensive study (inner and also external) 5. Build consensus throughout the procedure and also involve in extensive important thinking6. Plan implementation/execution as component of your strategy7. Delegate roles and also responsibilities8. Concur information needed to perform strategy9. Cultivate an interaction strategy to waterfall the result of the refuge to the remainder of the organisation10.

What makes a good business website?

What makes an online business site successful? Both web designers and internet marketers share the same goal: to create a successful website. Web designers and marketers are often frustrated by the lack of clarity in how to create an effective online business website. Internet marketers are required to think differently than traditional web developers.

Many internet marketers think that website design and search engine optimization (SEO) are one and the same. It is false. They are 2 separate processes with very different results for the same end-user. Traditionalists believe strongly in hard coding. They prefer a complicated site that is overly designed and has lots of keywords. This approach makes it very difficult to find the information readers and visitors need. Whereas a well-designed and optimized website has clean and clear layout, well-positioned keywords, relevant internal and external links and a visually pleasant user experience.

Why is it important for a website to be easy to navigate? 

Websites should include a simple navigation system. Search engines rank websites based on their ease of navigation. A website’s homepage is often ranked highly due to this factor. . Websites have a logical layout with easily accessible content. It may not be the most well-known feature, but it is the most important.

Every web designer should know that sitemaps are another essential web design feature. Sitemaps are simply a diagram of your entire website’s pages with their page names identified in columns. It is the page title that uniquely identifies a webpage. Google and other web search engines use this information to identify what page is about. 

Page Speed is important for websites. 

All web developers need to be aware of the importance and impact of page speed. Search engine optimization is greatly affected by websites with slow page speeds. Page speed affects users’ overall experience and it is vital that you choose a web hosting company that can offer you excellent services when it comes to page speed. Web design firms must always strive to improve page speeds at all cost.

Image optimization is an important aspect of web page content. Image optimization is all about creating high-quality images which will look amazing when you view them in a search engines. Image optimization simply means making your website look attractive and inviting to visitors. Image optimization uses keywords to ensure that images appear in search engine results when someone searches for images with the same keywords. This allows users to click on your images more often, and increases their chances of being clicked. However, keywords that aren’t relevant to your image will result in fewer clicks. 

What’s the final step in creating an effective website? 

Product descriptions are another important content aspect web designers need to be aware of. Online users are highly interested in the product description because they need it. You should write a product description that explains what your product does and why it is important to you. . Online buyers will spend a lot time looking through product descriptions. It is important that you take the time to write descriptions that highlight the key features of your products. Make sure you write product descriptions that are not too general and cover all the aspects that a potential buyer would want to know.

Online businesses need to have meta descriptions (or meta tags). A meta description, or HTML code, is an HTML- or XHTML-code that is placed at the start of a website and that describes the content. Meta descriptions provide search engine bots with relevant information about a web page. Meta descriptions may include key phrases and keywords, as well meta tags and site-wide information. Not only are they crucial for getting your site to appear in search results but also for increasing your page’s click through rate.