The Biggest Mistake New Investors Make Is Offering Too Much

If your offer does not embarrass you, it is too high! You can always go up … rarely down. Do not be afraid to make low offers. The worst that can happen to you is that the bank will say no, and then you will make a higher offer. A rejection is not the end of the world, so offer low. We can’t stress enough how vital this is to your success. We want to make a point here.

How Much Do You Offer the Bank?

It is important to realize that when submitting a short-sale package, you are building a case. The better the case, the deeper your discount. Think of yourself as an attorney preparing for a court hearing. If the attorney shows up unprepared, the case will be lost.

How many of you remember the O. J. Simpson trial? If you think he was guilty, why do you think he walked away from a double murder charge? His attorneys built a great case, and it was presented more effectively than the prosecution’s case was. Short-sales are the same concept: the better the case, the better the deal.

In a nutshell, a short-sale is negotiating with a mortgage holder to accept less than what is owed as payment in full.

A short-sale is the favorite investing strategy when we find a distressed homeowner who owes the bank close to or more than what the property is worth.

Here’s how it works: The homeowners owe $200,000 to their first mortgage holder and the payments are in arrears. Their property is worth $200,000 in retail condition. With the proper negotiating strategies, you get the bank to accept $100,000 as payment in full. Therefore, you are purchasing a $200,000 retail property for 50 percent of its value.

Future infusion of cash into such a big hole like Fannie and Freddie will surely make government print unimaginably large sum of money into circulation. On the surface, it’s a move to try to pull the economy out of a big pit and government is branding it as a move to help the working class and avoid depression. Under the hood, it’s a move to fan inflation into the economy for the next 2 decades, leading to high loss of value for paper money (on the flip side, bolstering a high asset price such as housing, land and material). The society will experience a further gap widening between the asset holders (rich classes) and non-asset holders (poor working class). By the end of 2030, nobody would understand what a middleclass is because this class won’t exist at that time. The move officially unveiled a long period of high inflation, reminising the 70s and 80s.

What Is a Short-Sale?

Everywhere you turn, there is another seminar, another guru, or another boot camp, all teaching different ways to do short-sales. Can so many people be right? How many different ways can there be to do the same tiling? There are not 100 different ways to do short-sales; there is one way, and everyone is trying to put a spin on it to seem original.