Sunday, March 29, 2009

Negotiating Tips: Real Estate Short Sales Part 3

Hello All:

Here we are at blog entry # 3 on how I negotiated a short sale for way under fair market value.

After the Realtor presented my concerns and offer to the bank, the bank counted with a higher sales price dismissing my fix up costs. So what did I do? I had contractors sign affidavits substantiating my fix up costs and assessment of the property, I then submitted this and the original offer back to the bank.

Less then 24 hours later the bank agreed to my terms. Why? I was able to document and substantiate what I represented in negotiations.

Remember, when you have the facts on your side, you argue the facts, when you have the law on your side,you argue the law, when you have neither, you pound the table.

Until next time.

James A. Gage

Tuesday, March 24, 2009

Negotiating Tips: Real Estate Short Sale - Part 2

Hello All:

Welcome to part 2 of how I negotiate a pre-foreclosure way under fair market value. As you read in the last post I assembled some pointed info that assisted me during the negotiations.
This is what I did with it...

First, I knew their chances of taking a substantial below market offer was high, due to the days on market, which was 180 days. Secondly, it had been vacant for a long time meaning the longer it stays that way the greater chance of vandalism and the greater chance that the bank will have their insurance policy canceled ( Most insurance companies will not insure vacant properties).

So during the first round of offers we strongly stress these waiting hazards with the listing realtor, so they may also stress to the bank are concerns for their property when they presented my offer. My goal here was to cause the bank to feel the pain of what if(s)!

During my next post I will explain how things ended up.

Until next time be well.

James A. Gage

Monday, March 16, 2009

Negotiating Tips: RealEstate Short Sale - Part 1

Hello All:

As I said in my last post, I would be blogging about how I obtained a home way under fair market value through the use of negotiating stratergies and tactics.

The first thing I did is something I learned a long time ago : Know your compettition, know your subject matter; another words I needed to know the property.
I found out how long the property was on with the realtor, was it vacant, where was the owner, who were the bank or banks involved, what did the market hold. when I received the information it played out like this:

On the Market : 180 days
It was vacant for months, owner moved out of US and was being represented by an attorney.
The note was bought from a bank that went out of business.
The market showed that homes of similar square fotage and layout sold for a pricing point between $120k - $149K.

On my next post I will show you how I took this info and formulated mu offer to the bank.

Be well,

James A. Gage

Thursday, March 5, 2009

Negotiating Tips: Real Estate

Hello All:

It's been awhile since my last blog entry, so I wanted to let you know what I was up to! I have been in the process of negotiating a pre-foreclosure deal (aka Short Sale) with a bank, which will remain nameless. This is one of the things I do with the income I receive from my Negotiating For A Living business! That being said, many have e-mailed me saying they do not beleive that you can buy property 50 cents on the dollar, even in this economy.

Nothing could be further from the truth, it's all about negotiating and your skills and ability to get your position across. You see this particular home was on the market with a $250,000.00 mortgage, I offered $75k, and guess what? They took it! I beleive that equals 30 cents on the dollar! This house needs only inside paint and then will be ready to do a lease option or straight sale, which ever one materalizes it will equal $$$$$$$$$$ for me to the tune of 40-50k - not bad. That equals about a 58%-70% return give or take on my money.

In up coming posts I will breakdown some of the tactics and negotiating stratergies I used in this deal.

Be well...