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Thursday, March 13, 2008
Gerald Romine's Politically Incorrect News
Gerald Romine's Politically Incorrect News
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Gerald Romine's Politically Incorrect News
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Gerald Romine's Politically Incorrect News
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Friday, February 15, 2008
Gerald Romine's Politically Incorrect News
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Wednesday, February 13, 2008
Gerald Romine's Politically Incorrect News
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Wednesday, February 6, 2008
Gerald Romine's Politically Incorrect News
Gerald Romine's Politically Incorrect News
Hey Friend,
Are you for real?
The question in the minds of most sellers when dealing with investors is “Can this guy really do what he says?” Most investors can’t!
What separates the wannabe’s from the players is access to muney! Pure and simple.
Access to money is critical because when opportunities come your way either 1) you have the ability to close quickly on a deal or 2) you don’t. Wholesaling and flipping are great… but when there is a homerun deal if you can close in two days wouldn’t you like to be able to make all the profits instead of flipping it for what amounts to a commission?
The most important part of having access to muney is the confidence it gives you when working with sellers. Knowing that when you put your name on the dotted line you can back it up. Knowing you are 'for real' as an investor. Sellers pick up on your confidence and this increases the numbers of offers you will have accepted even if you never use the muney you have access to.
Real World Example:
I placed a property under contract and my intent was to wholesale it to another investor. It was a good deal and I’d move many like it in the past. But the markets were changing and I was not able flip the property to another investor.
I had two options. 1) Walk away. 2) Close the deal. Understand that when I put a property under contract and tell a seller the property is going to close I’m going to close on the property (note: If the property is borderline I will tell the seller it will only close if one of the investors I work with buys the property). I chose option 2 and closed the deal. I closed because I have access to money.
Do you have access to money?
Don’t miss tonight’s webinar where Tom will show you how to get 200-300K in unsecured credit lines.
TITLE: Gerald Romine's Kick Ass Training Call For Real Estate Investors.
How To Get 200-300K in Credit Lines REGARDLESS Of Your Credit
DATE: Wednesday, February 6, 2008
TIME: 6:00 PM - 7:30 PM PST, 8:00-9:30 PM Central, 9:00-10:30 PM EST
Reserve your Webinar Seat Now at:
https://www1.gotomeeting.com/register/589136844
Thursday, January 31, 2008
Gerald Romine's Politically Incorrect News
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Wednesday, January 30, 2008
Gerald Romine's Politically Incorrect News
Gerald Romine's Politically Incorrect News
Hey Friend,
Man oh man... have I got some wild information to share with you on my upcoming webinar where I will launch our new web site that will completely eliminate the need to attend short sale and foreclosure boot camps and seminars. Everything an investor or homeowner needs to know about short sales and foreclosures will be available for FREE.
You will be receiving your webinar invitation soon!
For now please enjoy and article from the site.
Necessary Short Sale Items From The Seller
When I first started doing short sales years ago I would meet with sellers to go over all of the details and gather all the information I needed. It literally took me hours to travel to the property and meet with the sellers. This is a valid approach and I encourage you to do the same, at least a few times.
As my investing and marketing skills improved I changed to a system where I conduct almost all business over the phone and use email, fax, and mail to gather everything needed for a short sale. This is the most efficient system I have found.
Irregardless of how you gather the information you should get the following items signed by the seller.
- Standard Purchase and Sale Agreement. You must have an agreement in place which gives you a legal interest in the property.
- Special Power of Attorney. This applies only to the property and gives you the authority to act as if you were the seller.
Lenders will typically ask you to complete an Authorization To Release Information(ATRI) which allows them to speak with you about the loan. I DO NOT encourage you to use ATRI's because a Power of Attorney forces the lender to deal with you as if you were the seller. The lender can not ignore you if you have a Power Of Attorney and must negotiate with you in good faith for a resolution, modification or short sale.
This is an advanced technique and I hope you see the importance of differentiation between the two.
- Agreement and Statement Of Understanding. You must have the seller sign an additional agreement that clearly states many things including that you will do your best to stop the foreclosure but are in no way making any promises or guarantees.This agreement should cover risks to the seller, your option to re-instate the loan to buy the property subject to, the possibility the property will be foreclosed upon, and hold harmless language protecting you. The exact Agreement I use can be found in this system.
- Warranty Deed (or Equivalent depending on state). This document conveys ownership of the property and plays heavily into the negotiations with the lenders.
This document IS NOT required to complete a short sale. However, by getting the deed to the property you now control ownership of the property which accomplishes several things. a) The lender realizes they will either work with you to get a short sale or the property will go to foreclosure. Having the deed is a power play. b) prevents the seller from ripping a deal out from underneath you after you have spent a lot of time and effort negotiating the short sale. c) gives you additional exit strategies including subject to.
While I may hold the deed to the property and mention it in the written negotiations with the lender I DO NOT record the deed unless there is a compelling reason to do so. Just remember you have the deed for negotiation and security. Rarely do you record that deed.
- Financial Statement. Every lender requires a Financial Statement to be submitted with a short sale package to show the
borrower(you) is financially unable to pay on the loan. This is an important document and helps show the lender why they
should accept or short sale package.
The seller should provide you the following:
- W-2's Pay Stub (Last Months)
- Most Recent Loan Statements
- Copy of Foreclosure Notice
- Access/key to the house
- Pictures of the house (email or mail)
- Hardship Letter
With this information you will be able to prepare and submit a short sale package to the lender. With our system you will be able to prepare short sale packages in less than 5 minutes.
Now Go Buy A House!
www.kickassrealestate.com
NOTE: This is a post-only mailing. Replies to this message are not monitored or answered.
Wednesday, January 23, 2008
Gerald Romine's Politically Incorrect News
Hey Friend,
Man... people are chomping at the bit for me to announce the webinar and short sale website that will put an end to guru short sale and foreclosure boot camps. And... I think I'll be able to have the webinar next week... stay tuned because it is going to rock your world.
In the meantime please enjoy and article from the site we are about to release.
Now Go Buy A House!
Short Sale Offer & Explanation
This is part of an abundance of evidence to support your short sale offer. If you do not have our system be sure to Include the following:
- BPO or Appraisal explanation. I use the following:
The BPO or Appraisal: The Market has been falling fast and many lenders are doing BPO's on a monthly basis. To be accurate the BPO or appraisal must be less than 30 days old and take into consideration comparable sales LESS THAN 90 days old, listed properties and days the market. This BPO needs to give you a price that will facilitate a sale within 90 days or less and you must be the best/lowest price property on the market. Additionally you should ask for a quick-sale value which will be a significantly lower amount.
- Lender may be a loan servicer. Include in your letter that the lender may be servicing the loan and the real lender may not be aware of the actual market and it's conditions. Request the loan servicing company share a copy of this letter with the lender of record.
This is done because a loan servicer has a fiduciary obligation to protect the lender and negotiate in the lender's best interest. You are giving them new information that the lender should have. They have a fiduciary obligation to pass on this information. In practice this will rarely happen. However, you can later use this as a leverage point with the loss mitigation supervisor.
- Property/Owner Status. Restate you have the Power of Attorney and want to work towards a solution to avoid the foreclosure and help save what is left of the borrowers credit.
- True Property Value. List a financial breakdown from the Expected Appraisal or BPO amount to the True Property Value. With creativity you can justify low prices.
- This Short Sale Offer Is Fair. Tell them why your offer is good and better then taking the property to REO and realizing less.
- Your offer is an option they can take now to limit their losses. With a declining market the property could be worth less if they have to foreclose.
Done right this letter should take up less than a page and a half. The value of the page is exponentially more than the quantity.
Tuesday, January 15, 2008
Gerald Romine's Politically Incorrect News
Hey Friend,
If you haven’t survived/thrived a market crash you are not an investor! Harsh maybe... but success is something that can be sustained.
My investing started in the 1980’s and I’m not some Johnny come lately to real estate investing. I’ve lived and prospered through every type of real estate market. I'm excited about today's market but everything is not as easy as some make it out to be.
But let me be perfectly clear…
You must be willing to make changes in how you do your real estate business to keep up and change with the times. If you fail to make changes you will perish.
Coming soon I will conduct a FREE webinar for UREI System Users and I have decided to allow all of my subscribers to access the webinar. This will be pure education, training, and how to information.
Some of what I will be covering:
- What is happening in the market right now.
- What the banks don’t want the public to know.
- What’s going on with Short Sales and Why.
- What you must be doing right now or you will perish.
One of the things I will reveal is the secret formula GMAC and other lenders use when discounting loans. Have you had tried shorting loans on properties that were upside down and the lender is still insisting on a payoff that seems insane? How about seconds that should take $1000 and kiss your arse but they come back with some crazy number on a worthless second?
I’ll explain what the lender is doing and why. I recently had an in depth tell all discussion with a Recovery Manager where he told me the inside formulas and more than you can even imagine. I'll even tell you why he told me which is an amazing story and lesson in how I do business!
Questions and Answers
UREI System Users: I am going to give a select number of UREI System users the opportunity to join me on the call live if they want to share for everyone's benefit what’s working in their real estate business. Those selected will be on the call live with me.
I encourage UREI users to share because those who share will benefit the most. It will give you the opportunity to have myself and other successful investors comment on what you are doing and how you might be able to make it better. Still, some people want to keep everything top secret so it is up to the UREI users to step up to the plate.
Non UREI System Users: May submit any questions they would like me to answer. I will select the best questions and answer them live on the call.
Note: Only submissions within the next 24 hours will be considered.
The webinar date will be announced in the near future and may be on short notice.
If you know me you know this is a call you will not want to miss!
Now Go Buy A House!
PS – I'm hoping to have the call next week!
Gerald Romine's Politically Incorrect News
Ways To Prevent Foreclosure
A short sale is one of many ways a homeowner can prevent a foreclosure. Whether you are an investor or homeowner faced with a foreclosure we believe you should know and understand all of your options. A short sale is often the best option available to the homeowner but knowing all options is in the best interest of all parties so an informed decision can be made.
For the purpose of instruction we will assume you are a homeowner facing foreclosure.
Foreclosure Rules
Rule #1: Contact your lender right away to discuss your options.
Rule #2: Never ignore the lender's letters or phone calls.
Rule #3: Ask the lender for a reinstatement or repayment plan.
Rule #4: Know your options
1) Reinstatement
Reinstatement might be possible when you are behind in your payments but can promise a lump sum to bring payments current by a specific date. Call the lender and ask to speak with the workout department. The lender would prefer to have the loan reinstated and have you stay in the home then to foreclose on the property.
2) Repayment Plan
If your account is past due, but you can now make payments, the lender may agree to let you catch up by adding a portion of the past due amount to a certain number of monthly payments until your account is current.
Example. You fall 5 payment behind on your house
3) Private Money Loan
A Private Money Loan at a high interest rate is often the best solution for the homeowner because it allows them to bring the other loans current. Although the interest rate is higher it is usually cheaper to pay a higher interest rate on a small loan and keep the existing financing in place compared to refinancing a large new loan at a higher interest rate(because of bad credit and a pending foreclosure). Most private money lenders require a total loan to value ratio below 75% and are equity based lenders meaning more importance is placed on the house securing the debt than a personal credit rating. Make sure you are dealing with a private money lender and not a mortgage broker, bank, or hard money lender(all of these may charge exorbitant points and fees costing you more money). With a private money lender you keep the ownership of your house, borrow only what you need, and can repair your credit over time. Unfortunately private money lenders are difficult to find.
4) Sell Your House To An Investor
If 1, 2, & 3 are not an option then you can sell your house to an investor. On average a seller nets 85% of the sales price after taking into consideration all selling, closing, & misc. expenses. An investor will expect to make a reasonable profit but can close quickly with cash or may take over existing debt & bring the loan current. A credible investor closes quickly which starts rebuilding your credit immediately and may put cash in your pocket depending on your equity. If you have little/no equity see #6.
5) Sell Your House and Lease Option Back
This is a very popular option and must be done by a willing investor. Typically the investor takes over the existing debt or gets new financing then gives the seller the option to buy the property back at a later date for a higher amount. The seller gets to stay in the house and make reasonable lease payments while rebuilding their credit. Done right this can be a solution but the disadvantage is you lose ownership of the house and tax write offs. Another option that may be less expensive is getting a Private Money Loan. If you have little or no equity an investor may be able to do a short sale(see #6) then lease option the house back to you.
NOTE: We are not a big fan of lease optioning the home back to the owner because unless it is done correctly there is too much that can go wrong at a later date. We mention it here to cover all the options.
6) Short Sale
A short sale is when an investor purchases a property conditioned upon the lender discounting the loan(s) to a lower amount. This may be the only solution for sellers that have little or no equity or are over financed owing more than the value of the property. Make sure you work with a credible investor experienced in short sales. Do not do business with anyone that guarantees or promises results- they simply can’t because there is no way of knowing what discount a lender will accept. Many times acceptance will not occur until just before the foreclosure date. Note: If you have little or no equity it is important to start working with a credible investor ASAP because the short sale process takes time.
7) List The Property With A Realtor
This is the option of last resort. FACT: there are thousands of houses listed on the MLS that Realtors can’t sell. Average days on the market continues to climb! The foreclosure process limits the time you have to sell. You simply don’t have the time. Realtors do not understand options 3, 4, 5, and 6. Realtors increase your costs with exorbitant commissions and most seasoned investors avoid working with Realtors on short sales.
