Short-Sale Pre-Foreclosure Investing

Dwan Bent-Twyford, "The Queen of Short Sales," is the country's leading authority on buying pre-foreclosure properties directly from lenders. She also leads popular boot camps for real estate investors.Sharon Restrepo is known as "Short Sale Sharon" and specializes in buying foreclosure and distressed properties. She is the coauthor of numerous real estate home study courses, offers training workshops, and is cofounder of several real estate companies.

• Downloadable Forms ixAcknowledgments xiIntroduction xiiiChapter 1 Get Motivated, Set Goals, Get Started 1A Short-Sale Case Study—with a $200,000 Profit 2Getting Motivated 6Setting Goals 7Accomplishing Your Goals 9This Is a Business, Not a Hobby 10Dealing with Naysayers 10Personal Appearance 12Setting Up Your Office 13Structuring Your Business 14Ready to Do Business 16Chapter 2 What Is a Short-Sale? An Executive Summary of How to Negotiate with the Bank and the Homeowner 19Why Do I Need to Do a Short-Sale? 20Why Do Banks Accept Short-Sales? 21How Much Do You Offer the Bank? 23Successful Short-Sales Start with the Homeowner 33Financial Agreement with the Homeowners 33How Much Should You Pay the Homeowner to Move? 35Setting the Move-Out Date 36Chapter 3 Expert Strategies for Finding Distressed Properties and Foreclosures 39Buying Bank-Owned Properties for Pennies on the Dollar 39Newspaper Ads 43“I Buy Houses for Cash" Street Signs 44Networking 44Postcards 45Magnetic Vehicle Signs 45Bail Bondsmen 46Pawnshops 46More Deal-Finding Favorites 49Chapter 4 How to Approach the Homeowners and Create a Win-Win Solution 51Understanding Why Homeowners Want to Work with You 52Building Courage to Knock on Doors 53Friendly Negotiations with the Homeowners—What to Say and What You Need from Them 54Establishing Rapport over the Phone 57Knock on Doors Like a Pro 57Helping Homeowners Understand Their Options 59Deed in Lieu of Foreclosure 64Chapter 13 Bankruptcy 65Final Thoughts 65Chapter 5 Preparing Your First Offer 69Authorization to Release Information 75Going to Contract 79Hardship Letter 88Pictures 98Investor Cover Letter 99Comps That Justify Your Offer 101Net Sheet 105Estimated List and Cost of Repairs 107Chapter 6 How to Approach the Bank 113How to Get the Bank Interested in Talking to You 114What the Bank Wants from an Investor 114How to Get Through to a Stonewalling Lender 115Presenting Your Short-Sale Offer to the Bank 115The Asset Manager’s Role 119Working with the Portfolio Representative Directly 121Getting Your Short-Sale Assigned to a Loss Mitigation Rep 121Additional Information the Bank May Require 122My Offer Is Submitted—Now What? 127Chapter 7 Negotiating with a Second or Third Mortgage Holder 131Your Conversation with the Second Lender 136Variations on a Theme 139Chapter 8 Key Elements of the Legal Process You Must Understand 145Understanding Ownership versus Debt 146Foreclosure Process 149Types of Liens 152Types of Mortgages and Loans 155Chapter 9 When the Bank Says Yes 159How Do I Buy More Time? 162How Does the Homeowner Buy More Time? 163Chapter 10 Three Profit-Making Exit Strategies: Wholesaling, Rehabbing, and Renting 169The Wholesale Path 170The Rehab Path 173Selling the Home 180The Rental Path 180Chapter 11 Setting the Closing Date and Making Sure the Closing Goes Smoothly 183A Successful Closing 185What If My Homeowners Change Their Minds? 186What If My Buyers Change Their Minds? 189Closing with the Assignment of Contract 191Double or Simultaneous Closings 196Are Double Closings Illegal? 198Chapter 12 First-Year Expectations 201How You Can Become Rich without Going to College 204What We Did to Get Here 205What You Can Expect in Your First Year 207Thinking Like a Millionaire 208Index 209