Developing Your Short Sale Operation Through Luxury Homes
Today’s distinctive guest is the famed Mr. Thirty under Thirty, Nick Cameron. He is the team leader in the Modesto Market. Over the last three years, the Modesto market was an REO motivated market until the government stepped in. Nick is now looking to double his business. Fundamentally, he will maintain the same volume with his REO business while he expands to the short sale market also. They are on pace to accomplish about $7.5 million in business in May and that is because they are going after the big dollar homes. The luxury houses, in a lot of people’s opinions, are easier to short sale since they are big ticket short sales. In Nick’s circumstances, he has discovered that lenders are writing approval letters in thirty days on the luxury houses. Nick’s entire marketing campaign has been focused on luxury houses above $800,000.
If you look at luxury houses from the bank perspective, it just makes sense. If the bank agrees to a short sale on a $1.3 million dollar mortgage for $800,000, they are losing $500,000, but they net $800,000 that they can reloan out and the are also netting more than 50% of their recorded loan value. On the contrary, if you look at a $400,000 house loan that the lender has to take a $130,000 short sale on they are greatly below 50% of their recorded volume. Which one would you accept if you were the bank?
Today is mindset Monday. If you haven’t shifted to short sales thus far, you have to think in this way. Nick says it best. Do not be lethargic. Go to work and pretend that if you aren’t going to hire yourself, why is anyone else going to hire you?
We have one more item of note on mindset Monday. If you are looking for that little extra increase in producing leads and advertising your company, check out our events page for the free of charge webinar on advertising your company. It is being presented by the webmaster ninja that has helped shortsalepowerhour.com grow to be a web hit over the last four months.
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