I have been working real estate since 1998 and I have made millions and lost millions due to illness. However, it did not stop me from rebuilding again and quickly!

We all have obstacles to overcome in our lives, in order to receive the blessings that we were promised. I know how challenging it is to work a 9 to 5 job and then come home and work another 40 hours in real estate.

Many courses that you may purchase will always say it is ‘fast and easy.’ It can be simple, but is it always easy or fast? I guess that depends on how much you are expecting and I am always expecting a lot. I teach real estate because I love to help people and I know that the more I give the more I receive! I have written many courses from Buy, Fix, Flip, Lease Option, Subject-to and now Short Sales – Foreclosures Gone Wild!! I am constantly updating the information in order to help the students understand that guidelines, techniques, requirements, and paperwork all change and when things change, you need to adapt accordingly.

I wrote an article “Who Moved My Market” back in 2006 when I decided that since the truck plants were closing and all of my 30 tenants where having financial problems, that it was time to move to Florida. I saw the down market in Michigan and I was still working on 100’s of short sales, rehabs, flips and subject to’s during that time. However, I wanted to do more and I seriously disliked the snow!! The hardest thing I had to do was to leave my family in Michigan and make the move. It all started with a book named “Who Moved My Cheese,” which I highly recommend that everyone reads.

I started teaching because after attending all the boot camps, I could see that there was always a piece of the puzzle missing. And for me to put into action what they were teaching in my State, something would always need to be changed in order for it to work. I never gave up hope as everything I touched turned to gold. I was determined that I wasn’t going to be a legal secretary for the rest of my life. I worked 80 hours a week to make it happen. Here are some tips that I feel are crucial to share with you in order to be successful:

1. Have a continuous marketing system in place and don’t stop marketing because if you do, you do not receive!

2. Have a website that gives you an online presence 24/7, so you are getting leads while you are sleeping. It also allows you to store all of your documents and notes for each file in a database. Dustin Griffin and I worked together on creating Deedflow. I am not saying I created it, however, he came to my office and saw all the white boards I was using and from that he created a system that allows me to even work on files while I am on vacation, if needed, because I can access everything online.

3. When you hire someone to do a job whether it is mailing your letters, painting a house or simply filling out your Seller Information Forms, you first need to know how to do it yourself and how long it takes. Similar to short sales, Title Companies and Realtors were never trained how to do short sales but yet they are suppose to do all the negotiations for you. I believe it is like handing them your checkbook and saying “Ok, whatever price you negotiate for the house, I will buy it.” Therefore, it is your responsibility to either teach the person who is doing your work with the right words and/or do it yourself until you can find that right person to replace you.

4. Create a team with Title Companies, Handymen, Attorneys, and Inspectors, etc. You may even decide to have staff. The goal is to create a team that will “flow” with you from deal to deal.

5. Education is the key to your success. Having a Mentor is a must, as you know every successful entrepreneur will tell you that they have/had a Mentor. Actively attending a Real Estate group or a Mastermind group can take you to the top much more quickly.

I have taught countless students over the years and just as they are ready to break thru, life gets in their way and they quit. I never quit as I don’t believe that the blessing I am to receive is “zero.” I am always believing for great things to happen in my life! Whatever you ask for, in faith, you shall receive….as stated in the Bible. Yes, I am a Christian and my faith is always what keeps me going. I have had major medical issues ie: had one of my kidneys moved, had my gall bladder removed, back issues and surgery, plus my family has had their medical issues as well. However, I never lost my faith or faith in real estate; it has supported me and my family through ALL of the ups and downs for years and years. I also like being my own boss.

If I don’t want to work that day, I don’t. I like checks coming in the mail to me without doing anything. So … if you have been saying “that won’t work for me” I say STOP IT! It will work, it does work, and what comes out of your mouth is what you receive…..good OR bad. And, you can’t do it alone, you need education, support and a team.

I hope this article helps you know that you can do it and make thousands of dollars. TIME IS MONEY! If you are interested in learning more about my One Day Event, NEW Online Training, 3-Day Safari, and more, please email my office. Also, I want to thank you all for writing me and suggesting ideas for articles based on your questions and needs. Please keep sending me those requests and/or questions as I do answer them directly!!!

Happy Negotiating!

Kimberlee Frank

www.SellFastRealty.com

www.ForeclosuresGonewild.com

www.RealEstateJunkie.com

www.ShortSaleNegotiating.com

Like me on www.facebook.com/foreclosuresgonewild

Like me on www.facebook.com/sellfastrealty

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Recently I got a short sale approved on a 4 bedroom, 1 bath for $43,800.00 and my partners and I were going to flip the property to another Investor. However, after reading the required verbiage that the loan servicer required to be written into the Deed, it made it impossible to sell the property on the same day that we purchased it.

The servicer was Bank of America and the Seller was going through the HAFA program. Bank of America always places a 30 day hold on the property. In addition, item #8 on their Approval Letter it states “Another buyer cannot be substituted without prior written approval of Bank of America. The buyer may not alter how he will take title. For example, a buyer may not enter into a contract to purchase a property and then amend the contract to purchase the property as Trustee for a trust or any other legal entity.” Based on that verbiage, you cannot close in the name on the approval letter and then immediately place it into a Land Trust, even though I hear people state that the Land Trust is for Asset Planning.

I totally disagree with the fact that a Land Trust is used for Asset Planning, as it only covers who the beneficiaries are, and the Trustee is responsible for signing all the documents. In addition, this means you must not sell the property to anyone until 31 days have expired. There are ways around the 31 day hold; however, I only teach that Super Secret at my Foreclosures Gone Wild Boot Camp. Check my website for the next event.

On the HAFA Short Sale Affidavit, which all parties sign including the Realtor, it states “(b) There are no agreements, understandings, contractors or offers relating to the current sale or subsequent sale of the Property that have not been disclosed.” What this means is that you cannot have a signed contract with another Buyer to purchase the property from you until after the sale of the property.

I have closed 100’s of short sales and on this short sale, they included the following verbiage on the approval letter which must be placed on the Deed granting the Mortgage Company a deed restriction: “There are no transfers of this property within 30 calendar days of the closing of this transaction. For the period between 31 and 90 calendar days after the closings, the purchaser is prohibited from selling the property for a gross sales price greater than 120% of the HAFA short sale price. If the closing agent is aware of any agreement whereby the buyer is to transfer title or possession of the property to any, entity, including borrower or a third party, the closing agent must obtain the prior written approval of Bank of America.” Normally we would fight over this wording and change it a little so we could sell it right away. However, this is a new letter that I have never seen before which also gives the Seller their $3,000 relocation fee by mail within 5 days after closing.

Two things above upset me. One is the fact that they are controlling the investor to not resell the property for more than 120% of the HAFA Short Sale price during the 31 to 90 days. It is NOT ok for the Bank to take advantage of our Sellers, now they are trying to control our Buyers, too! There is a way I work around this again, which allows the property to be sold at a higher price, versus the Bank telling my partner and I how much money we can make.

The second thing that upsets me is that the Seller doesn’t get their relocation money until 5 days after the date of closing. Many Sellers cannot move without this $3,000 in their pocket.

So…..where is the Gray Line I am talking about?

Closing the property in the name based on the short sale approval letter and then doing a Deed and placing the property into a Trust. Yes, I could argue it is for asset planning, however, when the Bank looks back on the deal, which they do, if they see any red flags with a transfer to anyone, including a Trust, this Short Sale is null and void. The Seller can sue the Buyer, you, for not following the guidelines of the Short Sale Affidavit and the Seller will now owe the deficiency. In addition, if you did transfer the Deed anytime during the 1 to 90 calendar days, you are in violation of the terms of the Short Sale Agreement and you could be sued by the Seller, Realtor, Title Company and the new Buyer. IS IT WORTH IT? Heck no. You should have bought that property for a low enough amount that would enable you to hold it for at least 91 days.

After you purchase the property, you can start marketing for a new buyer. If you decide to sell the property to an FHA Buyer and some Conventional Buyers, then you can’t sign a contract for 31 days, due to seasoning issues, and the 31 days starts from the time that the end Buyer signed the contract. You might have heard that you can sell your property within 90 days to an FHA Buyer, however, because of this deed restriction, you can’t sell it to them until it is 91 days.

So what did my partners and I do? I spoke with an Investor/Attorney that owns his own title company and he said that, yes, there can be a transfer into a Trust. I further asked his assistant if we could do both the A(Seller) to B(Us) transaction with them, then do the B(Us) to C(End Buyer) through them and she put me on hold. She then came back on the phone and said “Yes.” Because I am the mentor and I joint venture with partners, I will continue to state that there is a “Gray Line” and I prefer to wait it out. My partners agreed with me so we are closing on Tuesday. We are looking to resell the property for more than the 120% of the HAFA Program, so we will wait for 91 days, unless a cash buyer comes forward and all the paperwork is done correctly.

Don’t be desperate on your deals! If it looks like a duck, quacks like a duck, then it is a duck. We will sell the house after the time period has elapsed and I believe it will be sold for much more. Remember, if you are buying your houses at the right price, then some extra holding time won’t kill your profit.

Happy Negotiating!

Kimberlee Frank

www.SellFastRealty.com

www.ForeclosuresGonewild.com

www.RealEstateJunkie.com

www.ShortSaleNegotiating.com

Like me on www.facebook.com/foreclosuresgonewild

Like me on www.facebook.com/sellfastrealty

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