Building a Short Sales Team

[Ken S.]

Hi Everyone,

Long time lurker here with my first post! I started my REI career in '06, doing a few rehabs. The past year I have done mostly lease purchasing and would like to venture into short sales. I am in the process of assembling my team and would welcome any opinions and/or advice on this. I prefer to have a team that is local to me, but if proximity doesn't matter, then I'm ok with that as well.

I am specifically looking for negotiators, transactional funding and HMLs. The question I have is: What should I be looking for when interviewing negotiators, HMLs, etc.?

[Sergio Loreto]

I have been doing short sales for two year. I reached a point that I want to subcontract just about all the phases of the short sales process.

Here is what you need:

1) An important part is a good negotiator. This is the part that will take more time in the SS process. You can put an add on Craigslist and ask for people who have experience with loss mitigation work. They could have worked for a bank, an attorney's office or a real estate agency.

My plan is to offer 20% of my net to the negotiator as his fee. It will keep him motivated to close deals.

2) Another critical aspect is the BPO. You can be present at the BPO yourself or you can hire a ex BPO agent to be present when the bank send his BPO agent. That person does not have to be paid commission, but I believe that $80.00 to $100.00 would be well worth it if this person can influence the BPO in your favor.

3) You will also need an agent to bring you deal. My current deal with agents that bring me deals is the following. I guarantee them the full 3% of the amount I sell the property at. I also give them 10% of my net profits. That will keep your production line full of deals. Since this agent is well paid and bringing you deals, you can train him to give your paperwork to the home owner and get it filled out.
If you are currently using some advertising to get the home owner's to call you, then you would need a agent just to list the properties for you. No need to pay him/her extra other than the 3%.

4) Finally, you should get an assistant to help you out with mundane stuff like, preparing paperwork, making phone calls, serving as liaison between you and the mitigator.

That should take your business in auto pilot. You would then concentrate on getting deals, signing contracts and collecting checks.

Serg