4 lessons in Short Sales You should NEVER forget

[Nick J.]

This is in response to: Sharing Experiences Thread created by Charles.

If you're doing short sales, new to the game or just new to your negotiator I'm going to give you the most important lesson I've ever learned. This one lesson will literally save your business from being destroyed by liars, snakes and people that straight up just don't do their job.

Trust what I'm about to say as 100% truth, I have nothing to gain from sharing with you and I personally am currently in repair mode from having my business shredded to nothing but a stack of worthless files due to not realizing this lesson until it was too late.

My business has two really main important factors in ensuring success. They are having a great Realtor which fortunately, I have as well as a 'provable', 'successful' and 'knowledgeable' negotiator.

I'll go into another post regarding finding that one special realtor, for now, this is how to save yourself from the negotiator.

Your negotiator should have many key areas of expertise. Not only quality negotiating skills for you as an investor, not a realtor. We're trying to get profitable spreads on our deals, not shorts for retail prices. Having an experienced negotiator that understands this and is already successful in this is one really important key.

1.) Your negotiator should be able to 'willingly' share a few of his/hers other clients to you so that you can check their references and make sure they're accurate. At first, I thought this wasn't a good idea but now I realize that was a mistake on my part. There is nothing that will negatively affect the negotiator from doing this, especially if they are successful. Its not like you're going to be stealing business away from him/her, you're just checking the reference. I didn't do this before, but I can assure you, that I will not do business with any negotiator if they are unable or unwilling to provide references. Don't just take their perceived credibility or online social status for granted. It very well may cost you dearly. Even if they appear to be knowledgeable and are great to speak to over the phone.

2.) You're negotiator should be easily and readily accessible. This mean either by phone, email, text and even smoke signals if it means you've got open and constant communication with your negotiator. I've been fortunate to never have this issue until very very very recently where I'm working on being on the same page with my new negotiator(s). I'm confident in a successful outcome regarding communications but nevertheless, its vital, more than vital, its life and death that you have excellent communication skills with your negotiator. My previous negotiator(s) have all been extremely easy to reach. Its just tough to gauge what they tell you as truth and lie. We'll get to how to determine that a little later.

3.) You should receive constant, detailed and TRUTHFUL updates regarding your files. How often should these updates be? That's up to you. I know some professional negotiators are using software systems that allow you to login into their systems and be able to physically see the progress (or lack thereof) without having to bother the negotiator constantly. Another and more common way is to send out a weekly email with the updates. This is fine, but when its as generic/vague update that doesn't really tell ya much and its the same thing week after week after week after week, you need to have a talk with your negotiator.

There is no reason why your negotiator cannot update you with more specifics. Called Tuesday, spoke to a Mary, authorization uploaded, request for BPO done with Mary. Expected BPO time frame between 8/10 and 9/10. Will follow up in 3 days.

You think thats too much? think again!! An excellent update like this only needs to really come once a week right? Also, wouldn't an update like this seriously reduce the amount of time you spend calling and emailing the negotiator for updates. Trust me, if I got updates like that from my previous negotiator, I might have had a mancrush. I was just called 'high maintenance' the other day. Updates like this would make me seriously 'low maintenance' but again, I'm working with the new negotiator and working out all the kinks, especially after some of these devastating lessons that I've learned just recently.

4.) Verify, verify, verify!!!

What do I mean? Let me tell you a true real life story of two separate people. First guy. This guy has had several lost files to foreclosure. This guy has also NOT closed a single file with this negotiator and this guy does NOT personally know anyone else who has. Maybe this negotiator has successfully gotten approval letters for some people, but unfortunately, not a single person I referred to or know that has. Well, after being lied to for so damn long, this guys Realtor asks this negotiator for proof of any sort that the file will not get foreclosed on. See, this negotiator has claimed that they deal with specific people inside the bank and their communications aren't always uploaded into the banks system. They have more email communications. Ok, fine, no biggie right? WRONG.

See, this guys realtor is only asking for this information because the seller of the property and the listing agent(sellers agent) just got off the phone with the lender and it didn't go so well (not to my surprise anymore). The lender told them they had no info about the negotiator, there was NO short sale file open and the property was going to foreclosure shortly(I don't remember the exact time frame but it was soon enough that it created extreme panic) We needed verification that the negotiator did indeed have someone within the bank that they were communicating with regarding this file. We asked for it, it was promised to be given to us. Guess what, never seen the damn thing!!!

Another investor from Texas, who I took under my wing and willingly helped out with anything he needed was also getting the exact same treatment from the exact same negotiator, not surprising.

This investor dealt with the exact same problem, property was foreclosed on and the investor asked for proof of communication. Specifically a name and phone # to the person they are dealing with inside the bank so that the investor can verify that everything was ok. This was asked by the investor on Thursday, the negotiator agreed to it, then sent the investor an email with the files they had and the lenders 1800#'s :roll:

On Monday, the investor called the negotiator, obviously upset at this point. Had a few words amongst each other regarding the files(I wasn't on that particular call so I don't know exactly). Apparently, a few minutes later, after the negotiator has continued to fail to provide ANY proof that they have ANY communication with the lender regarding ANY of the files, the negotiator tells the investor he thinks its best they don't work together.

Get this straight, the negotiator has failed to do his job properly, failed to provide any proof of his job being performed properly and now is quitting on the investor? There is a name for that, unfortunately, this is a family forum and names that start with a B-move aren't allowed :wink:

So, the lesson here. Get a damn authorization letter yourself!!! Don't take the word of someone who literally holds the success of your business for granted. If not you personally, then make sure your agent has an authorization at least.

Don't abuse this though, you certainly don't want two negotiators. You simply want to call and check status if you don't don't feel you're being told the truth. I'm sure once you get some approval letters, communications with your negotiator improve or are great then it wouldn't make much sense to have to check on the negotiator but in the beginning, you better make damn sure of it!!!! Every single one of my issues would have been solved if I had done this to begin with. I would have known the previous negotiator was flat out lying and I would have pulled them before it was too late, saved countless business relationships and salvaged my currently damaged credibility due directly to this negotiators actions.

If you do nothing else, please do this. I can't promise you enough how many problems this will save you from. I literally have a hard time sleeping at night lately because of the mistakes that I made in putting too much trust in my previous negotiator caused many families to lose out completely when I could have saved them from this persons unprofessional approach to how they do business. Think to yourself, how would you deal with knowing that you could have at least done something to help them. The sellers got the sh1t end of the stick and they don't even know who was faucking them.

I could probably put another few down but I felt that these were so important that adding anymore might take away from the importance of these. If you take these lessons that I've personally learned and apply them, I'm sure other issues will quickly become non-existent or an easily found solution.

this email is not meant to slander anyone. Nothing I've mentioned about anyone(notice I never mention any names) involved is even remotely false. I know the people involved might see this and they will know I speak the truth and I can PROVE my truthfulness of the claims that I've stated today. This is not television and there are NO reenactments and all parties are guilty with no chance of being proven innocent. I've made some pretty serious mistakes that have caused horrible problems for families involved. Please don't let my mistakes affect the lives of those homeowners you work with.

I hope this was of at least the smallest amount of help to you.