Are You A Friend Or A Foe?

As a short sale investor, your primary motivation in doing business with a distressed homeowner is to make a profit.  Nobody is debating that.  The question, a very important question at that, is how do you go about doing business with the homeowner?  I want to tell you that there is a good way and there is a bad way.

Inevitably, there will be many investors who will disagree with what I have to say.  But hey… that’s what life is all about.  We are all entitled to our own opinions, and the world would be a very boring place if we all agreed with each other.  So you are very welcome to disagree with me, however, I would urge you to consider the following.

Put yourself in the distressed homeowner’s shoes for one minute…

Many of the homeowners you will be doing business with are on the verge of losing their property.  The fact that they are ‘underwater’ means that when they sell their home, they will be doing so at a loss.  Emotionally, this is a very difficult position to be in.

The last thing that they need is to be taken advantage of.  They are going to lose their home, they are going to lose a lot of money, but the last thing they need is to lose the little dignity they have left.

As the investor who will be on the other side of the transaction, you have two choices.  You can either help them restore their dignity and self-esteem, or you can take away the last vestige of self-respect they’ve got.  Which would you choose?

Choose carefully, because this will determine whether you are seen as friend or foe.

Interestingly enough, positioning yourself as a friend or foe has both short-term and long-term implications for your success as a short sale investor.  You might be surprised to find out what the implications of your choice are.