If you invest in Short Sales or have ever thought of doing so, one of the first acronyms you will learn is “BPO”.  That simply means “Broker’s Price Opinion”.  I have been involved with real estate long enough to hear many different thoughts on the BPO.  I have heard the process of affecting the BPO as “influencing the BPO” and the more PC version “educating the BPO”.  Well I am writing this today to let you know about a recent conversation I had with my brother.  It all stems from the recent launch of DC Fawcett’s “Virtual Short Sale Investing Blueprints”.

I want to preface what I am about to say that I have not yet practiced this new method.  And I am not saying that DC is wrong in the way he teaches.  I just want to offer a different spin on the BPO process.

I would also like to say that this conversation again was with my brother.  Graham Treakle has been a short sale expert for many many years.  He is responsible for me being where I am today.  Graham is responsible for many successful investors across the United States.  Graham, besides being my brother, is a very trusted and well respected figure in the industry.

The other day after I was reviewing DC’s materials and speaking about the investment philosophy with my brother, we had a very enlightening conversation.  Graham also offers a similar program to DC’s with a few different spins.

Anyway, DC teaches that you get the high-end property under contract and remove it from the MLS prior to educating the BPO.  Then, once you have an accepted short sale offer, you list it back in the MLS at a quick-sale price. You do this because you do not want the current list price to play a factor when an agent is conducting the BPO.  If it is listed at X dollars, the BPO will come in at X dollars.

I have not yet reviewed DC’s full course…it is in route to my front door as we speak.  And before I go against what DC teaches, let me say that I am sure his method works.  In fact, I think DC has an excellent program and would like to congratulate everyone who invested.  As you can tell, I am trying to tip-toe around this as gently as possible.  DC is someone whom I respect very much.

My conversation with Graham pointed out one potential flaw to the system.  Once you have the short sale accepted, the lender will give you 30 days to close on the property.  You can often get an extension to 60 days, but nonetheless, you are dealing with a short time frame in which to close on the property.

Now what if, and this is a hypothesis, you get the property under contract.  Then you remove it from the MLS for a few days and have the agent re-list the property at the price you want the BPO to come in at.  This price is the quick-sale price that DC refers to.  This is the price that you feel confident that the home will sell quickly.  But because you have not waited for the accepted short sale offer, you have the property listed in the MLS at that quick-sale price for an additional 60-90 days or however long the short sale process takes.

When the BPO comes in, it comes in at the listed price.  That is fine, because just by negotiating with the bank you will get them to take a certain percentage less than what the BPO comes in at.  Lets say that number is 80%.  Well then you still have 20% of room to play with and make your profits!

It may not be as big as the spread you can make following DC’s approach, but 20% on a million dollar property is still $200K!

The real kicker is that you have had an extra 60-90 days to locate a buyer for the home, thus ensuring that you will be able to close when the time comes.  You will have a list of interested buyers.  Granted, you do have to list the property as “Short Sale Pending”, but those extra days in the MLS could make a huge difference in whether or not you are able to sell the property.

I will give you an update on this when I get DC’s full course in the mail and when I close a deal following this approach as well.

If you have closed a deal this way, please let me know.  And also give me your thoughts.  Like I mentioned, I have not closed a deal this way but will let you know when I do.

Cheers,

~ Ross Treakle

Unless you have been living under a rock, you know that foreclosures are at an all time high in today’s market. And with the increased number has come along several different models of foreclosure investing which all follow the same principles.

You have DC Fawcett and his recent launch of VSSI blueprints and DVD course. You have Nathan Jurewizc of Short Sale Riches and you have some of the old school folks like Jeff Kaller and my brother Graham Treakle. (if you want more info about Grahams program which they teach you to run through a law firm, please just contact me).

The model is basically this…

1. Get Realtors to send you over high dollar properties
2. Contact the listing agents and tell them you will negotiate their short sales for them
3. Gather paperwork from seller to begin negotiation
4. Negotiate
5. Sell
6. Get paid!!!

Depending on which system you follow, there are some variations when it comes to the latter steps of the process. The reason why I wanted to share this with you is because if you are doing short sales or are thinking about adapting short sales as your investment vehicle, this is the process you need to learn.

I have been around foreclosures and short sales for a long time because my brother is a national educator. The fact is that this model is the best shorty sale investing model I have ever witnessed. The potential profits are HUGE. The marketing costs are zero.

I do not want to pretend like I know as much as any of these educators…and I am not an attorney so you should check with one in your area before doing any type of investing. But I do want to encourage you to take advantage of these resources. The system is crazy simple to follow and is the easiest foreclosure investing model I have ever seen.

If you want more info or are interested in this investment strategy, please feel free to contact me…you can even just write a reply on this blog thread…

Cheers,

Ross Treakle

Today, March 31st, is your last chance to get the REI Concepts Magazine for only $1.  This magazine is chalk full of awesome real estate investment education from some of the nations foremost experts on the subject.

We asked folks like Andy Heller, Bob Diamond, Graham Treakle, Gary Brevko, Peter Vekselman and a few others to contribute and all of them jumped at the opportunity.  We have put a lot of hard work into making this a very informative, educational and professional magazine.  Just take a look at the cover, I think we have succeeded!

If you sign up for the $1 issue today, you will be emailed the first issue tomorrow…April 1st.  You will then have a 30 day trial to the magazine which you can cancel at any time.  After the 30 day trial, you will be billed $47 a month to continue to receive the #1 online real estate investment magazine, REI Concepts!

Next month we already have 2 new contributors lined up with plans on adding 1 or 2 more.  We plan on continuing to add at least 2 contributors a month over the next several months.  We have big plans and I want to reward you for getting in on the ground floor….

So Claim Your $1 Issue Now!!!!

Cheers,

~ Ross Treakle

I wrote yesterday about how hot of a topic REO’s are and how many of our contributors to the REI Concepts magazine have been raving about investing in REO”s and doing so for pennies on the dollar!  Well, I still have not told you anything about the REI Concepts Magazine.

The REI Concepts Magazine is my effort to reach out to the new investor and offer a new tool for getting the education needed to become successful in the business.  One thing that you will hear all successful investors say is that you always need to educate yourself.  Whether you are just getting started or an experienced investor, education is vital to your success.  It may be more vital to the new investor, but everyone has something to gain.

In my constant strive to reach out to the new real estate investor, I came up with the idea of creating an online magazine.  Thus the REI Concepts Magazine.  The magazine is compromised of audio transcriptions provided by our growing team of experts.  Each expert is asked to call in and record a 10-15 minute call each and every month about something going on in their business or any topic as long as it is educational to the real estate investor.

These are the same experts who I have teamed up with to create mini-sites that provide high quality information at an affordable price.  While I am a big believer in the big home study courses and attending live boot camps, there is a need in the market for affordable information.  And that is what I am striving to provide.

From this point forward, when you buy one of our cheapo training programs, you will be put into our REI Concepts membership!  The first issue, due out April 1st, will include 25+ pages of content.

A few of the article titles…

“The WOW Factor”

“Is Wholesaling Dead?”

“Get Paid When You Sell And When You Buy!”

“Investor vs. Retail Short Sale Investing”

That is just a few of the titles we will be presenting…let me tell you, I am super excited.  And as each month passes, we will be adding more content and more expert contributors.  We are even dangling the carrot in front of our experts to entice them to deliver the best content each month as the person who does will be rewarded.

To get your hands on our first issue, all you have to do is buy one of our cheapo products!

“Cover Your Ass Contract Clauses” class

“Learn to Lease Purchase” class (includes an REO class)

Cheers,

~ Ross Treakle

P.S. If you have already purchased one of the products and are still an active member, you will automatically receive the REI Concepts Magazine as a bonus.  If you are not an active member, rush on over to one of the sites and sign up today!

PLEASE NOTE: this is a digital product, you will not be mailed anything!!!