This week on The Most Dwanderful Real Estate Podcast Ever, Dwan walks listeners through the second offer to the bank during the short sale process.
This second offer should tell the bank that you are serious about this property but you also want to point out to them all of the negative things about the property and the surrounding area.
You want to jump your offer to 60% of the value of the house but also build fear in the mind of the bank based on other houses in the area, crime reports, and the list of registered sex offenders nearby.
They will inevitably ask you why you want the house in light of all of the negative things you pointed out, and Dwan will cover that on the next episode about the third offer to the bank.
Remember that you can talk to Dwan on Wednesday mornings during the LIVE Coaching Call to get help as you walk through this short sale process or anything in real estate investing. Just go to Dwanderful.com and sign up for the membership site!
Time Stamped Show Notes
- 1:36 – If you normally listen to the podcast, you might want to switch over to watching the video version on Dwanderful.com.
- 2:40 – Dwan talks about her new backdrop and the apartment in Iowa where she is staying for the summer.
- 3:57 – Drinks with Dwan.
- 5:23 – Dwan checks in with you to see how your deals are going.
- 7:27 – Last week, we talked about the first offer for the bank, which should be for 40% of the value of the house. The bank will counter this offer and the negotiation will begin, which is good for everyone.
- 10:07 – If the bank accepts your first offer, you should be scared because they must know something you don’t know.
- 11:50 – The purpose of the first offer is to create an emotional attachment between the loss mitigator and the homeowner. While the loss mitigator is important to know, loss mitigators turn over in an average of 7 months, so you should really find out the asset manager.
- 14:32 – The third offer is Dwan’s favorite because she gets to be a bit of a bully.
- 15:46 – With the second offer, you raise to 60% of the value of the house. This demonstrates to the bank that you are serious and willing to work, even if this is giving them false hope. The intention with this offer is to plant fear in the mind of the bank that they might get stuck with this property if they don’t sell it to you.
- 17:48 – To plant fear, you want to send them as much negative information as you can find about the area: pictures of boarded up houses, new construction at the same price point as this house, crime reports, and especially a list of the registered sex offenders nearby. The shock value of these things will plant that fear.
- 26:06 – Dwan shares a personal story that led to her finding out about the registered sex offenders list and why she always sends this during her second offer.
- 32:28 – After you submit your first offer, follow up with the bank to see what they thought and then submit your second offer.
- 32:47 – Go on the Dwanderful Facebook page and help name the Dwanosaur.