Magic BPO Success Secrets
by
Cory Boatright
Copyright 2012 Cory Boatright,
All rights reserved.
Published in eBook format by eBookIt.com
ISBN-13: 978-1-4566-0693-0
No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems, without permission in writing from the author. The only exception is by a reviewer, who may quote short excerpts in a review.
Introduction
Hi guys. We all know that the real estate market has changed drastically over the past few years. More than ever, Americans are falling behind on the mortgage payments, and putting as many foreclosure homes as resale on the real estate market. With foreclosures on the rise, the real estate market has taken a major blow, with one exception - the realm of SHORT SALES!!
Many are aware of the short sale, but very few are continuously making ample profits from them, investors and Realtors alike. It's astounding, really, that more people aren't taking advantage of short sales when the biggest hurdle to overcome is getting the sales approved by the banks.
Many are discouraged, because most often, the BPO (Broker Price Opinions) often shoot down the sale. The bank hires an Appraiser or BPO to put a value on the property, and all too often, the BPO is turned in with an inflated rate. When the BPO is set high, then the sale has essentially just been killed. So many people are tired of spending their precious time (because time is money) working on short sales, just to have the agent beef up the BPO and slaughter their deal.
If you're among these hard working investors who are tired of working hard for naught, and need just a little help influencing the BPO, so that your short sales are approved, then this e-book is for you!!
But why would you want to learn from me?
I have been published in the Wall Street Journal for successful business aptitude and I continue to pursue real estate as a full-time investor and Loss Mitigation Specialist. I own several companies including a nationwide loss mitigation service with a team of full-time debt negotiators and a short sale marketing brand (RealestateAutomator.com & ShortSaleology.com) that offers high-end coaching programs, software, real estate tools and training programs.
I believe that if you're going to do something, then you should do it right. So, I am passing on my secrets in hopes that if you're truly invested in earning continuous profits from short sales, that you will be doing it the right way. I want to cut out the nonsense and build up and get straight to the business of influencing the BPO to turn a profit in your favor and start closing your short sale deals!! So, let’s take the plunge and dive in.
A Glance at the Real Estate Market “Epidemic” Today
It would be nice to think the foreclosure epidemic is almost behind us, but that's simply not the case. With the vast number of adjustable mortgage rates set to adjust this year, the worst is yet to come, and the number of American homeowners with upside-down mortgages will increase. They wouldn't be calling it an “epidemic“ if it wasn't making such a negative impact on not only homeowners, but decreasing city revenues, and increasing the number of vacant, abandoned, and dilapidated properties. This just the beginning and it’s not going to slow down anytime soon.
Here is how you can make a difference… Throughout the history of real estate investors, the best time to make money is during a down or flat market. Right now is the time to make the most money. With the number of destitute properties on the rise, you can easily snatch them up for up to 60% below market value!!! If you can find the right strategy, then you can make a change. For example, if your properties are over-leveraged, and the property won't sell, because the homeowner owes more than the property value, then a short sale can be the answer. Let’s discuss the short sale solution a little bit.
The Short Sale Solution
Here is the benefit to the homeowner. When a homeowner chooses a short sale, they are rid of a house they cannot afford, and they are relieved of back payments (except with the occasional concession), and by avoiding foreclosure, prevent ruining their credit score. Most importantly you were able to influence the BPO and close the short sale, thus able to purchase the property at a highly reduced rate. This allows you to make big profits from over-leveraged, ugly and in need of repairs type of houses.
Realtors have a unique opportunity working with short sales. Short sales have become essential for Realtors because of all the foreclosures on the market today. As buyers become more aware of pre-foreclosed homes, they may only be interested in short sales, thus being the primary income for most Realtors. Many properties can be listed at a significant discount to their market value, and are easier to sell and collect a Realtor's commission from the lender. If you want to make a higher earning on a short sale, then you must be able to influence the BPO. The BPO makes up for at least 75% of getting a short sale approved. If it comes in too high your opportunity to get your short sale approved will be slim to none. Let’s discuss the breakdown on the BPO otherwise known as “Broker Price Opinion”.
Breaking Down the Broker Price Opinion
It is imperative that you learn about the BPO (Broker Price Opinion). The Broker Price Opinion or BPO is required by the bank for the Short Sale Package that you submit to them. The BPO is generally outsourced to an external company, with an already established relationship with the bank that will manage the BPO for the bank from beginning to end. The bank will usually have a long list of BPO approved vendors they can work with.
The lender is extremely reliant upon a BPO because bank's work in ratios. Say if a homeowner owes the bank 250,000, but the property worth to the bank is only 200,000. When considering a short sale, the bank will generally reduce the rate of the loan to
