Protracted, complicated and costly.

The list of adjectives that real estate agents use to describe the short sale process is long and lengthy, but certainly not distinguished. In fact, it is almost always described as anything but “short.”

The short sale is a real estate technique that has been around for years; however, today it is rarely successful because of the headaches that it creates, dragging transactions on for months on end and delivering reduced commissions when closing time finally rolls around.

Why does a short sale seemingly take so long?

For starters, the process requires significant coordination and cooperation from several parties, including the buyer, seller, listing agent(s) and lender. Anytime there are so many moving parts things can get a little tricky…and lengthy.

In addition, a lender is essentially deciding whether or not to sell the property for less than (or “short” of) the amount it loaned the original borrower. It therefore needs time to crunch the numbers to ensure the deal is right for them in the long-term, which could be complicated if, for example, there is more than one “owner” of the financial instrument.

And let’s not forget that lenders today are being inundated with multiple offers on thousands of different properties, which can create a logjam of paperwork as they try and sort through it all.

So does it really benefit you to pursue a short sale?

The short answer is a resounding YES because times are changing – there are numerous ways in which you can vault your offers to the top of the stacks and do quite well with short sales. All it takes is the knowledge to know how to coordinate these deals properly and be aware of the ways in which to get them done fast.

Consider the following two tips that will make your short sale experience a better (and hopefully more lucrative) one:

First, the obvious: Your short sale packages must be pristine.

Everything must be in order and complete from the moment you submit them to the lenders on behalf of your buyers and sellers. Keep in mind that all lenders are different and, consequently, often have different submission requirements. No two short sales are alike. So know, learn and follow the various submission requirements to a tee the first time (and every time) to ensure optimum results.

Second, and not so obvious: Your short sale efforts should always include a forensic document audit.

This is the real key to success with short sales because it can get your packages moved to the front of the line virtually overnight. This process starts with enlisting the help of a legal professional to complete a review of the sellers’ mortgage documents for potential fraud, including possible TILA, RESPA and other consumer rights violations.

It’s a huge difference maker.

Recent studies from the Credit Law Group indicate that more than 80 percent of mortgages that were originated since 1999 have some type of consumer rights violations in them. Identifying these violations can create leverage in negotiations, alerting lender legal departments to expedite your files.

In other words, the audit can be used to threaten the possibility of your client pursuing legal action, which most lenders would prefer to avoid at all costs – they already have enough on their plates. The prospect of litigation is simply not a viable option if violations are detected because the lender knows it will likely be cost prohibitive.

And if it does go to court, monetary damages could be awarded based on the severity of the violations, which can be applied to the short sale package to drive down the principal amount of the mortgage.

Last but not least, no deficiency judgment will likely be filed in a case that undergoes an audit because these can be negotiated away. The reality is that the likelihood of a bank collecting on these is slim to none, meaning that the seller(s) are assured of the best possible outcome.

It’s a win-win all around for you and your client.

Clearly, negotiating the murky waters of a short sale requires current knowledge and the support of a team of professionals who all possess the skill sets and goals to get the sale through efficiently and effectively.

It is important to first educate yourself about lenders, including their short sale processes and package requirements. Next, team up with a legal eagle who can help you audit mortgages to strengthen your negotiation position.

Do this and it will make the process short, easy and profitable … as its name suggests.

To get started today visit eCampus to learn about the dynamic short sale training opportunities now available through the Certified Foreclosure Agent Program. These courses take you by the hand and show you step-by-step how to create winning short sale packages that close in as few as 60 to 90 days, increasing your closing percentage exponentially at a time when other agents may be struggling to make ends meet.[/quote]

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MySpace.com – this social network was one of the first to hit the scene. Creating your unique page is a great way to market yourself, get buyer leads, and post your available properties for sale. You can input photos and video, article content, network with other real estate professionals and network with potential buyers online. You can also utilize relevant advertising to monetize your page as well.

Facebook.com – this site recently surpassed MySpace in popularity. You can create your profile, upload photos of properties and organize them into photo albums. If you flip properties, you can put up before and after photos. You can also link to your website as well. You can search Facebook for other real estate investors and request to add them as “friends.” Each friend that you connect with also connects you with their network, thus expanding your reach. You can network with possible buyers and sellers as well.

LinkedIn.com – This is a great professional networking tool. You create your professional profile and ask your contacts to join your network. You can post and answer real estate questions to the entire LinkedIn network increasing your visibility. This is a great way to network with other professional investors, find birddogs, possible partners to invest with, etc.

BiggerPockets.com – This is a real estate investor specific social network. You network with other investors, ask and answer questions form other investors, brainstorm ideas. Plus they have various helpful tools and calculators for investors.

REIClub.com – this is one of the oldest REI resource sites around and it has tons of great information. They also have an active forum community. You can ask and answer your real estate investing questions, talk about your current deals, find other investors to network and partner with.

Twitter.com – Once you register, users “tweet” what they are working on or planning by typing a short sentence. Other users can join to “follow” your tweets. It is a great way to get the word out on pressing real estate news, etc.

Most social networking sites allow you to link to your website which is a great way to build SEO links and build your website traffic as well.

In today’s economy, Real Estate Auctions are on the rise. And this trend shows no sign of decreasing. The National Association of Realtors estimated that 1 out of 3 properties sold in the U.S. in the next three years will be sold by auction.

Real Estate Auctioneering companies are seeing a high increase in real estate professionals are learning to conduct auctions. With a bit of training, anyone can learn how to conduct an effective real estate auction.

Real Estate professionals who are trained auctioneers can be consultants with homeowners on how to market their properties for a quick and equitable sale as well as help homebuyers with information on what to do at an auction and get the best deal.

Homeowners using real estate auctions increase the chance to sell their home by up to 900%. That’s huge! Plus, 50% of all real estate auctions sell at fair market value or better.

The lure of a deal is potent, and real estate auctions attract swarms of potential buyers to a property. Homeowners are usually blown away by how much exposure their property gets in an auction.

For people trained as real estate auctioneers it a fantastic opportunity to increase your income. Fortunately for those interested in becoming a professional real estate auctioneer, the process is super simple.

One of the country’s top training real estate auctioneer programs provides you with all of the knowledge and skills necessary to secure your place in this upwardly mobile industry.

For more information on real estate auctions and how to become an auctioneer, go to: www.GetPAidInTheAuctionBusiness.com/8

Make sure you are setting a goal you truly want to accomplish – this sounds simple enough. In real estate, it is important to have a lot of knowledge about your local market and the type of investing you want to focus on (and make a living doing it!). If you set a goal this year to learn to close short sales quickly, make sure you have working knowledge of the short sale process. You should ask yourself whether you really want to pursue this or are you jumping on someone else’s bandwagon?

Aim high - Even if you do not reach the entire goal, if you are serious and work hard to attain your goal you will still accomplish a large portion of what you set out to do.

Write down your goals - they should be as detailed as possible without any negative connotations. For instance you write, “I want to make $250,000 income this year with real estate.” This is a general goal without much detail on how you will accomplish it. To be more concise you write, “I want to flip a minimum of 25 houses this year in Anytown, USA with a minimum profit on each transaction of $10,000.”

Keep your goals to yourself. You may encounter negative feedback from others (like fellow investors, family or friends) who do not share your philosophy. You should share your goals with your mentor or coach if you have one. They can steer you in the right direction and help you to achieve your goals and keep you in a positive frame of mind.

Are the decisions you are making helping to achieve your goals? – Before you make final decisions, you should always pose this question to yourself. If the decision is going to bring you further away from achieving your ultimate goal, you should rethink that decision. It sounds easy, but people often make decisions on the spur of the moment without thinking through the process.

Review your goals often. – It is important to review your goals on a regular basis so you can measure each small success. Making a few mistakes along the way is part of the process and will help you to hone your goal-setting skills.

Investing in a foreclosure property with your IRA can be a great way to increase your available funds to make deals and possibly grow any earnings tax-free. Yeah, tax-free earnings. For those veteran investors (and learned newbies), tax-free earnings is exactly what you have been looking for. That is one of many benefits of investing with your self-directed IRA that can help build your wealth portfolio.

Here are a few points everyone needs to know to help get started:

1) Get that foreclosure.
Your IRA can purchase a foreclosure property which could free up other available funds for additional investments. Notice the ‘Your IRA’ part of that statement. Since your IRA owns the property, all expenses that go into the property must come from the IRA account. Because of this, your IRA can reap certain tax advantages (#4). If your IRA doesn’t have enough to own and maintain an investment property outright, you could always own a specified portion of a home through a partnership (undivided interest) or look into non-recourse loans.

2) Go ahead, sell it or rent it out!
If you decide to rent or sell a property, that decision is completely up to you. Either way, it will help you reach your investing goals if you’re using a self-directed IRA. The funds received from a sale or income from renters would go directly toward growing your IRA account, which in turn, will help you make more out of your investments.

3) Tax-Advantages!
The two types of IRAs, Traditional and Roth, have different tax advantages. With a Traditional IRA investment, you would not have to pay tax on any earnings until you started making qualified distributions at 59.5 years old. The idea is that you could possibly be in a lower tax bracket at that time and enjoy the fruits of your labor with less tax applied than you do today.

The Roth IRA allows you to grow all earnings tax free (meaning you never have to pay tax on it) since the money used to fund the account is ‘after-tax’. Paying tax later at a lower rate (Traditional) or not ever paying tax on earnings (Roth) makes that foreclosure investment look even better, doesn’t it?

4) Where’s your IRA at?
To invest in foreclosures with your IRA it must be a self-directed IRA. Unfortunately, most financial institutions will not allow you to self-direct your IRA investments because they want you to invest in their stocks, mutual funds, and bonds portfolio. To get out of that trap and start choosing where your money is invested (i.e. foreclosures), you need the assistance of a qualified and experienced self-directed IRA custodian. A custodian acts on your behalf to facilitate your self-directed investments through IRAs, 401ks and other small business retirement accounts.

5) Do your research.
Self-directing IRA investments in real estate is perfectly legal and has been since 1974. You should be aware of the guidelines the IRS has published about IRAs (IRS Publication 590. You wouldn’t invest in a home without knowing about the property, would you? Knowing your investment funding options should be treated the same way. Consult your financial team (custodian, CPA, and/or lawyer) to learn as much as you can to maximize your investment’s tax benefits.

Do some homework, find the right self-directed IRA custodian, and free up additional capital to start growing your foreclosure investments tax-free! Using a self-directed IRA is a great way to build out your investment portfolio and reach your financial goals.

Jeffrey A. Roth is the Real Estate Channel Manager at Equity Trust Company. Equity Trust Company is an experienced self-directed IRA custodian with 34 years of service and is recognized as an industry leader with over $3 billion in managed assets. Learn more about self-directed IRAs at http://www.trustetc.com.

In today’s sluggish economy, auctions are becoming increasingly popular. And this trend shows no sign of slowing down anytime soon. Real Estate Auctioneering is a niche growing in popularity. Just turn on the TV late at night and you will see what I mean. Those late night commercials promoting a local real estate auction are hard to miss.

Real Estate Auctioneering companies are seeing an upward trend in real estate professionals who want to learn how to conduct auctions. With a bit of training, you can learn how to conduct an effective real estate auction. This a a new way for savvy, resourceful real estate investors to capitalize on a growing trend.

Real Estate professionals who are trained auctioneers can also be consultants with homeowners on how to market their properties for a quick and equitable sale. They can also help homebuyers with information on what to do at an auction and get the best deal.

With all the recent publicity more and more homeowners anxious to sell and they want more information on how to get their home in a local auction. Will you be the first real estate professional in your community to jump on this opportunity?

For more information on real estate auctions and how to become an auctioneer, go to AuctionMentoring.com

The NAR (National Association of Realtors) has the following statement on their website, “The National Association of Realtors® welcomes the strong response this weekend by the Treasury Department and the Federal Reserve Board in response to the market turmoil and apparent overreactions that began last week affecting Fannie Mae and Freddie Mac. The health of the American economy depends on Fannie Mae and Freddie Mac and the steps taken by the U.S. government make clear that the role of Fannie and Freddie, in making fair and affordable mortgage loans available for home owners and home buyers, must not and cannot be interrupted.

“We support the federal government’s actions and authorization to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit during a period of stress in the financial markets. Fannie and Freddie play a central role in our housing finance system, and we agree that they must continue to do so as we work through the current housing correction.”

Lyndon Larouche is a top economist and former presidential candidate who has somewhat “predicted” the downfall of Fannie Mae and Freddie Mac. He issued a statement this past weekend, “The financial system is already dead. It cannot be saved.” LaRouche expanded: “If any of the reports of a planned bailout of the two big mortgage lenders, by the Treasury Department or the Federal Reserve are true, I say, ‘Forget it.’ Any such efforts to delay the funeral of the present global financial and monetary system will only make matters worse. A bailout will cause an accelerated hyperinflationary explosion, far worse than the hyperinflation that hit Weimar Germany in the autumn of 1923. Back then,” LaRouche continued, “Germany had a gun pointed to its head. The gun was called the Versailles Treaty, and Germany had no choice. Today, the United States has a choice. I spelled out the choice in numerous recent locations.” He goes on, but you get the point.

We have already seen a tightening in mortgage approval standards. Proof of income, higher credit scores and minimum deposits are now required. The tightening in lending practices will more than likely continue for the next couple of years.

Is this the “end of the world” as we know it? Certainly not! Buying and selling real estate is a permanent part of our existence. People will always have a need to buy/sell property. They change jobs and have to move, have more children and need more space, or a family member passes away. Economic shift may put a pothole (sometimes a deep one) in the middle of the road, but the road will never close on real estate.

Michael Jackson, the self-proclaimed “King of Pop” almost lost his infamous Neverland Ranch in California to foreclosure. (An investment company stepped in at the 11th hour and took over the loan) Jose Canseco, Ed McMahon, Rep. Laura Richardson of California and Evander Holyfield have properties that are in the foreclosure process. Some are financially strapped and can no longer afford their homes, while others are throwing in the towel and simply walking away.

Some homeowners are walking away from their properties because they owe more than the property is currently worth. Most celebrities can probably afford to lose one property. More than likely, the property up for foreclosure is not their primary residence. Because of WHO they are, they are able to financially recover from a foreclosure loss a lot faster than the average homeowner losing their house to foreclosure.

99% of people go through varying degrees of financial strain in their lives (some more than others). Logically, these bumps in the road of life will hit the rich and famous on occasion. The media jumps on these stories because it sells papers, magazines and boosts TV ratings. The media intimates that if it happening to the rich and famous, we must really be in crisis.

The reality is that only about 2% of ALL mortgage loans are somewhere in the foreclosure process. A majority of homeowners who enter the foreclosure process work out a deal with the lender to save their home from being foreclosed. Some areas of the country are actually seeing an increase in property values and a decline in foreclosure filings. However, these statistics are conveniently left out of media reports – surprise, surprise.

Real estate has always been a reliable investment and will continue to be for a long time to come. In fact, smart and successful investors are buying up the bargains now because they know appreciation is a short time away. It is great time for “buy and hold” investors.

Lease Option real estate investing is becoming a more common strategy for smart investors in this market. A Lease Option investment strategy means signing a lease contract on the property “with an option” to buy with a potential buyer.

There are many details involved in this strategy. It is always a good idea to consult with a real estate attorney before signing any agreements.

A mentor or expert in this strategy can also be helpful in gaining insight into the Lease Option investing strategy. For additional information, see the GuReview.com experts, Andy Heller and James Gage who specialize in this niche.

Because of recently declining prices in homes, banks and lending institutions are making more deals than they have in years making short sales a great opportunity for everyone involved. The huge increase in short sale activity is due to the increase in subprime lending and the Adjustable Rate Mortgages that were written over the last 5 years that are resetting at astronomical rates.

Because these homeowners are now unable to afford their mortgage payments and the homes are worth less than what they paid, they are looking for ways to avoid foreclosure and get out of a potentially bad situation. Enter the short sale….

There are several strategies to find a good deal through a short sale. GuReview.com has a distressed homes search and there are over 480,000 properties in preforeclosure as of today across the country. This is a good place to start researching potential deals in your area. Here is the link to search properties:

foreclosures.gureview.com

There are several methods to contact the properties you have identified as potential deals. Some investors send postcards or letters to these homeowners with catchy marketing phrases to get them to call. Bandit signs are also an effective strategy to market your services and get potential deals. Post the signs in the general areas that you want to target. Some investors actually go knocking to the homeowner’s door to check out the property and see if they may be interested in selling the property.

You have some great possibilities, now what? You know the profitability is there. There are many nuances and details in negotiating and putting together the short sale package to the bank. This can be a daunting and overwhelming process.

Hang in there and stay determined. A good piece of advice? Don’t try to do your first deal on your own without knowing the exact steps you need to take and give you confidence to close the deal. Take a short sales course or seminar to get the information your need. Attend a bootcamp or get a mentor. There are many educational options – the knowledge you gain will provide endless opportunities.