Wachovia Takes a Hit
November 9, 2007
Wachovia seems to be the latest bank to be effected with the credit crunch.
Take a look at the article here:
http://biz.yahoo.com/ap/071109/wachovia_writedowns.html
Also, be sure to check out Preforeclosure Mastery, as the site goes live this Tuesday.
Take care
-DP
Homeowners Are Like Hookers
November 6, 2007
I know I’ll catch some heat from this but no one has ever had the guts to say it. Forgive me for the bluntness of this post, but I assure you that there’s an important point to the story, so listen up.
Never pay the hooker any money until she’s completely finished with her services or she’ll bail on you leaving you drawers down and empty handed all while she spends every last nickel.
Here’s how this relates to real estate…
In many cases, especially when dealing with homeowners in preforeclosure, you’ll be forced to give them time and money to move. For example, the latest deal I did, I told them up front that I would give them time to move plus some money to move with.
Well, when I closed on the deal, the homeowners were looking for all of the money right then.
Not so fast…
Whenever giving homeowners money, always make sure they’ve completed their end of the bargain. For example, if you promise them money, consider giving them a percentage now and the rest when they’ve moved out and left the home in a broom clean condition. (this also helps to keep them from destroying the house)
Or else they’ll pocket your money, refuse to leave, and trash your house.
For example, let’s say I promise a seller $2K and two weeks to move if they deed the house over to me. I’d give them $1K now and the rest when they’ve completely moved out.
Now- do you see why I say that many…
Homeowners Are Like Hookers!
See, when many homeowners are facing foreclosure – it’s like a pressure cooker. When they’re facing the foreclosure situation, their boiling point is steadily increasing as the foreclosure date reaches near, adding more and more pressure. As a result, they’ll make promise after promise to get some relief from this pressure. And when you step in and stop the sale, the pressure is gone- and many times once this pressure is gone, they’re quick to forget how it felt in the pressure cooker.
Now, you should be strategic about every move and have a reason for what you’re doing, protecting your investment dollars. Bait them with the carrot and only when they’ve completely honored their end of the bargain, then release all of the funds you promise to them.
Most importantly - be ethical about it and be sure to fulfill ALL of your promises.
That’s it for now,
Derek Pierce
By the way, I just finished an open letter about my business, exposing the truth about making money with preforeclosures, and what happened 6 years ago that flipped my world upside down. Read it now by clicking below:
