justification for the deed
How do you guys/gals justify the need for the deed when talking with a seller. I get a lot of co operation from seller until i bring that up and then its like a brick wall.
I m struggling a bit trying to figure out how to over come this.
Any suggestions?
thanks
Quote:
On 2003-03-07 01:29, illuminati wrote:
How do you guys/gals justify the need for the deed when talking with a seller. I get a lot of co operation from seller until i bring that up and then its like a brick wall.
I m struggling a bit trying to figure out how to over come this.
Any suggestions?
thanks
Well, the purpose of obtaining the deed is because you are buying the property from him. Think about it, if you pay the owner and he is still on the deed, then when the owner sells it, he gets the equity! You just lost out big time. In investing, you are in essence purchasing the property from the seller, which includes transferring the deed in your name.
How else were you planning on making money?
Tanya
Illuminati,
Truly if you must question the necessity for the deed, than truly you are not ready to get into REI as of yet.
I thank you need to share a little more clarity on your question, so that we may better help you.
[addsig]
It seems to me that you have not established enough trust if the seller is giving you this objection. It is your job to break that barrier. In any sales presentation there are 3 basic ingredients for gaining someone's trust.
1.) Commonality - Did you find anything in common with the seller? This helps lower the barrier significantly.
2.) Propriety - Did you look and present yourself as a professional? First impression is everything!
3.) Credibility - Did you provide informative information about yourself and the company? People like to know who they are dealing with.
I would suggest role playing with a friend to see if any of the above is a problem.
I forgot to ask:
What are the words you say before they start objecting?
The taking of a deed and it's implications are in direct conflict with the majority of conditional short sale approvals, especially in an FHA approved short or a VA compromised sale.
Perhaps this is a generalization, but simply because some imfomercial gurus advocate 'grabbing the deed' to control the property, it doesn't legitimize the taking. I think that it flies in the face of legitimate real estate practice.
In the majority of ligitimate real estate transactions, Contractual Agreements can effectuate an appropriate level of control. If the Seller pulls out because he/she realizes that he/she is getting screwed...
So be it. You shouldn't be screwing them in the first place.
The one way to gain the trust of a distressed Seller is to treat him/her fairly, with honesty and respect. "Grabbing the Deed" in my opinion, is tantmount to
'pulling a fast one on somebody..."
In another life, I've investigated allegations of predatory lending and "untoward" real estate practices...
other wise known as 'scams' (for the Mortgage Bankers Association of USA)
The majority of formal complaints resulted from practices known as "Deed Stealing" and "Equity Theft".
Almost all complaints came from homeowners who participated in ill-fated transactions that resulted in (unconscienable) loss of equity or loss of homeownership.
In my opinion? Have an honest and mutually respectful relationship with the Seller. Enter into a contractual agreement and effectuate the deal. No need to take the deed.
But, that's just my opinion, and based upon my experience.
I have actually asked the seller's attorney for the deed and he laughed at me. He told me he never heard anything like that in his 20 something years of practice.
The reason I want to get the deed is to have full control of the property because I have buyers lined up to purchase it but I'm afraid to give them the address. Paranoid I guess.
It's been taking a while for the attorney to draft up the contract so that is why I asked him for a deed.
Debbie
TheShortSalePro,
I do not agree with your opinion, needless to say I will not go into what I know happens to the sellers equity in a short sale or as a matter of fact the seller. If we live in a glass house let us not cast the first stone.
I would have to say I have have gotten my fair share of deeds, each and every one was a win/win situation for those involved. Many, many testimonial letters thanking me for my help.
If you stay in the area that you know then no problem, when you start stepping on my toes in an area you are apparantly lacking in the knowledge, then we will talk.
Stick with the short sales, you really do not want to go elsewhere.
John $Cash$ Locke
John, I stand by my post(s) as they represent my experience in 25 years in the real estate business. I do know a bit more than 'short sales' so I'll take your advice and stick to what I do know.
I suggest that I know a bit more than you might think I do.
The fact that you have enjoyed a mutually satisfactory relationship with folks who hand you the deed to their property does not validate it's widespread practice.
There are far too many "wannabe" investors posting questions like, "I've got the deed. Now what?"
What opened my eyes to this problem, John, was the opportunity to read hundreds of complaints filed by victims of deed stealers and equity thieves.
TheShortSalePro
I could not agree with you more there are investors in every method of investing that are less than honest in there dealings.
However, I would not lump all 'get the deed' investors into this category.
I subscribe to Lexis not because I am an Attorney, but because I stay on top of my profession.
I would like to project a 'white light' to the new investor, train him in the methods that are within the confines of honesty, fairness and are legal.
My main point was let's project a postive attitude for the new person. I see the posts everyday I got the deed 'what do I do now?', I think I have mentioned this in several posts, we cannot hold everyone's hand only address those that post and ask the question, then we can chew them out.
Glad you took my post in the 'white light' it was intended. My the force be with you, 25 years, you are a rosy cheeked kid, compared to me.
John $Cash$ Locke
i should explain my original question. In a traditional closing, the deed changes at closing when money is exchanged.
well, i took the Mr. Preforclosure seminar which teaches you offer them a contract to pay $xxx when you resale.
My problem has been getting people to accept this disconnect. Deed now, money later.
I suspect a large part is i havent his truly motivated sellers yet (still in denial).
thanks
Show seller where you are putting the deed into a revocable trust whereby the deed will stay in the trust and will revoke back to him if certain promises (stated in writing) are not carried to conclusion)
Like a "reversionary deed" arrangement.
Just an idea that may or may not work. you will need a counselor (attorney?)
TheShortSalePro,
Who was your post directed to? The advice I gave was just presentation tips. These are basic techniques top sales professionals use since it is fast and efficient . It has nothing to do with "stealing a deed".
[ Edited by adius on Date 03/18/2003 ]