tag:theforeclosureking.com,2007:/askpaulwells//3 2007-04-10T22:17:54Z Ask Paul Wells, Real Estate Investment Expert, Consultant and Trainer, your most burning question Movable Type 3.32 tag:theforeclosureking.com,2007:/askpaulwells//3.95 2007-04-10T22:16:31Z 2007-04-10T22:17:54Z

5-minute video of Paul on CNBC, talking about the growing foreclosure rates and the opportunity to help and profit from this trend.

Paul Wells ]]> tag:theforeclosureking.com,2007:/askpaulwells//3.90 2007-03-10T18:24:20Z 2007-03-10T18:26:10Z

Paul, What have you found to be the most effective way to get people in FC to actually call based on letters from the Notice of Default lists. I send out a number of letters a week but no responses come back! Michael

Paul Wells Paul, What have you found to be the most effective way to get people in FC to actually call based on letters from the Notice of Default lists. I send out a number of letters a week but no responses come back! Michael Timing is everything Michael. It is all in a sequence if indeed you want to do direct mail. I have a direct mail marketing Mania book that you could use that has different types of copy in it. But in the foreclosure arena you have got to realize that this is the path of least resistance and that is attractive to a lot of people that only want to use the easiest of methods but methods with the least results. A 1-3% response, from my experience, should be considered "fantastic" from most large direct mailers across the board that do a lot of testing....which is why direct mail can be very expensive (in terms of profit/loss) if you go the wrong direction. Direct mail is not for the faint of heart in the world of foreclosures. Why? Well when people are headed to foreclosure and about to lose their house to the foreclosure process the majority of them are not looking for solutions. Then the Notice of Default gets filed, the foreclosure process starts, the public is notified by some sort of public advertising and now everyone knows that there is a prospect. Investors that use direct mail will now start their marketing campaign and the person that is in foreclosure is about to be inundated with mailers from those investors. And many more. Also, many direct mailers pour money down a hole with bad marketing, inappropriate offers, and poor-quality list management. You're going to do it right; consequently, aim for 2-5% new customer response. PARW, for instance, consistently maintains a response rate in this range. Still, base your projections upon the lowest responses you can safely count on; then you won't get burned if you're wrong. If a mailing starts to pull 2-3% response, it¹s clearly a winner. If you achieve a 5% response from people who haven¹t dealt with you before, consider yourself a certified marketing genius and hang out your shingle as a consultant. So for the foreclosure business I think that there are many other marketing strategies that will “PULL” better than direct mail. Hope that helps. Paul tag:theforeclosureking.com,2007:/askpaulwells//3.87 2007-02-12T02:11:25Z 2007-03-10T18:24:09Z

Can I purchase the leagal forms you talked about in one of your meetings. such as: Authorization to release, Power of Attorney Warranty Deed Sales Contract Sellers Disclosure Ruby

Paul Wells http://theforeclosureking.com/home_study]]> tag:theforeclosureking.com,2007:/askpaulwells//3.86 2007-02-12T02:10:24Z 2007-02-12T02:13:57Z

Hi paul, Can you short sale rental property? Any special requirements? Rodney

Paul Wells Hi paul, Can you short sale rental property? Any special requirements? Rodney You can short sale any property as long as it is acceptable to the lender. Generally the property must be behind on payments before the lender will entertain any short sale propositions. Short sales and foreclosures these days go hand in hand and lenders are taking back way to many properties. With this in mind you as an investors should be looking for any properties, rental or occupied by homeowners, that have potential. The potential is in any property that is facing foreclosure. Paul tag:theforeclosureking.com,2007:/askpaulwells//3.85 2007-02-12T02:09:06Z 2007-02-12T02:14:14Z

Paul, What is the best way to attract private lenders to fund my deals very quickly? Greg

Paul Wells Paul, What is the best way to attract private lenders to fund my deals very quickly? The best way to approach private lenders is to spell out what is possible with your ability to find real estate transactions. What I mean is you look for foreclosed properties, vacant properties, properties that need lots of work, properties that you can CONTROL until you are able to fund the deal. But what you do not want to do is to have to look for money when you have the deal. You want to look for the deal when you have the money. But lets say that you have never done a deal and you want to have money. Remember in the foreclosure business it is about numbers. My suggestion would be that you begin to approach people with money and start conversations. These conversations should revolve around business, investments, and then real estate. Tell these potential investors that you own a company that produces investment returns by buying under valued properties secured by 1st deeds of trust. Then leave it at that. What your doing is fishing for investors and the bait is the unknown investment yield. I would also tell you to never suggest a rate of return. You would be dabbling in securities issues at that point and you do not every want to promise any rate of return. Good Luck, Paul Wells tag:theforeclosureking.com,2007:/askpaulwells//3.83 2007-01-03T04:48:43Z 2007-01-03T04:53:18Z

Paul, I've been talking to some homeowners with very little equity, but with multiple liens. To do the short sale I have told them that they need to deed me the property. Many times I am asked why they should do this. I tell them that it is easier to negotiate with the bank if I am on the deed and if sellers 'vaporize' I am not left hanging. Are there other reasons I can give for why I need the deed? These two reasons don't seem to make them feel at ease. Hal

Paul Wells Hal, Ask them why they are reluctant…They have no equity, their credit is about to get trashed with a foreclosure on it, and if you can come to an agreement with the bank then they may be able to get a little money… In my opinion people that don’t sign deeds are not that motivated….As well if you show any reluctance at all then they will get a little spooked. You can also offer some protection by signing a contract with them that says should you not be able to come to an agreement within a certain amount of time you must return the deed. As well if they won’t sign a deed get them to sign a contract and then record it. Paul ]]> tag:theforeclosureking.com,2006:/askpaulwells//3.82 2006-12-19T16:11:16Z 2006-12-19T16:13:39Z

Hi Paul, I just wanted to know what happen if the junior lien foreclose on the property. 1. Can we still offer a short sale on 2nd position? 2. Do junior survive if the property become REO? Please reply. Thank you. Sam

Paul Wells Hi Paul, I just wanted to know what happen if the junior lien foreclose on the property. 1. Can we still offer a short sale on 2nd position? 2. Do junior survive if the property become REO? Please reply. Thank you. Sam Sam, One of the great real estate investment opportunities is doing exactly what you are suggesting and that is buying junior liens at a discount. And not just junior liens. Tax liens, judgments, mechanic liens, anything that is attached to a property can be bought at a discount. The way to do this is one of 2 methods. 1-Dealing directly with the homeowner. 2-Dealing with the holder of the note. When you are dealing with the homeowner you might have a little easier time. Why? Because the homeowner has a problem that they need to solve and you can help them do that. Go and contact the homeowner and see what it is they want to accomplish. See if you can come to a meeting of the minds and help them solve their problem. If you do come to an agreement get an authorization to release loan information and contact the note holder and begin to negotiate to buy the note. Word of Warning: Do not negotiate for a note you do not have the funds to close on. #2-The second does not survive should the home revert to the lender in an reo situation. Paul tag:theforeclosureking.com,2006:/askpaulwells//3.78 2006-11-03T14:18:32Z 2006-11-03T14:24:13Z

I had special guest, Gina Clifford on the call the other night, and boy did she deliver some valuable information. She is really an expert when it comes to Short Sales. Basically, that means paying off the bank on someone's property loan, for less than what they owe on the property. This technique goes hand in hand with the Foreclosure Business and pre-foreclosures. Gina shared some very usable and valuable information about the system she's developed over the years for talking to the bank, talking to the homeowner - she's even paid less than what is owed on other pieces of property - even a car! SHe shared her secrets on my Teleseminar this week, and I've made the call replay available to you! Click Here to play the mp3 file, or right-click to save it to your computer

Paul Wells Click Here to play the mp3 file, or right-click to save it to your computer]]> tag:theforeclosureking.com,2006:/askpaulwells//3.72 2006-10-09T20:33:00Z 2006-10-09T20:36:22Z

What are the homeowner in foreclosure options and what do you say when you explain the options to them? Jonny

Paul Wells What are the homeowner in foreclosure options and what do you say when you explain the options to them? Jonny Here is one of the key strategies that you need to know and use when working with people in foreclosure and that is to be able to explain the options available to them. I do want to give you a word of warning though. PLEASE know and understand the laws of your state in regards to offering consultation and assistance to those in foreclosure. In our state of Colorado one cannot offer foreclosure consultations and act as a consultant then take title to the property. What my suggestion would be is to make it very clear that you are an investor that purchases homes in distress before you begin to share options. The options available to those facing foreclosure and how you can help them with your expertise are varied. The first option is for the homeowner to make up their missed payments. Now let’s get real because if they could do that they would have. So what are the other options available. #1-A Forbearance Agreement. This is really a payment arrangement with the lender where the homeowner is allowed to temporarily stay (stop) the foreclosure by making up the back payments as well as their regularly scheduled in a negotiated payment agreement with their lender. #2-Deed in Lieu Of Foreclosure. This is simply the lender agreeing to take the deed to the house, and the house as well, and agree to stop the foreclosure in exchange for that deed. Generally the only time a lender will agree to this solution is when there is sufficient equity in the house make financial sense for the lender to take the house back and then resell it to recoup the money owed on the property #3-A Short Sale, The homeowner in foreclosure can work with you the investor who will in conjunction with the bank will try to arrange a “SHORT SALE”. This is a solution that requires the bank to take less then what is owed on the note that is currently attached to the property. The bank will sell the note that is in foreclosure in order to liquidate the property and get it off their books. Banks are in the business of loaning money on single family property, not owning it. A short sale is a great way to accomplish this. #4-Do Nothing. Unfortunately this actually happens with some home owners. They will wait and wait and then they run out of time and lose the house to foreclosure. So there are 3 options you can explain to the homeowner and a 4th that is not good for anyone. tag:theforeclosureking.com,2006:/askpaulwells//3.71 2006-10-06T18:21:14Z 2006-10-19T16:25:34Z

Please take note! Paul's recent free teleseminars for his Bronze Insider's Members are available for download and listening on your computer or mp3 player! Please visit TheForeclosureKing.com to get the worksheets and recordings. Here's a sample: just right-click on the link to save the mp3 file to your computer, or click the link to play right now! September 20, 2006: Click Here to Listen on your computer's Media Player: Sept 20, 2006 September 27, 2006: Click Here to Listen on your computer's Media Player: Sept 27, 2006 October 4, 2006: Click Here to Listen on your computer's Media Player: Oct 4, 2006 October 18, 2006: Click Here to Listen on your computer's Media Player: Oct 18, 2006

Paul Wells TheForeclosureKing.com to get the worksheets and recordings. Here's a sample: just right-click on the link to save the mp3 file to your computer, or click the link to play right now! September 20, 2006: Click Here to Listen on your computer's Media Player: Sept 20, 2006 September 27, 2006: Click Here to Listen on your computer's Media Player: Sept 27, 2006 October 4, 2006: Click Here to Listen on your computer's Media Player: Oct 4, 2006 October 18, 2006: Click Here to Listen on your computer's Media Player: Oct 18, 2006]]> tag:theforeclosureking.com,2006:/askpaulwells//3.70 2006-10-01T21:31:14Z 2006-10-04T06:28:14Z

Paul, I was at the meeting for SAREIA in San Antonio on May 2, and really enjoyed the information you gave us. I have been buying pre-foreclosure's for about 6 months and have bought 5 properties. I was encouraged to know that most of what I have been doing is right along the lines you talked about. Clearly you’re a foreclosure expert. However, you brought up some interesting ideas that I would like to get further info on: You talked about how to go about "short selling". I know what Short Sales are but I am confused about the difference between a “short sale” and a “discount”? Thanks, Rick Edgerton

Paul Wells Paul, I was at the meeting for SAREIA in San Antonio on May 2, and really enjoyed the information you gave us. I have been buying pre-foreclosure's for about 6 months and have bought 5 properties. I was encouraged to know that most of what I have been doing is right along the lines you talked about. Clearly you’re a foreclosure expert. However, you brought up some interesting ideas that I would like to get further info on. You talked about how to go about "short selling". I know what Short Sales are but I am confused about the difference between a “short sale” and a “discount”? Thanks, Rick Edgerton Good Question Rick as there is a difference between the Short Sale and a Discount. When a homeowner is going through a foreclosure there is an opportunity for the real estate investor even if the homeowner owes what the house is worth. Lenders will accept less then what is owed(a short sale) on the property if the lender feels that it is in their best financial interest to liquidate the property quickly vs. keeping it, rehabbing it, and reselling it themselves as it sits in their REO(Real Estate Owned) inventory. Generally the only time that lenders accept short sales is when the property is in foreclosure. When a bank accepts a short sale the lender expects to get the proceeds quickly, usually within 30 days, and there will be a change of title into the investors name or entity. The investor then owns that property. A discount is different then a short sale. When a short sale is completed the title changes and the house is taken over by the investor. When a note is discounted it is generally a 2nd note or note that is junior to the 1st note. An example might be as follows: House Value: $200,000 1st note $125,000 2nd Note $ 60,000 To understand discounts you need to understand the position of the 2nd lien holder. The only way that the 2nd lender gets all of their money from a house that is in foreclosure is to pay off the 1st completely, take possession of the house, rehab the house, sell the house, and then they will get what is left of the note value. Lenders are in the business of loaning money, not owning single family homes. So instead of having to pay off the 1st and then owning the home the lender that owns the 2nd will sell their interest, the 2nd note, at a DISCOUNT. I have bought 2nd notes for as little as .15 cents on the dollar. The investor then has the 2nd lien on the property of $60,000. This position gives the note holder, the investor, the legal right to protect their position thus giving them the right to buy the first as the foreclosure process proceeds. Buying discounted notes can be extremely lucrative and is a fantastic strategy to purchase homes that are in foreclosure. tag:theforeclosureking.com,2006:/askpaulwells//3.68 2006-07-22T00:36:45Z 2006-10-04T06:07:10Z

I have just picked up a client that has a new house (no repairs needed) 3years old. they have 2 mortgages, both with the same mortgage company 1st - $119,000 - ARM @ 13.75 tops out at over 16% 2nd...

Paul Wells http://theforeclosureking.com I have just picked up a client that has a new house (no repairs needed) 3years old. they have 2 mortgages, both with the same mortgage company 1st - $119,000 - ARM @ 13.75 tops out at over 16% 2nd - $ 21,000 - 9% fixed what is the best aproach with this company to negoticate a short with the 2nd, and possibly the 1st, without tipping them off that they have both? The problem with having a client that has 2 mortgages with the same company is that the company does not care much about the 2nd. The first is their focus. I would just work the 1st and if they say what about the 2nd just tell them all you are interested in is the 1st the the 2nd is not your issue. Then see if you can short the 1st dedending on the value of the property. Paul Wells tag:theforeclosureking.com,2006:/askpaulwells//3.67 2006-07-20T00:28:33Z 2006-10-04T06:07:10Z

When I locate a house and the sales price is 1/2 of the market, How do I approach the seller?? When I use an agent I would look up the cma and show the seller what they could start asking....

Paul Wells http://theforeclosureking.com When I locate a house and the sales price is 1/2 of the market, How do I approach the seller?? When I use an agent I would look up the cma and show the seller what they could start asking. As quickly as possible in this instance. 50% LTV is one you want to be camping in their front yard until you get a deal. Just go and talk to them and help then solve their problem. Ask lots of questions to find out what it is that they want to do, then do it. Why do you want to educate the seller as to what the property is worth. I want the house and if they want to sell it, BUY IT!! tag:theforeclosureking.com,2006:/askpaulwells//3.66 2006-07-18T00:19:37Z 2006-10-04T06:07:10Z

I would like to get started in real estate investing and would like to do it with foreclosure homes. Can I start a foreclosure company, how do I do it or is there even any such animal? Thank you....

Paul Wells http://theforeclosureking.com I would like to get started in real estate investing and would like to do it with foreclosure homes. Can I start a foreclosure company, how do I do it or is there even any such animal? Thank you. Wow, that is a huge question with so many answers. Let me see if I can give you some basics. I am not sure what you exactly mean by a foreclosure company. But let me try to give you some foreclosure basics 1st. You must get training beyond just courses. What I am saying is that you need to get good quick and be complete in your business. 2nd. You need to go get some deals as fast as possible. Deals will lead you to experience. Experience will lead you to expertise and expertise will lead you to success. 3rd. You must focus on growing your business in a way that a business is grown. Paul Wells tag:theforeclosureking.com,2006:/askpaulwells//3.65 2006-07-18T00:14:27Z 2006-10-04T06:07:10Z

Hi Paul. I was at one of your workshops in Phoenix AZ at the AZREIA office. I remember you giving out portions of your educational material at the workshop. What most interested me was the CD's with scripted dialog on...

Paul Wells http://theforeclosureking.com Hi Paul. I was at one of your workshops in Phoenix AZ at the AZREIA office. I remember you giving out portions of your educational material at the workshop. What most interested me was the CD's with scripted dialog on what to say to the owners when you're inside the house. Can you tell me how to get that? You can find a number of tools to use for your investing on www.theforeclosureking.com