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SFR® Certification Overview

[Music]

hello everyone my name is marion

napoleon

and i'm a senior instructor out of texas

most importantly i am here today to talk

to you about

the importance of getting your

certification or your sfr certification

if you have not and if you've already

gotten that wanting to make sure that

you brush up on your skills and get

yourself in position

to win in 2020 and beyond and one of the

things i want to

make sure you understand short sales

will always be around and they have

always been around

and foreclosures have always been around

but most importantly

with our current market condition or our

current

economic conditions so to speak we're in

the middle of a pandemic

a lot of individuals have lost their

jobs so unemployment rate is at an

all-time high

we also have a large number of

individuals impacted

by covet 19 as far as their health is

concerned

so a lot of them may have lost their

businesses as a result

of going in the hospital and unable to

work or just

simply all of the investments

all of the industries everyone has been

impacted in some way

by covet 19. so some of the things we're

going to talk about today is really

understanding

how do we work with distressed

homeowners amid a storm or omit a crisis

okay

so let's jump in let's get started and i

hope to see some of you guys in our

future sfr classes

so i'm going to share my screen with you

briefly okay

awesome so a couple of things i want to

talk with you today about is distressed

homeowners

and understanding that these distressed

homeowners they're going to need you

in the near future and one of the things

we want to make sure

you understand is all of the terminology

how to find these uh properties

and how to manage them and market them

to your advantage

so when we talk about distressed

properties

uh many people don't understand what we

mean by that but what we mean

is simply any homeowner that has found

themselves in a financial hardship or

distressed situation

um and again we'll give you a list of

those but let's say for example a

divorce

a divorce simply means that you had an

individual household that was used to

potentially two very strong incomes

but now as a result of a divorce they're

only going to have

one income which automatically puts

those individuals in a

what we call a financial hardship

because it's going to be very difficult

for them to continue

maintaining maybe that exact household

under

one particular income but also when you

look over at the

financial hardships it just simply means

there are many reasons why

you can be in that financial hardship

situation some of the ways in which

are the ways we define financial

hardships

unemployment again i spoke about the

massive number of individuals that

are uh unemployed as a result of our

current

uh pandemic so that can simply have a

tremendous impact

loss of hours so let's just say that

prior to hover you were working eight

hours a day or a lot of overtime

but what i'm hearing a lot of

individuals say is that

overtime has been pretty much uh pulled

back

and some of them their hours have been

cut in half so

now they're dealing with a very large

financial hardship

in their household underemployment is

another thing it just means

somewhat similar to loss of income but

it just means that they just can't find

the right type of employment or you know

the number of hours or whatever

relocation is one that many people don't

think about um

let's just say your job relocates you 50

miles away

that means that your current household

you know you may have a family living in

that household

so you're going to have to maintain that

mortgage and then

in the meantime you're going to have to

set up a temporary housing situation

which is rental so now you're paying

income in two different households

which can basically put you in a

financial hardship and uh potentially

qualify you

for short sale uh business values a lot

of

um small businesses and

large corporations alike have had to

close their doors

in our current environment and as a

result of that

that's creating an immediate hardship

for them because they cannot pay

their mortgage they can't pay their

bills okay and this is what we're

what we're talking about here is their

inability to pay their mortgage

illness and medical costs i know a lot

of fellow realtors and friends and

family members

that actually personally

had some type of medical situation going

on with coven

health insurance increases boy that's a

that's a whole nother

conversation that we'll say for another

day um

divorce and death of spouses so let's

start with death

um man we have had a lot

of americans lose their lives at this

current time

which means probate courts are

absolutely going crazy right now and

they will be

once everything settles i've been

dealing with probates for a very long

time

um and what i'm seeing now is a very

interesting boom on that side so that's

a

hardship that many realtors don't think

about divorce

um financial hardships i explained that

earlier

but divorces can also potentially mean a

receivership

for you as a realtor if you understand

um how it works and if you build those

relationships with the courts

but most importantly we need to make

sure we educate the consumer

that if a death or a hardship or any of

these things go on

we can help you as realtors okay

increase in mortgage payments

we have a lot of people who were under

uh temporary modifications

that were coming out of them now they've

got this massive increases

so this is another financial hardship

potentially

natural disasters um guys that's

tornadoes

floods hurricanes um pandemics

those are all different things that what

we consider acts of god are they're just

simply

things that are out of our will and are

out of our way

so these are all what we call valid

financial hardships

now what you have to be careful with is

making sure

that individuals are not trying to

create some type of strategic

um you know default where they

may go in and stop paying their

mortgage payments simply because

everyone else is taking

advantage of all of the forbearances and

coveted why not

take advantage of that one of the things

i always like to tell people is when

there's a storm

or when there's a disaster going on most

people

have a tendency to freeze or really kind

of

get paralyzed this is the time and

when you as realtors or brokers should

really step out ahead of the game

and build your business many realtors

during the

2008-9 debacle man you guys found

yourself

having to get out of real estate or

having to get full-time jobs or having

to do other things to survive

because the market shifted so quickly

now it's not my position to say whether

or not

we're going to have a tasami of

reo properties but here's what i say get

in position so that you can do whatever

the market

uh bring to us let's be in position to

deal with that okay

so some of the opportunities bpos let me

tell you

i know a lot of broker shops that make

thousands of dollars a month

simply doing bpos now what a bpo is is

simply as a market analysis

or a cma on steroids okay anywhere from

80 to 100

dollars per transaction that may not

seem like a lot of money

but guess what that does it opens the

doors to

corporate relationships so you have a

lot of companies that will need you to

do those

and once they know that you understand

pricing you understand your

market then they may reach out to you

when there

is a foreclosure in your area and they

don't have a realtor

kind of in-house they may reach out to

you and say hey we'd like for you to

handle

this real property for us because we

know you understand

pricing in your area okay now when you

look at that bpo

that's versus an appraisal that can be

anywhere from 400

and up on the residential side another

that many realtors are very unaware of

is

what we call bovs broker opinion of

values and these are commercial

um bpos or what we call

cmas on steroid but it's a small it's a

more

more customized version okay now those

pay

up to 250 to 2500 depending on the

uh how complex the um commercial

estate is or property and all of those

things versus an appraisal that can go

up to 5 000 and twenty five thousand

so in a lot of these environments they

use both but they

need you as realtors to do um the other

two

now another thing short sales let me

tell you guys something about short

sales

when i started my career in real estate

i did a lot of new construction new

construction has always been my passion

and and

everything it's just been the way to go

for me but one of the things i quickly

realized is a lot of individuals

got more house than they could truly

afford um

so one of the things i did was stayed

close to the heartbeat of that consumer

and made sure they were okay because you

know property taxes can go up

all kinds of things can happen when you

purchase a new home

but as a result of that many of them

would reach out to me

and confide in me sort of speak because

here's something i want you to

understand about short sales

your family members your friends

your co-workers and your clients

when they are fine falling on hard times

they're not

going to reach out to you immediately

because they're embarrassed

they don't want people to know so this

is a very

sensitive area in which you can make a

great you can make it a huge niche in

your business

but reach out to them how's it going

running into knee problems

how may i help you set yourself in

position to be the housing counselor

and to work with that consumer in good

times and in bad

penetrate that short sale set up your

short sale playbook

and know when to move in to help them on

short sales

another area is corporate reo listings

now this one is probably one of the

hardest areas to penetrate

but i'll talk to you guys about that we

do a great job in our sfr book

talking to you about the different asset

management companies

um but get out there and get into some

of those conferences

and all those things so that you can set

yourself in position to potentially

get a very nice reo client okay um

again probates i've just talked about

that um because any if there's deaths or

anything like that you're going to have

individuals who may have a will which

means they're going to have an executive

reach out to you

and if they don't then that means that

you're going to have to work with an

attorney on the court side but

man in that distressed property that's a

that's a big one

receiver ships we talked a little bit

about that with divorces if they're

going through

any type of divorce situation and they

can't agree

then the courts jump in and the court

the judge or the courts will decide

that that realtor is going to pretty

much handle

that property and that should be you and

then again

investment opportunities for you as

realtors or

investment opportunities to get in there

and work with investors

that might be interested in some of this

distressed properties okay

another area that i really want you to

beef up in is really educating yourself

and preparing to win when the

opportunities

you know right in front of your face so

again get that sfr certification

and get it now don't wait until you're

in the middle of the storm and then try

to go back and get it get it

now also keep up with economic uh

updates both from a national level

from a state level and then your local

markets

and this picture here i love to follow

all of the um economists i've

lawrence unis one national association

of realtors and i follow him on linkedin

i've had the opportunity

to um be um the presenter that

brings them on stage uh in our state

there's uh you know our state economist

but just

get yourself engulfed in what's going on

because what's so wonderful

right now no one really knows what's

going to happen a lot of predictions but

everyone right now

is kind of in a hurry up in weight

situation to see

what 2021 has in store because we're at

the end of the year

um where we have the holidays there's

been a presidential

election and no one forecloses

in the middle of that we also have

forbearances going on and a lot of those

have been extended

so really really keep your ears and eyes

on what's going on in your market so

that you can be ready to run when it

happens okay

um master the terminology in this

particular industry we've done a great

job again

of giving you all of the terminology but

when when we throw out things like bpo

um government sponsored entities fannie

mae freddie mac you know

no one understand what all of that means

to you as a realtor and how you can

capitalize on that to win okay

uh reo conferences i not a lot of them

out there

uh five stars one but guys i can't

stress enough to you this is the time

um to not only attend those reo

conferences but make sure attending your

state conferences

and your national association of

realtors conferences um because if

there's something

big that's going to happen i guarantee

you those guys are going to be on board

and again join any discussions about

distressed properties okay

you've got ris media coming up really

soon in january just

done did part of that take advantage

get signed up know what is going on in

your industry

another area that you can really set

yourself apart

and you can do this now is really

marketing

yourself to distressed homeowners and

marketing yourself

as a distressed uh property expert

and here's three tips of which you can

use in our current market

one of the big thing is zoom man take

advantage of not just zuma take

advantage of all of the platforms

that you can invite homeowners that are

experiencing problems

to join you for an evening of discussion

on

distressed properties okay position

yourself as the expert

uh in your area another thing reach out

to

um churches i i love the uh

any 55 and over communities but any

organization that i can reach out to

that i have the ability

to talk to employ especially with

unemployment um

and things like that i always like to

ask hey do you mind if i come in and

give them some opportunities of how they

can save their properties if they're

interested

or how we can move forward with

preventing a foreclosure

another thing video is huge guys

so i don't care if you're doing youtube

videos facebook live

um instagram now has a great um video

uh element within it linkedin also and

and twitter

you know take those and upload them to

twitter but

get in the get in the video business

because if you can get

that affiliated with your search engine

optimization and things like that

man it's going to help you get bound

when the corporate entities are looking

for reo agents so to speak

and if you are in a market where you

still have the ability to

do face-to-face live meetings take

advantage of that as well okay

but be part of the group that gets their

marketing out early

and not the ones that wait until after

it's too late

these are just kind of some examples uh

but remember

in your sfr material there's a lot of

great marketing ideas okay

but here's one a lot of the classes how

to help distressed homeowners omit a

crisis

but i do another spin of that of are you

a homeowner

in a crisis how we can help you save

your home and then pro-break and

distressed property

pros and that's what we really brag

about all of our certifications

um and designations in that area but man

sfr is by far the best and make sure

that on your linkedin profile and on

your uh facebook profile and all of your

social media profiles

that you brag about the fact that you

are sfr certified

um also one of the biggest nuggets i

want you to take away

is there are so many corporate

opportunities that many realtors are not

aware of okay

um so what you need to do is market your

sfr certification spell it out short

sell foreclosure certifications because

now if you put that into your linkedin

profiles or facebook

and make it part of your website uh all

of that you're going to now

when they google you like the gentleman

on the

right here he's got him he's he's the

only person that pulled up when i

googled

uh short sales preparing for short sales

and foreclosure listings and he does

videos little episodes both to con

mostly to the consumers okay

um another thing is really make sure

that you understand pricing and bpos and

that you can explain to them

that you have that knowledge because

again they're

always looking for residential real

estate professionals

in their subdivision or in their market

or in their city

to help them with pricing and again

make sure that you can um that you can

be found one of the things i come

out of the reo world spent six and a

half years

with a very large asset management

company working with fannie mae

va hud bank of america wells fargo

on the training side managing and

training reo agents

how to really handle these properties

but most importantly

helping when it came to recruitment and

one of the things i found are that we

found

when we had areas that we did not have

agents

in our database we googled

the areas we googled reo agents

foreclosure agents distressed

property agents all type of uh

concatenations to find us

realtors in that area and if you are not

properly setting your uh searching your

keyword searches

and making sure your website talks about

the fact that that is one of the

specialty areas that you handle

you're losing out another thing i want

you to really make sure that you're

careful with and this is why you want to

get this sfr

certification is remember

distressed property is a very

specialized area

of which you can get yourself in a lot

of trouble if you don't understand

what is going on and you are really not

doing your client any service

by not having an education and

understanding

of exactly what they're getting into

prior to moving them into that let me

give you a couple of examples

um if um for some reason you don't

realize that

if they are short let's say if the house

is worth a hundred thousand dollars

and wouldn't that be great to find a

hundred thousand dollar house

and you only sell it for twenty thousand

just give me an example

then there's that deficiency um shortage

there

they're going to want to see that taken

care of in some kind of way

so what happens in in every state is

different because

it's all state specific is there's a

strong possibility that consumer

can get a 1099 or can get a big bill

from the rs that says hey

guess what you owe this money and as

realtors it's our job to make sure that

we

look out for our clients and get a

deficiency waiver or make sure that that

client is reaching out trying to get a

deficiency waiver a lot of little bitty

things okay

another thing that i want to make sure

you are in position to do

is to find these distressed steels early

in the process

now all of us have amazing tools right

at our fingertips through our

associations one of them is rpr

rpr does a great job of telling us where

that

asset is which is what we call a

property where that asset

is in the foreclosure process so what we

want to do is we want to get it quick we

want to get it

right when they uh give them the notice

of foreclosure okay

gotta really stay close to the heartbeat

of that consumer and making sure you're

asking hey is everything okay

has this pandemic impacted you if so

have you received any letters

from the lender please share them with

me uh you also want to know

about the foreclosure notice have they

gotten the foreclosure notice

also are they already in position to do

the sale

and most importantly um has it moved in

a foreclosure now here's another thing

the reason it's important to get it

early in the process

you when it comes to short sale there's

nothing short about it

i think we all know that but the earlier

you grab

it in the process the more

likely you are to get it across the

finish line

before it hits foreclosure because the

foreclosure process does not stop for

anyone there's a couple of reasons

you know bankruptcy or something like

that but for the most part

that foreclosure or that reo process

it's going to continue

it can be halted but until that consumer

can

pretty much pay that and bring it up to

current payment that process is going to

move for on okay

another system and a lot of large um

associations provide the uh advanced

version of remind for free but remind is

another resource that is amazing because

not only can

you find where it is in the process but

you can actually go out

and look at hey show me all of the

properties

in this area that have been in default

for x number of months

so it's a great way to look at what's

going on in your

neighborhood your community or in your

city for that

matter okay mls mls's have done a great

job

of now populating a foreclosure

element to it which allows you to go in

and look and see

what's going on uh where is it in the

process

but grab them early in the process know

and understand

that if you take that short sale got to

make sure you've given yourself plenty

of time that doesn't

tell you i have been able to take a

short sale in two weeks

and if you get the right cash uh buyer

and someone that's real

ready willing and able and you know how

to communicate and

navigate through the systems and get to

the right people you can get it closed

but you got to be committed and your

clients have to be committed

we call it distressed for reason if

they're in a distressed situation

that means that their finances are

distressed that means that they

are stressed and nine times nine times

out of ten

if it's something like a divorce or

something like that trying to get all

the documentation together

is a nightmare and that's the number one

reason why short sales

fall apart it has nothing to do with the

lenders ignoring you it's all about

collecting all of the proper

documentation submitting it at one time

and following through and making sure

that you are staying on top of

everything okay so grab those deals

early

in the process so that you can win get

out if you have not already

gotten that sfr certification if you

have take it again because we've done a

rewrite of that

get ready to position yourself to win

guys in 2021 and beyond and i look

forward to seeing you in some of our sfr

classes again my name is mary napoleon

and i thank you so much for your time