I guess we are seeing about 5 – 15 “unusual” looking REOs a week that upon closer
investigation are the residue of bulk REO (bank-owned) property sales. Bulk REO sales are
“bundled” REOs from many locations around the country that are sold in one chunk – often
referred to as a “Tape” because of the format they are presented in to a perspective buyer.

Driving for Dollars Doesn’t Work

I am always amazed when someone tells me that a specific type of prospecting
does not work. What happened last week was a guy walked into our office and
asked to talk to us. He said he had been a mentor student of a local guru and
just got a deal – but he wasn’t sure what to do.

What is the Mysterious “GAP” in Title Insurance?

The question, “What is the GAP?” is seldom asked because it is not understood by investors and,
frankly, many don’t care. It may be the old proverb, “What you don’t know can’t hurt you” as the skier
went sailing over a 2,000 foot cliff. However, the GAP is a very important part of every transaction if
you are a buyer and want to make sure you get “good title” to your purchase.

I Told You Open Houses Don’t Work!

I guess I have heard, “Open houses don’t work” a hundred times from realtors® and
homeowners who have asked their listing agent to do an open house. At one time a long time
ago I actually saw some statistical data that was developed by a consulting firm to a realtors®
organization that clearly showed open houses account for less than ½ of 1% of all sales.

In the following example I will discuss what I call a defining moment for a student. Defining
moments in life are usually life–changing events that irrevocably shape your future or betray
your past. In this case, the student’s decision actually defined for me the psychology of the
individual.

Probates are a wonderful source of deals. Often the seller lives out-of-area and
wants to get cash out of the estate as quickly as possible. Because probates are
shown in the public record, they are fair game for all sorts of people – real estate
investors, attorneys, creditors, other family members and people who believe
they are heirs, and also scam artists.

The Underbelly of POFs, Escrow Letters and Mortgage Brokers

Recently, I was talking to one member of a local wholesale group about how he was
doing deals. He is a nice guy but doesn’t do very many deals and is virtually penniless.
Consequently, my next question was how he was making offers without Proof of Funds
(POFs). He corrected me and said he did have a POF for over $100,000. I
congratulated him on his finally saving some money and he said I was wrong again!

About once a week we get a comment about land trusts from someone who has
no clue what a land trust is and occasionally their comments are so strange we
literally break out in laughter. One of the most recent comments was, “I looked in
Sunbiz.org and couldn’t find your land trust so it must be illegal.” The more
common comment is, “I need to see the incorporation papers for the land trust.”

I don’t watch very much TV. Seems it has never given me much in return for the time I spent
engrossed in it. What has it done for you? Ever made a lot of money watching soaps or
infomercials? I did walk by the other day and looked at an episode of Antiques Road Show
entitled something like “One Man’s Trash is Another Man’s Treasure”. They reviewed antiques
and treasures ranging in value up to $50,000 that had been thrown out by their owners. I admit
this sounds like a once in a lifetime possibility – or is it? It may be right at your fingertips.

Is This Underhanded and Misleading – or Just Good Salesmanship?

This is the second part of a two-part series for the Weekly Insight for 2-2-2011