The Credible Short Sale Investor

Whether it’s fair or not, we all make judgments about people within the first few minutes of meeting them. While quick decisions about a person’s character, sophistication, and skill are often inaccurate, there’s no denying that business opportunities are easier to obtain if first impressions are positive.

How we respond to life is an amazing way to control what happens to us. You can choose how you respond to inexperience, especially your own. You can either let it bring you down or you can chalk it up to the constant change that surrounds the real estate business, and the short sale niche in particular.

In starting a new venture, you always face the issue of credibility. Nobody knows you yet. People don’t tend to work with people they don’t know, and they’re even less likely to work with you if their friends don’t know you. They need to know that you’re professional, you’re trustworthy, and you’re for real. If you have only done a few deals or perhaps none at all, how do you convince people that you have the knowledge and the ethics to be trusted with the sale of their house?

A key problem with most new short sale investors is that they don’t know who they are as a business. In other words, their promotional materials lack focus or rely on the common clichés in the industry that they’ve taken from the competition. They haven’t taken the time to develop the basic elements that everyone identifies with a successful, credible business.

So I made a list for all new short sale investors. This list is the foundation of a serious credibility kit. Make sure to do these things in the following order, because every item builds on the one before it.

1) Create a mission statement. Define your company’s core values, purpose, and goals. Write it down and tweak it until it sounds like a true reflection of how you want your business to be seen. Consider having someone else read it and give you some feedback.

2) Develop a one-page explanation describing your company that can be used in marketing. When you’re done, get out a second page and condense your first explanation into one paragraph for smaller marketing materials. Remember, no one cares that you were a boy scout, active in your church or temple, or a PTA member. This is about your business. Keep it on message.

3) Order business cards. Keep the design simple and aligned with the tone of your message. Become a member of the Better Business Bureau and make sure their logo is on your cards.

4) Memorize a one-minute elevator speech that captures the essence of the work you do. Too many investors stammer through impromptu explanations that lack cohesion and focus. If you stumble on your speech, you’re going to confuse your listener and basically give them permission to tune you out. Nail this down – this is the most important item on this list!

As you write, you may find yourself repeating a few things in each document. Rework parts of your message each time if you need to, but don’t try to eliminate repetitive concepts. Remember that each time someone sees your letter of introduction, they won’t necessarily be seeing your mission statement or hearing your elevator speech. Each element will need to be an independent first impression of you and your business.

If you have been involved with SREC coaching and events, then don’t underestimate yourself, despite your lack of experience. We all know that a proper mindset is crucial to success, so maintain an air of confidence when speaking to others about what you do.

Considering all the short sale education that you have had, keep in mind that:

• No one knows as much about the foreclosure process.

• No one knows as much about handling seller expectations.

• No one knows as much about the paperwork you need to facilitate a transaction.

• No one knows as much about managing the BPO.

• No one knows as much about the various exit strategies you can use to allow for the greatest possibility of success.

Credibility through experience will be earned later; in the meantime, you will establish credibility by how you present yourself, how you speak, and how you convey information through your company’s marketing materials.

And you do need to stay on message. I can’t say this enough.

You will also gain credibility by the honesty you show when confronted with a question you don’t know. Avoid the “fake it ‘til you make it” approach to doing business and you will differentiate yourself from the pack immediately and keep your integrity.