In this video, we delve into the inspiring journey of someone who went from being a tire salesman to becoming a highly skilled real estate professional specializing in short sales.
Discover the challenges they faced, the strategies they employed, and the lessons they learned along the way.
From navigating the intricacies of the real estate market to mastering the art of short sales, this individual’s story will leave you motivated and inspired to pursue your own dreams.
Whether you’re an aspiring real estate agent or simply intrigued by personal growth stories, this video is a must-watch.
Don’t miss out on this incredible opportunity to witness a true transformation unfold.
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Get ready to be inspired and empowered on this journey from tire salesman to real estate pro, mastering the art of short sales.
Transcript:
Chris Bounds
How’d you end up finding your way to specialize in, in short sales. And maybe if you if you want to run into that backing up a little bit further hedge again real estate to begin with?
Bob Vieira 00:12
Yeah, so when I graduated college, I was selling tires, I was a corporate tire salesman, I was probably the Yeah, I was miserable everyday waking up, I knew I wanted to be an entrepreneur, I was always interested in real estate, I was probably the worst employee on the face of the planet,
Chris Bounds 00:34
I was tired of being the Michelin Man,
Bob Vieira 00:36
I just, I just can’t do it. I was bad at it too, because my heart wasn’t in it. You know, I’m just an entrepreneur at heart. So I got my real estate license while I was selling tires. And then the second I passed the exam, I just quit. I jumped cold turkey into real estate, just as an agent not necessary. Like I always knew I wanted to be an investor and get involved on the investment side. But just to start, I was an agent. You know, like any new agent, I was running around chicken with my head cut off just trying to start my business.
And I started randomly landing on short sale listings, I had no idea how it was just random. So I learned how to do it, Chris, just through trial and error. And then I realized, this is a huge pain point. I need a niche anyway, because I didn’t have like an actual niche that I was noted for. So it was kind of just a perfect storm. You know, I specialize at a local level and short sales 2019 rolls around, and I rolled it out nationally. Yeah.
Chris Bounds 01:31
There’s the same riches in the niches, the middle is crowded. So the if you can find that pain point, it’s almost this cross section is high value, but also high pain. So it’s not that people won’t go there. It’s just, they don’t like to and you’re gonna find fewer folks there. So if you can absolutely own it, and be an expert in it, which you have. It creates a huge business opportunity. And and yeah, you’ve done well with that.
Bob Vieira 02:04
Yeah, yeah, for sure. riches in the niches. I love it.
Chris Bounds 02:07
So from homeowners and agents that are representing homeowners, what should they consider before ever even going down the short sale process?
Bob Vieira 02:18
That’s a great question. So you need to consider what is. So what I like to say to sellers, I love to ask the question, any perfect scenario? What is the end result? If you could have your way? And if the answer to that question is I’m just out from under this mortgage, I don’t care about making money, I could just move on with my life and avoid foreclosure. If that’s the answer, then a short sale is for you. If that’s not the answer, for example, maybe you don’t really care that much. If you have a foreclosure, maybe your main motivation is to make a couple bucks. If that’s the case, I’d say don’t do a short sale yet. And
Chris Bounds 03:01
the first example you gave that was the situation with my client. Like he was just like, get me out of this, like, get out? Yeah, yeah, not have a bag, I don’t care what else happens after that, like, just give me out? And you’re able to do that. So in those kinds of situations where you do get them out? And obviously it’s below what they owed, does that impact their credit going forward? Or is there something that’s going to?
Chris Bounds 03:29
Do they still owe that balance? So say in the example you had before there was a $50 $50,000 gap? Do they have to pay that back? Is that on their credit as a loss? How does it work?
Bob Vieira 03:42
So what you’re referring to is a deficiency just to get back and go back to my example I gave before to paint the picture, I owe 550,000, I sell my house for 500 via short sale to $50,000 balance is a deficiency in a short sale, if the short sale is done correctly, in that short sale approval letter, you need to the first thing you need to do the first thing I train my staff to do, we open it up, and we look for the lender to put in writing that they’re waiving their right to collect the deficiency, which again is that 50k In that example, as long as that’s in writing, you are not on the hook for that $50,000.
Chris Bounds 04:22
So if that is not in writing, then by by default, they can go after you for that extra 50. It’s not that they would, but then it’d be safe to assume that they’re probably going to
Bob Vieira 04:35
they can absolutely come and sue you for that deficiency that balance.
Chris Bounds 04:41
And worst case, you don’t really record credit for quite a long time.
Bob Vieira 04:46
So that’s another question. A credit is a little bit different. There’s a lot of people that want to convince people to do short sales and they’ll say save your credit. Do a short sale. I see this all the time. It’s just not true. There’s no perfect situation where you could do a short sale and save your credit. A short sale does have a negative effect on your credit. Okay, so that shows up on there. Absolutely. But the biggest benefit is the way it’s recorded.
So obviously, if you foreclose, it’s going to say on your credit report is going to show as a foreclosure. In a short sale, if you complete a short sale, it shows as debt settled for less than amount owed. What that does, Chris, let’s say I do a short sale a year or two later, I want to go buy another house. So then my new bank pulls my credit history, that’s going to send a message to my new creditor that Hey, Bob, you know, slipped up fell on a short term hardship a year or two ago, but he made it right.
He figured out a way to get his old lender as much money as possible. And then he didn’t just let the property foreclose. So it just makes you look like a much better borrower. Having done a short sale compared to a foreclosure. Okay,
Chris Bounds 05:55
and what about the other situation like the the not so good way it shows up on your credit.
Bob Vieira 06:01
Um, so it’s gonna deduct points from you, you know, there’s no situation where you do a short sale and it doesn’t ding your credit. So if you have a perfect 800 credit score, you know, it’s, you know, it’s gonna bring it down a couple of 100 points. Absolutely. Yeah.
Chris Bounds 06:14
I mean, being delinquent on your mortgage alone, doing it, but absolutely, I imagine it’s far less impactful than a foreclosure. Great!