Best Sources Of Profitable Short Sale Deals For Real Estate Investing
From the original Biznopedia business directory (2008–2014), preserved at its original address. Explore the new Biznopedia for current data on 208 million companies across 11 registries.
Best Sources Of Profitable Short Sale Deals For Real Estate Investing
| Date Added: January 21, 2011 01:19:19 AM |
| Author: shakir@resellerservers.net |
| Category: Real estate & Construction |
| Negotiating with banks to buy properties for less than the mortgage balance can make you big profits in real estate investing. Some short sales can make you money, others have little potential for profit. This article walks you through the best sources of profitable short sales. Even though all short sales involve negotiating for a discount, some of them are a pure waste of time As a real estate investor, you should aim for those deals that will make you more money. 1) Target motivated sellers directly Motivated sellers are the best source of investment properties. This is before the property gets foreclosed. To qualify for a short sale, the motivated seller must be at least 2 payments behind on their mortgage. You can find motivated sellers by targeting people who own real estate and they are in legal trouble. These include people going through divorce, burned landlords, people with liens, people who have inherited properties, vacant houses, expired listings etc. These people probably have properties they would like t sell, even though they are not listed on the market. 2) Target properties that allow you enough time In some states like Texas, when a foreclosure is files by the lender, it is usually foreclosed within 3 weeks. Other states allow several months. Make sure you have enough time to get the bank's attention before they have to foreclose on the property. It can take weeks to months just to get the bank's attention. 3) Multiple mortgages make better short sale deals The holder of a second mortgage can lose 100% of their investment in foreclosure. They are therefore more willing to negotiate than the holder of the first mortgage. This means you can get 80-90% discount on the second mortgage. If you also negotiate the first mortgage and get 10-20% discount on the first mortgage, you can make a clean profit from such short sale deals. 4) Avoid short sales listed in the MLS Real estate agents approach banks and list deals as short sales. They are open to any offer they can get, of course the higher the better for them. Almost no real estate agents will disclose the mortgage balance. And of course they will not tell you if there is one or two mortgages. This means your offers will be blind. As a real estate investor, it is in your best interest to get the mortgage balance before you can make any offer to buy a property. Sometimes you might a good deal from listed short sales, but mostly you will offer too much or too little. And of course you will waste too much time because most of your offers will be rejected anyway. You are most likely to find the best short sale deals from motivated sellers. In today's real estate market, a lot of real investors find themselves with deals they need to wholesale to other real estate investors. Whether you are buying houses selling them or wholesaling them you can close more deals using less time, money and effort through a website for wholesaling houses from http://www.realestateinvestorswebsites.net/website-types/wholesaling-houses.php |
|
|