Short Sale Investing
Investing in short sales allows you to buy homes at below-average prices, with the promise of a quick profit or high returns, if you buy and sell correctly. Interest in this and bankruptcy investing has gone up in recent years because of the number of distressed homes in the United States today. Buyers now have more options in their tool box when it comes to properties, price range, and terms. It is a buyers market out there right now and will be for another year or more at least.
Why Invest in Short Sales?
Part of what makes this and bankruptcy investing an attractive choice is that it works for all parties involved. Buyers benefit from low housing prices, while sellers can get rid of mortgages they cannot afford and start off on a clean slate. Lenders, on the other hand, can eliminate non-performing loans without going through the whole foreclosure process, which can be much longer and more expensive than short sale investing. Again, this is something that needs to be done correctly with professionals that know what they are doing. The negotiator and realtors have to have experience in this to make it work.
What’s the Difference?
The main difference between investing and conventional real estate is that short sale offers have to be approved by the bank. Other than that, it follows more or less the same process, from listing to closing day. To get your offer approved, you must make sure it’s at least as profitable to the bank as it is to you. An experienced agent or realtor can help you draft an offer than meets lender requirements.
How do Short Sales Work?
A homeowner sells the home for less than their mortgage balance and the lender accepts the proceeds as full payment for the loan. It is usually offered as an alternative or last recourse for borrowers who do not qualify for other mortgage solutions, such as loan modification. There are many steps to this process. It really is more than offer and acceptance.
How do I get Started?
As a selfish plug for myself, I have a course that teaches people the right way to buy homes in bankruptcy and complete the approval process. This works for people wanting to buy a home or become a full time real estate investor. It is a complete course and the value is out of this world.