Short sales

[Terry Drake]

I have my ducks in a row and I'm ready to start putting 'we buy houses' ads out online, mail campaign, fliers, and signs. My biggest 'what if' right now is I know when I put out the I buy ads, the majority (I'm guessing around 90%+) will be people behind on their payments/short sale.

I'm confident I can work a wholesale deal, but I'm not sure on short sales.

Would I flip the short sales to my realtor? Do I make any money on that or is that a scratch my back and I scratch yours kind of a deal?

I have a buyer on my wholesale email list that said he can work short sales if I don't want to, but I don't want to seem like a total noob.

Should I try to work the short sales or pass them along for right now?

[James Ward]

Terry,

Here is my advice.

Find in your local area an investor that is performing short sales and making money. Take them to lunch and ask them about what they do. Explain that you are "new" and are able to pass along some properties are that in need of a short sale. Further explain that when you send them over, you would like to be paid for the lead upon close. If you have the desire to learn about the short sale process, ask for them to assist in the training along with you supplying them leads. If you don't want to learn, just come to some type of agreement of the amount of pay for the lead. Put together a contract between you and the other investor. Put everyting into writing.

As for an agent. You really do not need one. Some investors will tell you that agents make your life easier. Some investors will tell you they make your life a nightmare. But remember, this is your business, make the decision for yourself.

One last item. As it has been stated, you can also keep the leads and farm out the different processes. This is also a viable option. You will find investors on both sides of the fence on this subject too.

Hope this has helped,
James