Doing Short Sales with NO money or credit??

Question

Hi, I was wondering is there a way for someone with no money or credit to do a profitable deal with a property listed by an agent that has been approved for a short sale? Are these type deals for someone that has money? I hear the gurus talking doing foreclosures with No money or credit. Thanks!

Phil M. · Answer

Even with hard money you need SOME money..with no money you'd be better off starting in REI wholesaleing, and once your cash reserves are strong enough start investing in foreclosures..

Wayne Brooks · Answer

If you don't have POF or a strong preapproval, no competent agent would let their seller accept your offer, at any price, and no bank will even process the paper work if the buyer doesn't have it.

Nate Tanner · Answer

I worked with a colleague several years ago (pre 2008) who had a strategy for this type of investment, but it was risky and complicated.  With the changes since 2008, it may not work at all.  it involved hard money lending (very risky) and a team.  He would not buy and hold the property, but buy it at a steep discount using hard money, sell the property to cash the equity (he would try to do a dual close deal so he did not carry the property very long and have the hard money fees compile), and carry a seller financed note for passive income. Eventually, he cashed out enough equity in enough transactions that he did not need hard money and could close deals with his own working capital.

Not a strategy I would use, but perhaps it gets ideas flowing for you.