How To Locate Profitable Short Sale Deals For Real Estate Investing
Real estate investing, real estate investor website, real estate investing website, motivated seller, short sale
BODY
Negotiating with mortgage lenders to accept less than the mortgage balance for a property can make you lots of money in real estate investing. Not all short sales are potentially profitable, while some can make you lots of money.
This article points out sources of the most profitable short sale deals.
Even though short sales involve negotiating with banks to get a discount on the mortgage, some short sale deals are a waste of your time.
You should target only the profitable short sale deals as a real estate investor.
1) Target motivated sellers directly
The best properties for real estate investing come from motivated sellers.
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.
People in trouble who own real estate are the best motivated sellers. These include people going through divorce, burned landlords, people with liens, people who have inherited properties, vacant houses, expired listings etc.
These people mostly need to sell their properties, even though they have not put them on the open market.
2) Make sure you have enough time
In some states such as Texas, you only get 3 weeks from the time a foreclosure notice is filed to the time foreclosure happens. Other states allow several months.
Ensure there is enough time before foreclosure happens. It can take weeks to months just to get the bank's attention.
3) Multiple mortgages make better short sale deals
A lender for a second mortgage can lost all their investment in foreclosure. They therefore typically offer bigger discounts.
A second mortgage lender can accept 80-90% discount on the mortgage. If the first mortgage lender offers 10-20% discount on the first mortgage, you can make a clean profit on the deal.
4) Avoid short sales listed in the MLS
Real estate agents approach banks and list deals as short sales. Of course they are looking to get high offer; the higher the better!
Almost no real estate agents will disclose the mortgage balance. And of course you will never know if there is one or two mortgages.
This means you can only make blind offers. 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.
Even though you can get good deals from listed short sales, you are most likely to offer more than you normally would if you had the mortgage balance. And most of your offers will be rejected, wasting too much of your time.
You are most likely to find the best short sale deals from motivated sellers.
BODY
Negotiating with mortgage lenders to accept less than the mortgage balance for a property can make you lots of money in real estate investing. Not all short sales are potentially profitable, while some can make you lots of money.
This article points out sources of the most profitable short sale deals.
Even though short sales involve negotiating with banks to get a discount on the mortgage, some short sale deals are a waste of your time.
You should target only the profitable short sale deals as a real estate investor.
1) Target motivated sellers directly
The best properties for real estate investing come from motivated sellers.
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.
People in trouble who own real estate are the best motivated sellers. These include people going through divorce, burned landlords, people with liens, people who have inherited properties, vacant houses, expired listings etc.
These people mostly need to sell their properties, even though they have not put them on the open market.
2) Make sure you have enough time
In some states such as Texas, you only get 3 weeks from the time a foreclosure notice is filed to the time foreclosure happens. Other states allow several months.
Ensure there is enough time before foreclosure happens. It can take weeks to months just to get the bank's attention.
3) Multiple mortgages make better short sale deals
A lender for a second mortgage can lost all their investment in foreclosure. They therefore typically offer bigger discounts.
A second mortgage lender can accept 80-90% discount on the mortgage. If the first mortgage lender offers 10-20% discount on the first mortgage, you can make a clean profit on the deal.
4) Avoid short sales listed in the MLS
Real estate agents approach banks and list deals as short sales. Of course they are looking to get high offer; the higher the better!
Almost no real estate agents will disclose the mortgage balance. And of course you will never know if there is one or two mortgages.
This means you can only make blind offers. 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.
Even though you can get good deals from listed short sales, you are most likely to offer more than you normally would if you had the mortgage balance. And most of your offers will be rejected, wasting too much of your time.
You are most likely to find the best short sale deals from motivated sellers.
In order to be a successful real estate investor, you must attract motivated sellers, convince them to sell you their houses, make offers that are acceptable and close deals that make you money. Learn how you can achieve this with a real estate investor web site for buying houses from http://www.realestateinvestorswebsites.net/website-types/buying-houses.php
Comments (1)
l located a property it has asking price of $250,000 listed as short sale. How do i locate owner and exact house #, because ad only list price and street name ! Please update me ASAP on how to get required data, so i can make bid propsal/offer Thanks!
Regina Byrd, almost 7 years ago