Short sales are all the rage right now. It seems like every week I get a new email from someone advertising their Short Sale package. Are you getting the same emails I am? Well, there is a good reason for that. Simply, short sales are hot.
When the foreclosure rate is high short sales are a great option in your RE investing.
There are three basic strategies on how to make money in the short sale world.
1- Put the property under contract, get the short sale accepted and then assign the contract out to a third party for closing.
2- Get the short sale approved then close on the house, fix it up, turn around and sell on the market.
3- Get the short sale approved, have a third buyer ready to sell to(usually another investor for a great price), close with hard money, then turn around as sell to the third party.
One thing you need to understand as a new short sale investor, these take time. Anywhere from 1-5 months depending on the bank and how motivated they are. Once you get a good number of short sales going then you can hope to close a few a month but it is not a matter of fast profit in most cases.
Also, there is a lot of work involved. Both form you and the sellers. Make this clear up front.
I hosted a great teleconference with David "The Diamond" Oswald last week. Is a a top expert in the field of Short Sales and I highly recommend getting on his free newsletter. http://www.davidoswaldonline.com/
Happy investing.
Monday, August 4, 2008
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