“Im a real estate investor and Id like to start buying short sales. How do you suggest I start?”
***ANSWER:
I dont.
Quick background:
A short sale is when a homes loan balance is too high to allow a sale, so the bank agrees (after much negotiation and a 45-90 day process) to take less than whats owed and allow the sale to close. Why? Because theyve been convinced theyd otherwise end up foreclosing.
Having done almost 200 short sales, I can tell you from experience what you already know: banks are not in the business of giving money away.
They wont slash their loan balance to allow a home to sell way under-market. They want to see the sales prices at 95-100% of market value.
So where is your opportunity to make a buck?
Not in short sales.
