Short Sale Success Secrets With Foreclosures
If you're active in real estate investing, you may already realize one of the biggest issues real estate investors face: Finding Great Deals.FORECLOSURES AT A 52-YEAR HIGHWith foreclosures at a 52-year high, there are thousands of deals available on the market, if you know where to find them and how to secure them. The first challenge you'll face once you locate the property is that most of these homeowners are mortgaged to the hilt. They have no equity, and big loan payments. In fact, many actually owe more than the property is worth!Most investors will walk away from these deals because they see no obvious profit. That's because they don't know about the Short Sale.WHAT IS A SHORT SALE?The concept behind the short sale is simple: your goal as a real estate investor is to convince the bank to sell for less that is owed as payment in full.
Of course, this concept is easy – buy the foreclosure from the bank at a big discount, sell the real estate, and make money! So how does it work?SUCCESS WITH SHORT SALES CAN BE ACCOMPLISHED IN THE FOLLOWING STEPS:Step 1: Do your research.Many new real estate investors make the mistake of waiting until some subscription service sends you the list. The disadvantage is that a ton of other investors are also getting the list. If your first contact is to send a letter, forget it. Your
letter will be lost in the huge pile the homeowner is getting from all sorts of other investors, credit repair etc. 99% of the time these go directly into the trash or a big basket unread.
If you go directly to their door you've got a chance.So if you're
going to mail, be the first to act when the default notices are printed
in the local newspaper. Or be the first at your courthouse, if that's
where they're filed first. The key to finding investment-worthy properties
is to act quickly. Be disciplined and mail out the letters the very
same day—in fact take them to the post office. In this business,
the early bird really does catch the worm.Tip for Success: If you
don't have a company that publishes your notices of default, check
with local title companies or bankruptcy attorneys to see if they
offer these services.