Short Sale Investing
Investing in short sales allows you to buy homes at below-average prices, with the promise of a quick profit or high returns. Interest in short sale investing has gone up in recent months because of the volume of distressed homes in the market. Buyers now have more options at hand when it comes to properties, price range, and short sale investing terms.
Why Invest in Short Sales?
Part of what makes short sale investing an attractive choice is that it works for all parties involved. Buyers benefit from low short sale investing prices, while sellers can get rid of mortgages they cannot afford and start off on a clean slate. Lenders, on the other hand, can eliminate non-performing loans without going through the whole foreclosure process, which can be much longer and more expensive than short sale investing.
What’s the Difference?
The main difference between short sale investing and conventional real estate is that short sale offers have to be approved by the bank. Other than that, short sale investing follows more or less the same process, from listing to closing day. To get your offer approved, you must make sure it’s at least as profitable to the bank as it is to you. A short sale investing agent or realtor can help you draft an offer than meets lender requirements.
How do Short Sales Work?
In a short sale, a homeowner sells the home for less than their mortgage balance and the lender accepts the proceeds as payment for the loan. It is usually offered as an alternative or last recourse for borrowers who do not qualify for other mortgage solutions, such as loan modification. Often, the buyer snaps up the home as part of a short sale investing plan, although they can also be bought for residential purposes.
How do I get Started?
The first step in short sale investing is finding a good real estate agent. It’s important to work with people who have short sale investing experience and who know the market enough to give you real, practical advice. A short sale investing agent can help you find more potential properties, better plan out your investments, and help you negotiate each sale to ensure the results you want.