Real Estate Investment Short Sale

I was on my way home the other day after I’d just met with a seller when I receive another phone call from a seller in the same situation. They had a property that they were extremely motivated to get rid of due to tenants. And something I’m finding more, and more is that there’s a lot of people that couldn’t get out of their houses, they couldn’t sell them, so now they’ve rented them out. And as a result, you’ve seen a huge increase in the amount of landlords.

Now, these aren’t landlords that are in the business. They’re people that may have two houses that couldn’t afford to make the second house payment, so they decided to rent the other one out. And, that was the only solution that seemed feasible.

And now, with the downturn in the market and with lack of management of tenants, many of these owners are disgusted because now they’re upside down in a property that needs enormous amount of work.

Well now, you’re seeing a flood of these people literally begging for someone to buy their house. See, they’re sick and tire of the rental game and are literally begging to get out from under these houses that they rented them out two, three, four years ago.

Many of these homeowners are now facing foreclosure with nowhere to turn, while some have just witnessed their tenants completely destroy their homes. And now, the house has become more than they can handle. And after all, these former homeowner - landlords aren’t in the management side of the business. Remember, they just wanted out from under their home.

Well, here some good news…

You can still make money easily with these types of deals even though they appear to have no equity.

These types of deals are a prime candidate for a short sale.

A short sale is when you make an offer to the bank for less than what is owed against the property. And since, foreclosures are at an all time high, banks are more willing than ever to accept these discounts. Short sales can be a lengthy process, so be sure to educate the seller before you ever submit an offer to a bank. You’ll call the bank and speak to the person handling the file and ask for a short sale package. They’ll send this package out for you and your seller to fill out.

Be sure to get all the info they requested and send back the short sale package as soon as possible with your offer letter and let the negotiations begin.