Short sales are the new investment trend. New investors should learn to short sell and diversify from this key investment method. The real estate investment market has been very successful in recent years. Everyone knows that the economy will return to high levels again. Nothing stays down forever. The number of foreclosures on the market means that more and more people have jumped on that style of investing. They are working with the banks to gain their trust and get settlements on foreclosures. New investors should review the process before foreclosures. A short sale takes place between an investor and the lending bank. The seller must be in compliance with the process. They should want help from the short sale investor. The investor will be your partner, more or less. They’re going to help you achieve something you didn’t think possible: get out of suffocating debt. When a homeowner falls behind on their mortgage, banks usually start the foreclosure process.
To prevent that process from occurring, the seller must either pay off the outstanding balance or sell the home. When they sell the house on the open market, they often expect to lose a little money, and often it doesn’t happen soon enough to appease the bank. The short sale process can prevent foreclosure from happening and save a lot of trouble for both parties involved.
In order to find short sale prospects, one must somehow market their interest to the community at large. As an investor, you are looking for people who need help and are willing to work with you to keep your home from foreclosure. Sure they will lose the house, but you are saving them time and your credit score. Where do you think would be the best places to advertise to these people in your community? Finding the marketing sweet spot can generate hundreds of leads with a single ad. While you won’t be able to serve every potential customer, you can do your research and find the legal agreements for your business. And running an investment company is a business. You are looking to build relationships with these people and turn the latest short sale into an easy profit for yourself.
The process can be a bit daunting for newcomers. Those who have investing experience should do it quickly. Like anything else, you only need to do it a few times to really feel comfortable with the process. It’s work though. Don’t expect thousands of dollars to fall into your lap.