Buying a short sale house or a house in bankruptcy is not that difficult

invest in short sale

Investing in short sales allows you to buy homes at below-average prices, with the promise of a quick profit or high returns, if you buy and sell correctly. Interest in this investment and in bankruptcy has increased in recent years due to the number of distressed households in the United States today. Buyers now have more options in their toolbox when it comes to properties, price ranges, and terms. It’s a buyer’s market right now and will be for another year or so at least.

Why invest in short sales?

Part of what makes this investment and bankruptcy an attractive option is that it works for all parties involved. Buyers benefit from low home prices, while sellers can dump mortgages they can’t afford and start fresh. Lenders, on the other hand, can eliminate bad loans without going through the entire foreclosure process, which can be much longer and more expensive than investing in a short sale. Again, this is something that needs to be done right by professionals who know what they’re doing. The negotiator and real estate agents must have experience in this to make it work.

What is the difference?

The main difference between investment real estate and conventional real estate is that short sale offers must be approved by the bank. Other than that, it follows more or less the same process, from listing to closing day. In order for your offer to be approved, you must ensure that it is at least as profitable for the bank as it is for you. An experienced real estate broker or agent can help you write an offer that meets the lender’s requirements.

How do short sales work?

A homeowner sells the home for less than the balance on their mortgage, and the lender accepts the proceeds as payment in full on the loan. It is typically offered as an alternative or last resort for borrowers who do not qualify for other mortgage solutions, such as loan modification. There are many steps in this process. It really is more than offer and acceptance.

How do I start?

As a selfish plug to myself, I have a course that teaches people the proper way to buy houses in bankruptcy and complete the approval process. This works for people who want to buy a house or become a full-time real estate investor. It is a complete course and the value is out of this world.