Short Sale Investing In Denver

Where is the money at today in Real Estate? SHORT SALES! But if you think it's easy to negotiate and purchase a short sale, you would be in for a slap across the face and a sweet surprise. And if your think it's easy to find someone to negotiate a short sale for you and get your offer accepted, then come here, let me slap you myself.

Now, I don't want to have to slap you, I just want every investor out there to understand the short sale process will take time to learn and a whole bunch of patience. But hey, are you willing to be patient for a $30,000 plus profit potential? I sure hope so. I know I am. I've taken them time to study short sales from the best, learning from current investors that are doing 5+ short sale transactions per month, each with a net of at least $20k profit. So I took the time to learn from these investors, and it's made the world of difference in getting short sales done. I want to share some of what I've learned with you.

So let's start from the beginning...

What is a short sale? It is a property that the bank or mortgage lender has agreed to take a discount, or accept less than what is owed, on that property. Why would a bank do this? Well if the homeowners have a loan of their property for $200,000, but due to the current market conditions, that property's value is only worth $150,000, and that's the most it would sell for, the bank could accept a discount to allow the sale of that property. There are tons of these deals out there. And don't worry if you don't completely understand just yet.

Finding the short sale lead:
There are so many people who need our help out there, however getting them to talk with us and allowing us to help them is not easy. With negative news in the media, and increasing homeowner hesitancy, convincing them we are the good guys and really trying to help them is difficult. But let's review why we really want to help them... The biggest reason why I want to negotiate a short sale and purchase their property is to help them avoid a foreclosure on their record. That is MAIN REASON 1! A foreclosure on their record will cripple their financial future for at least 7-10 years. A foreclosure is worse than a bankruptcy on that homeowners credit. If we are able to get a short sale done, they can purchase another home in 12-24 months after some credit clean up. With a foreclosure on their record, they will be renters for 7+ years if they're fortunate. We want to help our homeowner return their life to some sense of normalcy as soon as possible. It's our job to help them understand this. There are other reasons but this is our main concern.

To find the homeowner who needs and wants our help, you must be creative. A road sign that says something close to "Avoid Foreclosure, I Will Buy Your House" or "I Will Buy Your House, I Will Make Your Payments." Attach a phone number with a recorded voicemail service to the road sign and you have yourself a lead source working 24/7 for you. A few other creative ideas... A small hand written note with the same saying on it or door knocking and meeting the homeowner in person. Where do we find the list of homes facing foreclosure? Just contact a local title company, build a rapport with them, and you will start to receive the emailed list if you ask them. If you're internet savvy you can market for short sale leads online, collecting the homeowners information on a landing page. Have no clue what a landing page is, CHECK OUT THIS LANDING PAGE!

Okay, I've Found Them, Now What?:
We must determine if this is a property we want to buy? If the property has equity, it's a great candidate for a subject-to transaction. Subject-to is buying a property while leaving the existing mortgage in place. There are plenty of reasons for using this no credit strategy. For more information on subject-to purchasing, google the subject, or find a local training at ForclosureTrainee.com.
But if the property DOES NOT have equity, then a short sale must be negotiated.

Look for my next article that will take you through the steps of negotiating a short sale, and remember DON'T EVER EVER EVER GIVE UP!

P.S. if you can't wait til the next article, you can request a seat at a live business ownership and foreclosure training near you at More Short Sale Training Here!