Yesterday I discussed how short sales can be profitable if you are able to play the waiting game with the banks. Many investors use real estate comps to help determine which properties are worth that wait. Here are a few more tips to keep in mind when considering stepping into the short sale arena:
Check out the neighborhood comps. Your InvestorCompsOnline account can help you with this. You will be able to submit an appropriate offer if you know what other homes in the area are selling for.
Keep in mind that homes are sold “as is”. While banks need to repair and clean up homes they are selling in foreclosure, a short sale isn’t held to those same rules. With Short Sales, banks make the rules. It’s up to the bank as to what they will accept as a down payment, whether an offer is good enough for them, etc. There are no “rules” set in place for short sales. It really is up to the bank’s discretion. This is where your patience comes into play as you wait for the banks to process the sale.
Keeping these tips in mind will allow you to navigate the sea of short sales safely, all while making wise investments and money at the same time!
When you are researching real estate comps and considering property deals, you may want to consider buying a short sale. Short sales are great for the investor that has patience to hold on until the bank goes through the decision process.
A few things to consider when looking at short sale properties: 
First off, don’t let the name fool you. Short sales are typically anything but “short”. They can take several months to finalize. Because of that, you may want to continue looking at other properties while the short sale process is underway.
Also, remember that while the buyer and seller determine the sale price, the bank makes the final decision on whether the price is acceptable or not. So, even if you and the seller agree on a price, the bank can come back and say “no”.
Be sure to submit a realistic offer. Unlike traditional sales, submitting a low offer is not recommended. You can pretty much expect that a bank will reject a low offer right away. In fact, even a reasonable offer may not be accepted right away. By submitting an offer for what you legitimately want to pay for a home is the best thing to do on a short sale.
Check out my post tomorrow where I want to give you a few more tips on purchasing a short sale. Remember the investor that decides to be patient can make short sales a very profitable avenue!
Staying focused on real estate comps will help you as an investor make many wise business decisions. Using your InvestorCompsOnline account to research those properties makes for an even wiser use of your time. There are quite a few positive aspects of real estate investing. I wanted to go over one of them today to help us stay focused on our financial goals.
One of the biggest attractions of real estate investment lies in its volume of potential profits. Property purchased at a lower rate than the current market price provides a large scope of profits. Slight renovations can make the property look more appealing and more lucrative as well.
Remember, taking advantage of doing these small things can up your end profit considerably.
Investing in bulk REO or bank owned properties has become one of the leading ways to make money in the current market. Pulling real estate comps on these properties is always a win-win senario. This is because of the depressed prices and below-value properties on the market, as a result of a near-historic rate of foreclosures across the nation, maybe hiding a diamond in the rough.
The main advantage of finding bulk REO properties is buying homes at a discount. Here’s the thing guys, in a perfect world, a bank will prefer to sell the home at its assessed value, i.e. how much it is worth in a stable market. In a depressed market – or a buyer’s market – home prices are usually below the assessed value. Your InvestorCompsOnline access will put you in position to make wise decisions regarding value and buying these properties.
Making sure real estate comps are current and have good information should be two of real estate investors top priorities. In that same vein making sure you get your name out there and your business recognized is priority #1 to staying in business! Come to the MyMark Social Media Marketing Conference and learn all the strategies the SMO EXPERTS are using to stay ahead in their fields! It’s today AND tomorrow (Saturday)!!
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