I get asked all the time by new real estate investors if investing in hud homes is a good strategy. I will be recap in this article what I tell them….
Hud homes as an investment is not a good strategy because when new investors think about buying bank foreclosures, they first place they think of is hud homes. This creates a lot of competition for these hud homes which creates more demand for the home foreclosures.
The increased demand drives up the price and new investors tend to get ancy and will buy based on emotion instead of logic because they “just want to get their first deal”. If you pay too much for a property, you will lose your shirt on the deal. That’s why it important to not overpay for the property because you make your money on a property on the day you buy, not the day you sell.
“Sometimes the best deals we do are the deals we don’t do.”
This is why it’s important to have the right real estate investing training so you know how to spot the good deals from the bad and not overpay for a property. Your first deal can bankrupt if you don’t structure it the right way. I see this all the time in my real estate investment club. The guys that don’t take the time to invest in their education are soon out of business because they try and figure it out on their own and fail.
“Why reinvent the wheel when you can follow a system that works”
Short Sales are a great way to guarantee that you won’t overpay for properties. If you are wondering “ what is a short sale “ or are wondering what the “ definition of a short sale is“ here you go. A Short Sale is when the lender accepts less than what is owed on a mortgage on home foreclosures.
Short Sales are the best real estate investing strategy for today’s market because:
You don’t need a lot of Cash to get started
All of The deals are no money down.
We don’t give the sellers any money when we get the deed to their house.
The only thing you have to pay when you get a deal is the cost of the notary and recording fee when you record your deed. That’s a maximum of $100. Now my acquisitions manager is a notary so I don’t pay any notary fees. If you don’t put any money down on the house, you aren’t putting any money at risk.
You don’t need good credit to do short sale deals.
You don’t need to go get a mortgage when you do short sales deals. If you don’t need to use your credit, you aren’t putting your credit at risk. You fund the deal the way you structure the transaction. You fund the deal by either:
- The Buyer
- The Buyer’s mortgage
- Or a Private Money Loan
- Or Private Credit Investors
The ability to own houses without having to make monthly mortgage payments.
There are no monthly payments to make for short sale deals. The houses are either
in foreclosure or about to be in foreclosure. You don’t need to make any payments therefore you aren’t putting any money at risking making monthly payments.
Preforeclosures and Short Sales are extremely easy to find right now.
There aren’t enough investors out there to handle all of the deals in the market. That’s why I’m on a mission to equip you with all of the resources you need so you can go out there and help all of these struggling homeowners and make a lot of money while doing it.
You may here some real estate speakers say to stay away from foreclosures because there is too much competition. Well that was then and this is now. They are teaching old information because they are not currently practicing what they preach. I am actively buying and selling foreclosures in my own backyard and I know what works and what doesn’t work. And I have to tell you there is no competition for preforeclosure and short sales now because there are so many of them.
Short Sales are easy to get because it doesn’t require you to do a lot of negotiating with the seller because they know they don’t have any equity and they’re just looking for a way out. You are their solution! I love working with short sale sellers because they are the most motivated sellers out there.
Short Sales are the most profitable quick turn deals to do in residential real estate because you’re making all of your profit on the discount with the lender
One of the biggest benefits of the short sale business is that it works even better on Luxury Homes. The banks are more flexible and more negotiable on larger mortgages. Banks don’t want to take houses back and they definitely don’t want to take back Luxury homes.
It takes the same amount of work to do a deal on a luxury home than it does to do a starter home. The difference is A Luxury home pays 10 times as much profit. Its like doing 10 deals in one and when you combine the short sale strategy with luxury homes, you’ve got the golden ticket.
You See, Banks are in the money business. They’re not in the Real Estate business. They don’t want to own any properties. Their only interest is making interest on their money. Foreclosing on homes is a hassle they have to deal with because it’s a cost of doing business for them. The sooner you understand this the sooner you will realize how huge this opportunity is for you right now.
When banks lend out money – they have to keep a multiple of 5 times the amount of money they lend out in reserves. When a loan goes bad, it’s now considered a non-performing asset and that limits the amount of money they can lend out.
It costs a bank a minimum of $30,000 to foreclose on a home. They would rather take a discount on the mortgage and get that bad debt off their books so they can lend out more money.
You are the solution for them. Banks need you to help them liquidate their houses so they can get rid of their bad debt. You are doing them a great service.
You don’t need any licenses to be in the short sale business. If you already have a license, that’s good. Banks like to work with Real Estate agents and there’s no problem with having a mortgage brokers licenses either.
Short Sale investing works in any market in any area of the country. I was doing short sales in the hot market and I’m in Florida and the market was really hot in Florida. This is when the houses were selling in a matter of days. All you had to do was stick a sign in the ground and the house was sold.
You may be asking yourself.
So if the houses were selling so fast, then why did the banks take my short sales?
Well, that’s all about how you present your short sale offer to the bank. I have mastered this and this is why I can get a short sale approved in any cycle of the market.
I have mastered the way to present offers to banks so they get accepted.
And I’m doing short sales now. It just takes some adjustments depending on what part of the market cycle you’re in.
The biggest difference now is that deals are SO much easier to find and the banks are easier to negotiate with now because they have to be because they have so many foreclosures. They don’t want to take these houses back. All that’s gonna do for them is increase their non-performing assets and limit the amount of new money they can lend out. They don’t want this.
We are seeing that lenders are changing their guidelines on a daily basis, ordering BPO’s faster, and accepting our offers faster.
Select Portfolio, ASC, and Countrywide used to be our enemies because they wouldn’t open our short sale packages at all. Now they’re the fastest and easiest to deal with.
Its very common for us to be able to get an offer of 90% of the BPO accepted without any effort. This is awesome. This is the time us short sale investors have been waiting for for years.
Here is some Free million dollar advise right here:
One of the biggest factors in getting your short sale approved is influencing the BPO to come in low. When you get your BPO to come in low, you’ve got yourself a grand slam.
Do you understand you can make 2 times your current annual income on just one of these short sale deals? That’s huge. What are you gonna to do for the rest of the year?
There’s No Risk in this business.
If you don’t write checks and you don’t qualify for mortgages in your name, you’re not putting anything at risk.
There is a Huge opportunity created by the Mortgage Meltdown and current housing Conditions. It started a wave of increasing home foreclosures entering the market and it just keeps growing every day.
We are in the greatest Real Estate Buying market that you may see in your lifetime. The time is now to take advantage of it. This is the time when the majority of wealth is created.
The majority of millionaires in the world made their wealth through real estate and the last foreclosure boom in 1990 was a huge profit center for investors.
The economists are saying the foreclosure boom we are in now is going to be bigger. And this is just the tip of the iceberg. Its going to get worse over the next 2 years but if you pass on this window of opportunity it may be gone forever.
You don’t need any Experience to create an awesome business with Short Sales.
Everything I teach in my system is laid out step by step from finding the deals to cashing your checks.