However, performing a successful short sale is not as simple as it looks. You must put your best negotiation skills at work so that you could persuade the bank to accept your offer. Awkward attempts to short sell will mean losing the real estate investing deal and your proposal will get rejected. In fact, there are two main components that determine your success in the short sale first, how prepared you are, and the second, how much control you have over the homeowner and the deal.
You must work out an effective game plan while you are submitting your offers. You need to be equipped with the necessary tools so that you could turn the NO of the bank into Yes. Consider the following factors in order to make your game plan strong and to ensure your success.
Judging The Profit Potentiality Of The Deal
You must be efficient enough to analyze and judge the profit potentiality of the short sale deal. Only then, will you be able to succeed in your real estate investing game plan. You must understand that not all deals are good short sale opportunities.
For example, homeowners facing foreclosure should not attempt at this deal. Before you decide to proceed, analyze the deal and review the property thoroughly. For example, how much will you need to spend for the repair of the short sale property; whether you will be able to find a potential customer for the same.
Performing The Short Sale For Mortgages
As soon as you have decided to short sale the mortgage, contact the mitigation department of the bank that handles properties in foreclosure. Try to convince the concerned authority that you want to buy the property so that you could help the homeowner with his foreclosure. Bid a relatively small amount saying that the real estate investing property is in very poor condition. Also, fax the sales contract for that amount, along with some very bad pictures of the property and an extensive list of repairs that you think is needed to bring the property up to a marketable condition. Now, wait for a few days.
It is very much likely that the bank will contact you to increase your bid to a much higher rate. Never ever accept the higher rate demanded by the bank rather increase the amount a little bit and make another offer, with more documents and pictures to support your offer. Keep trying to convince the bank that the real estate investing property is in very poor condition and you will be at a loss if you increase your offer more than what you have already offered. This way, after two or three rejections, your effort will be rewarded and the bank will accept your offer. Thus, performing a successful short sale for mortgage demands your patience and a firm strategy.
Then, performing a successful short sale does not just mean to submit an offer and wait for the bank to give you an answer. You must have a back up plan ready so that you know what should be your further course of action if you get a rejection. If you stick with the basics, it is not very difficult to turn a no deal into a moneymaking real estate investing deal.