« | Home | »

Short Sale Investing – Does It Suit You?

By Tom Dunn | August 29, 2008

So far in this series of posts, we’ve talked about birddogging real estate and wholesaling real estate. Now, I’m going to cover the art of the short sale, considering what kind of skills and experience you need to be successful. In each of these posts, I’ve asked you to consider a handful or questions:

Are you easily bored?

Are you detail oriented?

Are you mechanically inclined?

Do you work best alone or with a partner?

What experience have you had?

Do you deal well with people and their problems?

Short sales are not what I would consider investment properties for beginners, due to the temperament required to put these kinds of deals together. First, a brief definition of short sale. Short sale basically means that you identify properties and owners that are either in, or about to be in, foreclosure.

Then, you contact the lender, explain the situation, and make them an offer that is substantially less than the amount the owner owes on the property. Hence the term, “selling short.”

Short sales require a lot of creativity, tenacity, and bulldog determination. Often, you will be stonewalled by a non-responsive lender, and just getting in touch with the right person, someone who can really make a decision, seems next to impossible. Then, you need to know property values, and have excellent negotiating skills.

You also need to be able to gain the trust of the owner, so they will allow you to put a short sale offer together in the first place. Short sales aren’t for the inexperienced investor, or the faint-of-heart.

With that being said, as you progress in your investing pursuits, you may want to use your newfound experience to pursue short sales, because they can be very profitable. When you’re ready, here’s a great resource for learning all about Short Sale Real Estate Investing.

Until then hone your skills, and look for simpler opportunities.

Be Sociable, Share!

Topics: short sales | No Comments »

Comments