Short sale real estate investing has gathered momentum over the past year due to the high number of homeowners defaulting on their mortgage payments. In such cases, you can pick up a property from the lender at a discounted rate if the homeowner is unable to meet the mortgage payments. These deals are quite different from your normal sale-purchase deals and hence you will need to build up the right contacts and sharpen your negotiation skills in order to succeed.

Lenders are motivated into selling their property before it can reach the auctioneer’s block since an auction would most probably result in the property being sold off at a very low rate. Thus, if you approach a homeowner who is in financial doldrums and wishes to exit the deal, which anyway he or she is unable to complete and impress upon him or her to sell the property, then you could pick up the property at a cheap rate. The real problem, however, is to convince the lender to part with the property at your rate.

You may have to approach the lender with your offer, which in all probability might not be initially accepted. Therefore, do not place your final offer on the table at the first instance itself. The lender could also call you again to renegotiate the rate. There could also be other potential buyers who might want the same property and chances are that they could be quoting higher rates in order to bag the deal. You will first need to calculate the market rate of the property by determining the ongoing rates in that neighborhood. You will then need to squeeze in your profit margin into the deal before placing your offer on the table.

One thing you ought to bear in mind is that most short sale homes may require some maintenance work since the homeowner may not have been in a position financially to maintain the property. This important factor should also be calculated in your purchase price or it could wipe out your profits. In some cases, the homeowner might have mortgages from two lenders and in such cases the lenders might be even more motivated since the second mortgage would anyway get wiped out if the property went to the foreclosure auction. The problem is that you will need to convince even more people to agree to your figures. This could make your deal even more challenging.

In order to lay your hands on such juicy deals, you will need an efficient network of people to inform you when homeowners have defaulted on more than 3 payments to their lender or are in the 2nd stage of the pre-foreclosure process. This is when the homeowner could be ready to sign over the deed that you will require to negotiate directly with the lender. This network could include reliable brokers, or lenders themselves. Make sure that you have a list of willing buyers to buy that property even before you buy it so that you do not end up in a quandary over a property that no one wants.

Short sale real estate investing could be the perfect boost to enter into this niche market where the profit margins are quite high. Polish up your negotiation skills and get a source to supply you with regular short sale properties to rotate your properties on a profitable basis.

Charles and Kim Petty

Clubs are a place, where you can relax, meet and interact with people and get to know whole lot of things happening around the world. Real investment clubs can prove beneficial for both new and existing investors. Real estate investment clubs let you discuss about the latest market trends and helps you to update your knowledge concerning real estate. Club is the perfect place to interact and network with other investors. Real estate is full of risk and one need to keep studying the market time and again. These clubs prove useful, when its time to update your skills regarding real estate investments. 

Real estate investment clubs are an ideal place to learn and keep you updated with all the new policies and changes in the real estate market. There are new laws enacted from time to time. You can get to know about it and understand them better, when you exchange views with other investors at real estate investments clubs. These clubs act like a forum, where you can discuss about your deals and plans of investment and take suggestions from others. The members of these clubs put forward their ideas about the new techniques and method to earn more profit in the investment business. As a new comer in the real estate business, you can upgrade your skills concerning investments and climb the ladder of success easily.

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Rather than reading books and other material to learn more of investment trades, you can chat with numerous other investors, who can throw knowledge about all the aspects of real estate investment. You may be a part time investor and not have much information regarding the real estate business and these clubs prove very helpful, where you get to know every detail through discussion with other investors. To interact with other professionals in this business helps you build contact that can be useful during some deals. You also get to know, which inspector or property manager is better to work with. 

Real estate investment clubs also help you get information on other properties and locations, where you could invest in. As the elderly professionals are present in the club, they can mentor you regarding investing in the best property and how to turn a deal into money minting machine. As an investor you will also be aware regarding various properties that are up for sale. You would also learn through other investors about the best locations of properties and how to deal with them. You will acquire the skill to strike the right deal. These clubs will also help you to work out the marketing strategies and teach you how to attract potential buyers. 

If you find it a bit difficult to run this real estate investment business alone, real estate investment clubs are the right place to find some like-minded investors, who would love to play your partner in the investment business. This will help you share your responsibilities and resources and in return you will yield a high profit. There are some well-established agents, who may want to help you start the business by lending some part of his resources to you. You may also feel the need to discuss with other investors or club members before finalizing any deal. 

Real investment clubs have numerous benefits. Being a member with one of these clubs will help you to become a successful investor. If you want to grow in the real investment business, it is advisable to join these clubs. 

Written by: KK
Date Written: 07/04/08 
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Charles and Kim Petty

The real estate market is not only as volatile, but also as profitable as the fiscal world. The real estate investing strategies are tried and tested and the result of years of careful observation. The experts in the field identify the movements in the various different markets, both the variants of the upscale and slow markets. Their past experience helps many new comers within the industry to make the right moves and survive even the slowest markets. The industry components like the buyers and sellers and the supporting group of agents and brokers benefit a lot by the application of the techniques and strategies that have evolved out of an in depth analysis of the market trends. 

Today, there is no scope for simply putting up an entry in a sales or purchasers listing. You have to be adventurous and recognize potential the moment you come in contact with it. The real estate investing strategies are designed to take every investor beyond the MLS listings. Since the core operations within this highly fluctuating industry lies in the buying and selling of properties, the strategies too revolve around the 24×7 visibility, online and offline. There is no space to sit back; the global real estate scenario calls for aggressive action. The purchases and sales have to be made within a space that enables the two transactions almost simultaneously. The support services that take care of things other than the investment are handled by experienced real estate agents and brokers. 

There are personnel who are dedicated to the study of the global real estate markets to design strategies as unique as the local scenario itself. The laws and by-laws of the real estate markets differ from one region to another and so the demands on property. A core real estate investing strategy involves understanding and capitalizing on the potential of a slow market or depressed-money market to sell quickly. The real estate market potential largely depends on factors such as the location of the built up property or land, the existent market trend, the presence and volume of competing properties and the market swings. 

In order to sell and make a profit, you have to consider careful planning, investments to spruce up the property and mentoring from experienced hands. The real estate investing strategies focus on how to effectively and professionally present the land or property so as to close the deal almost immediately. Renovating or restructuring and adopting quick fixes are all integral parts of the prior-to-sale strategies. The aim is to ensure that the properties enjoy top positions on the listings and displays the property as irresistible. 

The detailed enhancement of the exteriors and interiors like a coat of paint, addition of flowering plants and a canopy go a long way in closing a deal. There are a number of online and offline resources that enable you to access and discuss the real estate investing strategies one-on-one. These forums also enable you to interact with the experts and adapt to different market conditions. They provide you with ample of opportunity to close a profitable deal and make negotiations simple. The real estate investing strategies help you to capitalize on the power of the property market. 

Written by: GB
Date Written: 07.07.08 
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Charles and Kim Petty

The interest in buying foreclosure real estate, especially bank foreclosures, has always been high. People want to buy foreclosures, because this is one of the most profitable investments in real estate one can make. Foreclosure homes are real estate properties securing a loan that has not been paid for. Bank foreclosures are owned by the bank who has made the loan and who tries to sell the property in order to recover their money. Foreclosure investments are considered among the safest, because the prices of foreclosure real estate are usually below the market. Potential buyers of bank owned foreclosed properties deal directly with the lender when negotiating the price of the home they want to buy.

Banks that own foreclosure real estate properties sell them to recover the money they have lent to the original owners. Those interested in investing in bank foreclosures can find offers for foreclosure homes in lists of foreclosed properties made available for anyone who wants to buy foreclosures. Both real estate investors with a large portfolio and individual first-time buyers are interested in making foreclosure investments, because the properties categorized as foreclosure real estate come with lower prices than average on the real estate market. Getting significant discounts for bank foreclosures means the buyers are sure to make a profit if they sell the properties later on.

Foreclosure real estate is also on high demand with first-time buyers who look for the home of their dreams. Because they can only make a small investment in real estate, bank foreclosures are an ideal option for such buyers. Initial prices for foreclosure homes owned by the lender are usually negotiable, so those who want to buy foreclosures can close even better deals than they expect for the bank foreclosures they are interested in. When banks sell foreclosed properties, they finance a new mortgage for the new owner. With foreclosure investments, there are several contractual provisions that can be negotiated. Clever negotiation on foreclosure real estate can get the potential buyers lower interest rates or a low down payment.

Although the initial prices of certain bank foreclosures may seem higher than you expect, you should bear in mind that you can still save significantly by purchasing such properties. Prices for foreclosure homes are always below the market value of the respective properties, and this is why foreclosure investments cannot fail to bring you good profit. Moreover, the prices of foreclosed properties are negotiable, and lenders can prove fairly flexible when it comes to selling their foreclosure real estate. Being able to negotiate is essential for anyone who wants to buy foreclosures, as they can get better deals than they might expect for bank foreclosures.

By resorting to a listing service, both real estate investors and first-time individual buyers can locate attractive offers for bank foreclosures. Listings of foreclosure real estate include descriptive details about foreclosure homes, such as location, condition and number of bedrooms, and also information about prices and how to contact the banks who own the foreclosed properties. Staying up-to-date with the information included in listings of foreclosure real estate is essential for those who want to make profitable foreclosure investments. For those who want to buy foreclosures, the main advantage of accessing available lists of bank foreclosures is that they are extremely convenient and can help save a lot of time.

Bank foreclosures are definitely one of the best options for those who want to buy a home. The prices on the real estate market may scare potential buyers away, and this is why foreclosure real estate is a good investment. The prices for foreclosure homes are always below the market, and this makes them very attractive for both real estate investing companies and individual buyers. Foreclosed properties owned by banks are among the safest foreclosure investments. The whole process of locating and closing a deal for such foreclosure real estate is not complicated at all, as many people who have decided to buy foreclosures can testify.

Locating the best offers of bank foreclosures can result in closing a very good deal for any potential buyer. Foreclosure real estate is always available at bargain prices. Moreover, your ability to negotiate with owners of foreclosure homes can bring you even lower prices. This is why you should always be on the lookout for attractive foreclosed properties. Once you have decided to buy foreclosures, you should subscribe to a specialized listing service. Up-to-date lists of foreclosure real estate will certainly help you locate the best bank foreclosures and make very profitable foreclosure investments.

Amelie Mag
http://www.articlesbase.com/real-estate-articles/bank-foreclosures-at-bargain-prices-71190.html

Copyright (c) 2008 Cory Boatright

A “short sale” has certainly been a buzz word with all the foreclosures taking place in today’s real estate market. Distressed homeowners are looking for creative ways to sell their homes quickly. However many Realtors and investors are still unclear on how to get a lender to accept a short sale offer. Here is how you do it.

The following steps are to be used as guidelines on determining what to offer the lender to get a short sale acceptance. It is recommended that you consult a legal adviser before involving yourself in any real estate transactions.

All the steps you need to know:

1. Determine Fair Market Value (FMV)

2. Evaluate Sold Comps Systematically

3. Reveal the ARV (After Repair Value)

4. Figuring out the Lenders BPO

5. What is The House Type?

6. Learning the Loan Types

7. Memorizing the Percentages

8. How to Deal with Junior Lien Holders

9. In Closing

The FMV can be determined by evaluating sold, comparable properties in a similar or close proximity to the subject property. A Realtor will have access to the MLS (Multiple Listing Service) and can create a CMA (Comparative Market Analysis) for the subject property. This analysis will identify sold comparable properties with same square footage, bedrooms, baths, garage and other similar characteristics. Request the Realtors use a sold time frame within 6-12 months when pulling properties in the immediate or surrounding areas. Usually the short sale lender will not consider any sold comparables that are older than 12 months and that are further away than 2 miles from the location of the subject property.

2. Evaluate Sold Comparables Systematically

Contrary to popular and often misguided belief; you can use a formulaic system to work in your favor when determining what to offer on the short sale property. The way this works is like this

Let’s say you have eight sold comparables. You would take out the two highest comps and the two lowest ones and average the rest.

EXAMPLE:

You have a property you think is worth $145,000.

A Realtor pulls a CMA and you find eight sold comparable properties.

The MLS (Multi Listing Service) shows the following sold property values:

$159,000 $154,000 $153,000 $161,000 $148,000 $143,000 $146,000 $151,500

When you use the formulaic approach you would take the two highest sold comparables ($159,000 and $161,000). Take out the two lowest sold comparables which is ($143K and $146K). This would leave four others comps.

$154,000 $153,000 $148,000 $151,500 ———–

You would then take an average by simply adding up the sum of all the sold comparables and dividing them by the total number of properties left. In this case, that number would be four.

Total: $606,500 divided by 4 = $151,625

You can reasonably justify the house may sell for $151,625 instead of the $145,00 you originally estimated.

3. Reveal the ARV (After Repair Value)

This terminology is jargon or slang often used with real estate investors. FMV (Fair Market Value) is similar. The ARV is made up by the amount of repairs the investor thinks the property needs in order to sell quickly on the open market using FSBO (for sale by owner) techniques and not using the MLS.

It can be argued the ARV is more of a guess or suggested value derived by using sold comparables from houses that were NOT sold by a Realtor. One way to explain the difference is a Realtor will typically use a FMV (Fair Market Value) evaluation method. A real estate investor may elect to use an ARV. An appraiser can use both value methods, but generally sticks to the ones that come from off the MLS. The ARV is a less accurate and dependable value than what come off the MLS. It doesn’t hurt to know both.

(continue reading.. How to Short Sale Real Estate and Get Your Offer Approved – Part 2 of 3)

Cory Boatright