Aug
04

Looking for “Love” in Short Sale Investing

By JK

As a short sale investor, you probably know that finding buyers is as delicate a process in a lot of cases as finding sellers. Particularly in this market, while lots of people think that they want to purchase a home via short sale, they think this largely because of a media-created perception of what the transaction is, not what the process actually entails. As a result, many short sale buyers can be just as difficult as short sale sellers to work with.

One way to get around this problem when you are looking for short sale buyers is to be very clear up front with what type of short sale buyers you are looking for. This may be partially impacted by what type of short sale properties you deal with. For example, if you frequently end up with short sales on VA loans thanks to your particular client base, then you might want to target investors since these loans usually do not require a seasoning period of any kind and can be flipped immediately, should you choose to do so. On the other hand, if you work mainly with sellers who have loans with lenders who have requirements like a seasoning period, a guarantee that you will not net more than 20% profit on the transaction or whose regulations make it necessary for you to invest in properties that require some serious rehab (all viable ways that short sale investors are making the current short sale market work for them), then you may want to look for buyers whose needs more closely match your own.

Additionally, you might want to consider courting international buyers, should your market prove attractive to this segment of the buying population. For example, in many luxury markets international buyers are snapping up deals and paying all cash for them because their currency is currently strong against the dollar and the U.S. housing market is still considered a pretty solid investment – particularly at today’s rock bottom prices. Furthermore, international buyers will not be impacted by the expiration of the tax credit or any rumors of further federal assistance forthcoming or not, since they will not qualify for it anyway.

Short sale investing is still going strong, and in some areas of the country, a quarter or more of all home sales are short sales. With this kind of volume and potential, you cannot afford to be left behind. Starting now, identify the target profiles of both your buyers and your sellers, then get those short sales moving.

P.S. If you haven’t signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

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