Submitted by Naomi M on Tue, 10/02/2007 - 19:30.
Generate Huge Returns with Short Sales
- Get real estate up to 60% below market with a dynamic multi-pronged approach.
The housing market slump or crash, depending where you live, has created a big problem for home sellers and their mortage companies, namely, owing more against the house than the current market price. In other words, sellers are UPSIDE DOWN or OVER-LEVERAGED in their equity position.
There is no way someone will offer enough to buy the house to satisfy the loan balances. Most people will not pay more for a house than it’s market value because they can’t qualify for a loan. This cuts out all realtors, because the homeowner would have to come out of pocket to pay the agents commission.
This is where the opportunity arises for the savvy investor who knows how to negotiate a "short sale."
What is a real estate short sale?
This is the process, whereby you, the investor, will begin negotiating with the LENDER(s), not the seller, to accept a discount as full payment for the loans. So, if there is a 2nd loan for $50,000, you will approach them and negotiate a payoff for the loan amount. Let's say you offer $5,000 to satisfy the loan which the bank accepts as full payment and now you have created equity.
Now you have the option to purchase this property for $45,000 under market value.
You can do the same thing with the 1st mortgage lender and ask them to take a discount on their mortgage. It doesn't matter how many loans are on the property and what position they are in. All loans can be discounted.
Why would a bank accept such a discount?
You need to understood the lending industry. Banks do not like excess inventory and non-performing or bad loans on their books. They are in the lending business not the buying and selling business. So if they see an opportunity to give the property to someone else who wants it, they will do it for the right price.
By doing this, they are also saving money in the long run. Lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking a discount now and be finished with the headache of it all.
Lenders who are in 2nd and 3rd position are most willing to discount because they know more than likely they won't get any money anyway. If the property goes to auction and no ones bids, they don't get a dime. So they would like to receive some money rather than no money.
Why you need training in Short Sales
This guide to short sale investing will teach you how to do everything the right way to save time and avoid costly mistakes.
Learn how to negotiate with the homeowners in distress
Learn how to find these properties in pre-foreclosure
Learn the proper way to negotiate with the banks. Timing is very important and you can't waste precious time
Learn how to set up a land trust so you can take control of the property without actually owning it. When set up correctly, you will receive all benefits that come with the property
Learn how to complete all the paperwork
Learn how to build a "case" the banks can't refuse to discount their loan payoffs so you can buy the property with built-in equity.
This is THE GUIDE YOU NEED to make you a very wealthy real estate investor in the "short sale" investing niche.
Learn More | Buy Now
Thank you for reviewing how to make money with short sale investing
Short Sales Investing
Generate Huge Returns with Short Sales
- Get real estate up to 60% below market with a dynamic multi-pronged approach.
The housing market slump or crash, depending where you live, has created a big problem for home sellers and their mortage companies, namely, owing more against the house than the current market price. In other words, sellers are UPSIDE DOWN or OVER-LEVERAGED in their equity position.
There is no way someone will offer enough to buy the house to satisfy the loan balances. Most people will not pay more for a house than it’s market value because they can’t qualify for a loan. This cuts out all realtors, because the homeowner would have to come out of pocket to pay the agents commission.
This is where the opportunity arises for the savvy investor who knows how to negotiate a "short sale."
What is a real estate short sale?
This is the process, whereby you, the investor, will begin negotiating with the LENDER(s), not the seller, to accept a discount as full payment for the loans. So, if there is a 2nd loan for $50,000, you will approach them and negotiate a payoff for the loan amount. Let's say you offer $5,000 to satisfy the loan which the bank accepts as full payment and now you have created equity.
Now you have the option to purchase this property for $45,000 under market value.
You can do the same thing with the 1st mortgage lender and ask them to take a discount on their mortgage. It doesn't matter how many loans are on the property and what position they are in. All loans can be discounted.
Why would a bank accept such a discount?
You need to understood the lending industry. Banks do not like excess inventory and non-performing or bad loans on their books. They are in the lending business not the buying and selling business. So if they see an opportunity to give the property to someone else who wants it, they will do it for the right price.
By doing this, they are also saving money in the long run. Lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking a discount now and be finished with the headache of it all.
Lenders who are in 2nd and 3rd position are most willing to discount because they know more than likely they won't get any money anyway. If the property goes to auction and no ones bids, they don't get a dime. So they would like to receive some money rather than no money.
Why you need training in Short Sales
This guide to short sale investing will teach you how to do everything the right way to save time and avoid costly mistakes.
Learn how to negotiate with the homeowners in distress
Learn how to find these properties in pre-foreclosure
Learn the proper way to negotiate with the banks. Timing is very important and you can't waste precious time
Learn how to set up a land trust so you can take control of the property without actually owning it. When set up correctly, you will receive all benefits that come with the property
Learn how to complete all the paperwork
Learn how to build a "case" the banks can't refuse to discount their loan payoffs so you can buy the property with built-in equity.
This is THE GUIDE YOU NEED to make you a very wealthy real estate investor in the "short sale" investing niche.
Learn More | Buy Now
Thank you for reviewing how to make money with short sale investing
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