In todays real estate investing market the hottest transactions are those that involve no equity properties that will allow you to make money on distressed homes.
You save by purchasing bulk real estate directly from the bank before they reach the public auction. It will take the right investment strategy and the help of a certified short sale realtor.
Cashing in on short sales and pre foreclosures is not as easy as many marketers claim, it will require that you understand how homeowners who are underwater must do to qualify to keep from going into foreclosure.
Asset managers and brokers must follow the federal and state laws before they can settle for any agreement between you and the seller of the defaulted residence.
The tricky part is that the homeowners are unable to sell the properties that they are finding hard to manage due to the rise in their mortgage payments and the drop in the homes value.
Real estate investors are trying to buy these homes from the borrower at really low prices with the permission of the lenders on the mortgage loans.
Finding the right investment strategy in short sales may be hard to come by, because of so many training seminars looking to profit off the attendees who want to learn how to negotiate with the banks and mortgage holders, prepare an offer and profit from an investment group can be a challenge for novices.
The best buyers market in decades is here, some will earn great money in the current economy. The key is to find, evaluate and obtain the partnership between the investor, seller and bank.
Competition between investors makes it harder to find a profitable deal so that is why some are deciding to help homeowners get out of unaffordable mortgages while getting into one that is manageable for their finances.
State and federal foreclosure laws and regulations have made it stricter to use creative financing solutions as well as requiring the need for property inspections.
Most short sale and preforeclosure investors want to buy low and sell at a profit but may end up just fixing, rehabbing and renting out the homes instead for a monthly cash flow amount.