subject: Mistakes Real Estate Investors Make in Short Sales [print this page] Author: Terry Wygal Author: Terry Wygal
There are various mistakes that real estate investors make when doing short sales. And if you are just starting out or looking for some ways to make money in short sales then it's time you learn and know these pitfalls to help avoid losing money in short sales. You may have dealt with short sales in the past and you've undoubtedly had some offers turned down along with a few that have been successful and profitable. You should acknowledge the fact that short sales are much like the old saying - whenever you cast off adequate stuff against the wall then something is bound to cling. First, remember what a short sale is. "A short sale is a process in which a homeowner who can't keep abreast with mortgage payments could ward off a foreclosure. In a short sale, the homeowner grants the lender to market and sell the house. The house will be sold at a fair market price. This is generally much less than the homeowner actually owes on his house, hence the bank comes up "short." A lender may sue the seller for the deficiency balance of the mortgage that wasn't paid for by the short sale after the process. A lot of investors think if they put in a short sale offer to the lender holding the mortgage, the banks will be desperate that they'll take the deal. However, if the bank doesn't jump at the offer then an average investor may just pass on to the next deal. An investor needs to plan ahead - a plan to purchase short sale properties and to convince the bank that the offer is realistic and beneficial for them. The investor must adhere to that plan. Not planning up ahead is just one of the mistakes you should watch out. Many make the mistake of buying a house because it seems to be a good deal and then trying to see how they can fit it into their plan. The second major mistake that the real estate investors make is to think it's very easy to get rich in short sale believing that they can make money in this business right away. Other mistakes include doing it single-handedly, making excess payment, leaving out the groundwork, miscalculating money flow, lowering the volume, and making wrong estimates. Individuals who are planning to rehab their house need to check if they will still draw the benefits at double the time that they had calculated. This guarantees they don't misestimate and lose money on the deal.About the Author:
Real Estate Investing Expert and SEO Expert Terry Wygal, The Quick House Buyer interviews Justin Lee in a cutting edge real estate training series dedicated to Short Sale Investing. The training is all Content and Pitch Free. To listen to his interview with Justin Lee on How to Do Short Sales register for the calls right now.
