There are many ways to aquire properties: probate, foreclosure auctions, hire a realtor, subject-to, etc.
Some require your money, some don't. Some require your credit for a loan, some don't.
To buy short sale properties it is possible do this using none of your money and none of your own credit AND you don't even have to be a licensed real estate agent. WHOA... Did you see what I just wrote? "So I can buy and sell real estate without using my own money or credit?"
The way we make our money in a short sale is that we buy low and sell low. This is basically exactly what Costco does with a commodity like toilet paper. They buy a lot of it at a discount and are in turn able to sell it at a discount. We do the same thing with houses. We buy low and sell low.
The upside is that we have very low overhead and our only expenses are our time and notary fees when get pre-foreclosure properties. Also, you don't even have to have a real estate liscense.
The downside is that we have a 1:3 closing ratio so if a lender is unwilling to negotiate with us, we will have done a lot of work for nothing. Lately though we have developed another strategy which involves processing and listing the property with a real estate agent which increases our closing ratio.
Here in Orange County California there are unfortunately a lot of homeowners who are behind on their mortgage payments and/or owe more to the bank that what the home is currently worth. A short sale is one option for this homeowner and is a better option than foreclosure.
If you'd like to learn more about the short sales process and how to find short sales you can watch a video we've created.
Thanks!
Gabe & Geoff
OC Short Sale Guys
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