Making money investing in todays real estate market, starts with finding pre-foreclosure properties that are going to become a short sale, this allows the buyer to get the property at a discount.
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due.The key is to get the lender to accept a short sales or discounted payoff.
Things to consider when buying a short sale, first its best to call the lender, submit a letter of authorization that includes the property address, loan reference number, name, date and agents contact information.
Submit a preliminary net sheet that estimates the closing statement, showing expected sale price, cost of sale, unpaid loan balance as well as RE commissions, most lenders will also require the homeowner to write a hardship letter inorder to be able to sell the home in a short sale.
Investors that work with a short sale can look at securing the home for resale in 6 to 8 months once the bank approves the sale.
Comparative market analysis will determine property values of similar homes in the area.
The best way to invest in real estate is to buy short sales.