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Category: Need Advice Current Grade: A Total Views: 715 Member Comments: 2 |
Posted on: 01/23/2008 Posted by: OSU_Investor Blog Points: 113 View all blogs >> |
As a REALTOR, I have completed numerous short sales by listing and selling the properties, and collecting an x% as commission. My question is how do you the investor, make money through completion of a short sale?
Are you the end buyer of the property, and buy the home from the bank at a discounted price, and quickly re-sell or is there some other tactic that I am missing? I'm not comprehending where the substantial profits are appearing from? Thanks for any advice you have.
Are you the end buyer of the property, and buy the home from the bank at a discounted price, and quickly re-sell or is there some other tactic that I am missing? I'm not comprehending where the substantial profits are appearing from? Thanks for any advice you have.
As an investor. We identify a property that is usually in pre-foreclosure and in short, offer them an amount lower than the value. I don't know any investors personally that use a Realtor in this process. Simply, because they have to pay a commission to the Realtor. I am working on a short sale currently. Here are the numbers.
Home owners were 4 months behind on payments and no help in sight.
Loan amount = $83,000
ARV( this house is almost in perfect condition) = $90,000 - $95,000
Offered amount to the bank = $55,000
Counter offer from bank was =$60,000
Final offer from me was = $58,500
Still trying to get it closed with the bank.
So you can see how the discount is built into the purchase price.
Hope this helps.
B