Where To Find The Most Profitable Short Sale Deals For Real Estate Investing

Negotiating with banks to sell you properties for less than is owed can make you big bucks. Not all short sales are potentially profitable, while some can make you lots of money. This article guides you where to get the most profitable short sale deals. Even though short sales involve negotiating with banks to get a discount on the mortgage, some short sale deals are a waste of your time.  As a real estate investor, you should aim for those deals that will make you more money. 1) Work directly with motivated sellers The best properties for real estate investing come from motivated sellers. This must happen before a bank forecloses on the properties. To qualify for a short sale, the motivated seller must be at least 2 payments behind on their mortgage. people in trouble who own real estate are the best motivated sellers. These include people going through divorce, burned landlords, people with liens, people who have inherited properties, vacant houses, expired listings etc. These people mostly need to sell their properties, even though they have not put them on the open market. 2)Make sure you have enough time In some states like Texas, when a foreclosure is files by the lender, it is usually foreclosed within 3 weeks. Some states give you several months. Ensure there is enough time before foreclosure happens. It can take a long time just to get the bank's attention. 3)Target short sales with more than one mortgage After foreclosure, the holder of a second mortgage can lose everything. They therefore typically offer bigger discounts. A second mortgage lender can accept 80-90% discount on the mortgage. If the first mortgage lender offers 10-20% discount on the first mortgage, you can make a clean profit on the deal. 4)Avoid short sales listed in the MLS  Real estate agents approach banks and list deals as short sales. Of course they are looking to get high offer; the higher the better! Usually no real estate agent will tell you the mortgage balance. And of course they will not tell you if there is one or two mortgages. This means your offers will be blind. As a real estate investor, it is in your best interest to get the mortgage balance before you can make any offer to buy a property. Sometimes you might a good deal from listed short sales, but mostly you will offer too much or too little. And of course you will waste too much time because most of your offers will be rejected anyway. Stick to motivated sellers and you will find short sales deals that will make you some good money. Learn how you can automate your real estate investing business and manage all aspects of real estate investing from a database driven website for real estate investing from http://www.realestateinvestorswebsites.net/website-types