From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1522 topics, 14436 posts — Last Post 04/23/14, 11:39AM

BiggerPockets Exclusive PRO Area

118 topics, 844 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10968 topics, 86438 posts — Last Post 04/23/14, 12:15PM

Real Estate Success Stories

397 topics, 6188 posts — Last Post 04/23/14, 07:49AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5987 topics, 47183 posts — Last Post 04/23/14, 12:16PM


649 topics, 5856 posts — Last Post 04/23/14, 10:42AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/21/14, 03:59PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

658 topics, 6316 posts — Last Post 04/23/14, 09:50AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3704 topics, 29699 posts — Last Post 04/23/14, 11:00AM

Real Estate Guru, Book & Course Reviews and Discussions

1139 topics, 11596 posts — Last Post 04/23/14, 11:28AM

Ask About A Real Estate Company

743 topics, 7344 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies


5630 topics, 43907 posts — Last Post 04/23/14, 11:53AM

Rehabbing and House Flipping

3349 topics, 31094 posts — Last Post 04/23/14, 11:14AM

Real Estate Development & New Home Construction

554 topics, 4694 posts — Last Post 04/22/14, 09:17PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

867 topics, 6692 posts — Last Post 04/22/14, 08:22PM

Rent to Own a.k.a. Lease Purchase, Lease Options

698 topics, 4922 posts — Last Post 04/23/14, 12:17PM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3102 posts — Last Post 04/22/14, 01:39PM


1217 topics, 10595 posts — Last Post 04/23/14, 09:23AM

Short Sales

1538 topics, 13139 posts — Last Post 04/22/14, 01:38PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7243 topics, 71098 posts — Last Post 04/23/14, 12:18PM

Mobile Homes & Mobile Home Park Investing

639 topics, 5144 posts — Last Post 04/23/14, 07:57AM

Investor Basics

Starting Out

7725 topics, 60648 posts — Last Post 04/23/14, 11:42AM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4727 topics, 37314 posts — Last Post 04/23/14, 12:12PM

Real Estate Investor Marketing

1737 topics, 14144 posts — Last Post 04/23/14, 12:07PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1412 topics, 9004 posts — Last Post 04/23/14, 08:50AM

Multi-Family and Apartment Investing

1123 topics, 9363 posts — Last Post 04/23/14, 12:19PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

644 topics, 4910 posts — Last Post 04/23/14, 10:40AM

Business Basics

Goals, Business Plans & Entities

832 topics, 7571 posts — Last Post 04/23/14, 09:48AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2803 topics, 20130 posts — Last Post 04/23/14, 11:48AM

Property Insurance

310 topics, 2055 posts — Last Post 04/22/14, 07:38AM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2853 topics, 19842 posts — Last Post 04/23/14, 11:55AM

Creative Real Estate Financing

1217 topics, 8845 posts — Last Post 04/23/14, 09:39AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1217 topics, 8024 posts — Last Post 04/23/14, 08:23AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1929 posts — Last Post 04/22/14, 11:03AM


269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2012 topics, 11723 posts — Last Post 04/23/14, 12:05PM

Americans & International Real Estate

162 topics, 568 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 439 posts — Last Post 04/22/14, 09:27AM


Real Estate Marketplace

Real Estate Marketplace

15078 topics, 54101 posts — Last Post 04/23/14, 12:17PM

Real Estate Events and Happenings

167 topics, 2590 posts — Last Post 04/23/14, 09:12AM


Off Topic


2907 topics, 32441 posts — Last Post 04/23/14, 11:24AM

Housing News & Real Estate Market

920 topics, 8390 posts — Last Post 04/23/14, 11:47AM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Short Sales » Need help choosing farm area for short sales

Need help choosing farm area for short sales

15 posts by 6 users


Real Estate Investor · Naperville (Chicago), Illinois

Hi all,

I don't see very much discussion in the SS forum when it comes to selecting a few farm areas. I could use some tips or suggestions for this. I intend on retailing these homes, so won't be looking for too much rehab.

I need to find a low DOM however what is considered low in this market? Under 120 days? Under 90 days?

Since these will be retail most likely to families, I will look for lower crime and better schools. Is there such a thing as too nice of an area that could make it more difficult to short with the banks because the surrounding value?

Should I look at the median home price versus the average income? If so, what ratio should I look for?

Is there a "magic" number for arv? For example, homes that arv at 250k or 300k retail best?

Also, what % home value decline should I look for in the past year? There are areas where the average decline was 7% and areas where it was 15%. All areas saw solid growth (ie home sales) in the last 6 years and have near 10% unemployment, so there are plenty of underwater people who are very unfortunatey behind on payments.

How large should the farm area be?

Am I placing too much empasis on the above? For example, are your parameters more loose and you just do a pre-NOD search on several zip codes?

I am located in the Chicagoland area, so I can go 30-45 minutes in any direction and find almost any type of community. Perhaps that is where my hesitancy comes from. There are alot of options here.

Thank you for your suggestions!!


Real Estate Investor · Bakersfield, California

Good to meet you...

I dont buy through the MLS although I am Broker... I buy straight from the seller....

As for what to look for . Try 2/3rds of median... That is a great market..

Good luck


Small_new_logo_bgMichael Q., Yellow Letters
E-Mail: [email protected]
Telephone: (888) 968-7624
Yellow Letters - Zip Letters - Post Cards - Lists - Door Hangers - Business Cards -

Real Estate Investor · Naperville (Chicago), Illinois

Thanks for the reply Michael. I don't plan on using mls to locate properties. Mainly, I will be marketing directly to owners using 30-60-90 lists. I am also working on an agent or two to refer pre-mls properties.

I believe that being newer and working on putting together a solid system, I am over analyzing some things right now. :)

What would you suggest as a max days on market average for an area? Obviously the lower the better, however should I max out at 120 days, 90 days, etc?


Real Estate Investor · Bakersfield, California

I am not sure I understand your question... Days on market as it relates to a MLS listing or how many days from contract to cash...

If the second my average is 94

Remember once you have the right to buy you have the right to sell... So start selling as soon as youre contracted...

Small_new_logo_bgMichael Q., Yellow Letters
E-Mail: [email protected]
Telephone: (888) 968-7624
Yellow Letters - Zip Letters - Post Cards - Lists - Door Hangers - Business Cards -

Real Estate Investor · Naperville (Chicago), Illinois

Hi Mike,

Sorry about that, I should have been more clear. I am trying to isolate a couple of areas to work short sales. Because I will be retailing the properties I I want to ensure they will move fast enough.

So I am trying to find out what the max DOM average on the mls should be for a market that I choose to work.


Real Estate Investor · Bakersfield, California

if your flipping buy everything just make certain you never own it,,

Shorts are easy to flip and make money on...

Small_new_logo_bgMichael Q., Yellow Letters
E-Mail: [email protected]
Telephone: (888) 968-7624
Yellow Letters - Zip Letters - Post Cards - Lists - Door Hangers - Business Cards -

Real Estate Investor · Ocala, Florida

If and that is a big if, you are finding your deals off the MLS, you will want the properties that have been on the MLS the LEAST amount of time.

Why not either directly market to property owners in the foreclosure process, or even connect with a Realtor and let them find and bring the deals to you?

Make sure you eveluate each deal to make sure it is profitable and will be easily resold.

Wholesaler · Belleville, Illinois

Hi Danielle - On average your short sales will take 60-90 days from the day you submit your package to the bank to closing. So, I would look for the areas where the houses are selling within that time frame. (you should be marketing the property for sale as soon as you get a contract on it) you could ask for extensions to get more time to close once you get an approval from the bank, but you don't want to get stuck without a buyer after you did all that work.

I am a very strong believer in having a realtor on your team, especially in the beginning. I had my realtor figure out what areas sold the most homes, what areas sold the quickest, and what price ranges sold the most often and the fastest.

In my areas, the best prices are $100-$125 and $200-$250. $150-$175 was ok too, but not the best. Not sure why but properties in the $175-$199 range just sit on the market waaay longer than the homes on either side of that range. If you can find all that info on your own and have the time then do it yourself, but otherwise hook up with a good realtor(read that: one who understands what you are doing on these deals and can get them sold in time)

I'm finding that the higher value properties aren't responding nearly as often as the lower end when I send them DM as an investor. I'm thinking I'm going to have my realtor mail to those properties and see if i get a better response. I have a feeling that demographic would just feel more comfortable dealing with a "licensed professional" especially in such a delicate situation. Just something to think about...

Real Estate Investor · Naperville (Chicago), Illinois

Thank you for all of your answers!

James - you've got it. I do not plan on pulling properties from the mls. Too much headache in relisting / working with listing agent. I am in the process of prequalifying agents who will send me pre-mls leads. It can be a challenge to get an agent to understand this process though!

Michael - when you say never own, are you referring to wholesaling the property or just not owning any length of time, such as a back to back? Also, 94 days contract to cash is that the contract with A or C?

Dave - you're spot on, my friend. As I mentioned above, I am working on adding a realtor to my team. Until I can add one that I am comfortable with and who understands short sales and how they relate to investors, I myself have a ton of time. On top of that, it's imperative that I know my market just as well as the realtor, so I will research this on my own as well.

I absolutely love your idea of having DM sent from the agent on your team to the higher end properties. I can see where that adds comfort to the homeowner who is unfamilar with creative real estate investing. Thanks for the tip!

Everyone have a great weekend!


Real Estate Investor · Bakersfield, California

Because I grab the deed as soon as legally possible I can control the resell... So the 94 days is from my purchase contract to my closing on the resell.

I do not believe in wholesaling... I double as often as possible..

Small_new_logo_bgMichael Q., Yellow Letters
E-Mail: [email protected]
Telephone: (888) 968-7624
Yellow Letters - Zip Letters - Post Cards - Lists - Door Hangers - Business Cards -

Real Estate Investor · Naperville (Chicago), Illinois

Thanks for the clarification Michael!

Real Estate Investor · Herndon, Virginia

HI Danielle,

Can you help me understand more about how you can move farm property efficiently? I'm curious about what you guys meant by 30-60-90. Why DOM needs to be lower than 120 and how you plan to retail to families.

Thanks in advance.

Real Estate Investor · Naperville (Chicago), Illinois

Hi Eric,

I think you may have misunderstood what I was asking. I was pretty much using a wholesaling term, "farm area", meaning the area that I will mainly locate properties out of. In a sense, you are farming the area for deals. I started out in Wholesaling, so was still thinking in those terms.

30-60-90 late lists refers to lists that you can purchase on people who are late on their mortgage payments. The list encompasses those who are 30 days late, 60 days late and 90 days late. After 90 days, you can generally just go to the courthouse and find these people because a NOD (notice of demand) has been sent to them and it is now a matter of public record.

For me, because I am not buying and holding, the faster the property resells the better. So I want to make offers on homes where the area's average DOM (days on market) is low. Even 120 days is a bit long. I'm really shooting for 100 days or less.

I will retail these properties using an RE Agent. The agent is an important aspect. They take a chunk of profits, so have to be worth every penny by being motivated, agressive and knowledgeable.

Hopefully this clears things up. If you have any other questions, feel free.

Thank you,

Private Money Lender · Denver, Colorado

For a somewhat newer investor, great job in attempting to target your marketing efforts and building your system. :cool:

Real Estate Investor · Naperville (Chicago), Illinois

Thank you kindly Ted! We'll find out soon enough if my efforts pay off ;) Truth be told, all information that I have on Short Sales and really REI in general comes from this site and those (like you) who have been more than willing to answer any questions. So to anyone newer who reads this, get your education for free here at BP!!

Sign up