BiggerPockets

I am making some of my best money right now in short sales. Problem is there is a wait typically. I started investing in short sales in Florida 6 months ago. Only about 2 months ago have I started seeing profits.

I buy to flip. Most of my homes are very cookie cutter $50-$60k range built 2004 or newer. Structurally everything is good. I do some nice landscaping, paint the inside, re-do flooring if necessary, etc. The availability of USDA financing is helping me move my homes to primary borrowers where the marginal difference between cash buyers and financing buyers is pretty favorable.

In my situation it took 2 months approximately on average to get short sale approval and another 2-3 months to get an offer and close with an end-user buyer. I am averaging 20% ROI per home.

So my opinion is if done right and you have patience, they are just as good, if not better than REO's. I have found it helpful to offer a CMA with my offer to the seller/bank. Most of the times they ignore it but I have had good feedback from some.

the amount of time always vary. I never stress it too much because the ones you think will be quick take 6 months. I've got an approval, closed and resold within 4 weeks before but of course that isn't typical.

I average 25-30k per deal.James has a boatload of deals of mine that he's negotiating and I expect the same for those as well. I know one that we're getting an approval on I'm looking at $70k profit but that isn't typical in the price I deal with.

Since I literally don't do anything other than sign contracts,and sometimes I don't even do that thanks to Docusign and my kids who know how to complete it for me, its totally worth the time it takes.

Anyone care to share their marketing tips (i.e. marketing mostly to realtors, direct sellers, or both, and using what systems)?

Also - what made you choose SS's over trustee sales and REOs?

On the few I've closed I'd say I'm looking at 6 mo start to finish I want it to be closer to 4 mo, but LOL...I want a lot of other things too, but can't say what will happen.

Profit varied. $30,000 for one and $10,000 for another and I just accepted one that should yeild a $50,000 when it closes. I can't ever say. If I had to, I'd like at least $30,000 for each one, and if we get more, I'll be very happy, if we get less, I'll be happy so long as I'm making $$ and not losing money on it.

Ah Nick, that's just one deal, not an average, just off the top of your head, nothing that causes brain damage here, LOL. Like last year I did 1,000 deals and made 90,000,000 so that's 90,000 a deal, so the average would be 90K and it took about 45 days....now that's an exageragtion I know.

The average time it takes as you did maybe when you got started and what it takes now, that would be even better, trust me here....the point will be clearer later on, but those starting out what should they expect and if they get in the grove, maybe in a partnership fo some kind, does that pay to take that route...Thanks, Later

Great post James. I'd say you're right on with the 5-9 months for someone just starting. If I remember right, I first spoke with you and Nick back in early February. Of course there's been a lot of learning, trial and error, and deals, leads and realtors that have fallen through since then.

So I'm heading into month number 6 since deciding to pursue this. I've had one file sent to James that unfortunately was just too close to the sale date, another that was a BofA that just wasn't worth the headache, and just sent a new file just this week. I was also talking with a friend last night and out of no where he told me about a guy that he works with that split with his wife and walked away from his home. I have a call scheduled with him tonight and hope to have it under contract and the file on James desk by the end of next week.

Because I work such a screwed up schedule, 12 hour shifts rotating days to nights, 7 days a week, I was able to find an awesome VA that was willing to work on commission only. She gets paid if I get paid. I get the leads together and she makes the majority of the calls. The contract that I signed this week was the result of a call she had made for me. She placed calls to 27 leads, was only able to speak to one personally, left 7 messages, and I was able to get one under contract. I wish they all could come that quickly and easily!

I'm sure things could've happened a little sooner, but at first I was waiting for the magic one to fall in my lap. I increased my efforts in getting quality leads, got the word out, hired a good VA to assist me and I'm now starting to see things falling into place.

And of course I've had dozens of calls and emails with James and Nick over the past few months. Thanks for all your help and encouragement along the way. You guys are awesome!

Kyle