I am new in Real Estate investing business. Specially in short sale. I am currently working with some realtors who are daily emailing me properties out of the MLS based on certain filters I have recommended. There are many properties that are a potential shot sales candidate. I usually pick out few of them and look over them every weekend. So far I have not picked any. Some of the properties are total dump, and some are really nice.
I am confused in what to pick and what not to pick. My goal is to fix them and flip. I am aware of the the short sale process as it can take long time. I am finding properties which are listed below the market value. But are they sufficient enough to make a reasonable profit? How do I know?
E.g I recently saw a property that was listed for short sale for $50k. The comps are around 70K after ARV. My concern is that in this situation what if the repair value exceeds the comps. How can make sure that I do not go over the comps basically putting my self in negative. Maybe I can negotiate with the bank and bring the sale price down. This way I can have less risk. I also thought of taking contractors to the property so I can have a rough estimate. I guess I a m a little hesitant to move forward. Can someone please provide any tips on how to develop a strategy or how YOU do it...thanks.
YES! you sure can negotiate with the bank. You do need to know your rehab cost if you are not sure yourself, then take over you contractor or two. You also will have closing cost both sides, holding cost and unexpected cost to figure in, along with the purchase price. If this is your first buy fix and resell I would suggest taking on something with minimal work needed. Just to get your feet wet.
I have flip 1000's of homes and have been doing this for 20 years.
I would reccomend you get, if you have not this book and the rehabbing cost book
Feel free to reach out if you need any help.
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