Can someone point me in the right direction....
...as to how to make 40-50k a deal per short sale in California?
I understand that I need buyers. Right now I have 2-3 buyers. I also have 2 uncles that are going to let their homes foreclose because they are upside-down, so I might ask them to list their homes with this lady for two reasons: 1) so that we could try to find a buyer for them and make some money. 2) it would be beneficial for my uncle's to try and get a short-sale completed vs. a foreclosure.
I talked to a lady the other day who says she just made 85k on one deal...and she says she averages 50k profit per deal. She basically negotiates the lowest price with the lender, and has a buyer in place who will pay close to market value. So she basically buys at 75% and sells at 90%. She told me that she will pay me 25% of her profit if I help her sell her listings. I think 50-50 would be a lot more fair. She has more leverage because she has the cash to buy from the bank at 75%. However, finding the buyer is just as important. She currently has 42 short-sale listings.
Here's my questions:
1) She has this amount of listings so that she has a wider inventory to offer her buyer's list...correct?
2) What will I need to go about doing what she does? I don't have cash to purchase these houses at 75%, but have family members who might have the money. What are the things I need to do in order to get the lowest approval from the lender? She said she took classes to learn these things, but I'm sure I can find them on one of these forums.
3) Is the process of doing this by myself complicated? Filling out contracts, negotiating with the bank, etc., etc. Am I better off letting her handle all that work, and splitting profits (if she agrees to 50%)?
I just need to learn the whole process of flipping short sales for profit. I know the two most important things are: a) getting a low approval from the lender, which will probably require cash. b) having a buyer ready.
I am not looking to buy a house, and then find a buyer. I'm looking to have a buyer ready....purchase the home at the cash approval price, and flip it immediately to the end buyer, and make my $30,000-$50,000.