A couple Q's for you pros on here...
Here in Utah foreclosures and short sale numbers are booming, not as badly as AZ and FL but bad.
Utahs market is expected to bottom around 2011, a bit later than other parts of the nation. Prices are expected to drop 30%+
Is it possible to do SS flips in a local market like this?
If it takes 4 months to make a deal happen and prices are falling all the while is that gonna make it harder?
Thanks in advance,
Gotta get the BPO to come in right & negotiate the crap out of it. I was doing them in So. Cal. last year when the market was dropping 3-6% per month. A little more to do to make sure the purchase price is right, but it can be done.
Well as long as its not impossible...
Was it harder to find buyers?
Did you have a 'buyers list' or did you just negotiate a screamin deal and list it?
How did you close your deals?
Thanks for the reply!
Back then I got screamming deals & wholesaled them to cash buyers or got an end buyer from an agent. If you can form a good relationship with an agent that gets it, they can be extremely valuable to you. That would be my suggestion if you are starting out & don't have a buyers list yet.
Does your end buyer have to be a cash only buyer?
Would you mind giving me a rough break down of one of your deals?
How you found your SS candidates, how long the SS process took, etc.
Sorry bout all the Q's thanks again!
A friend had a nieghbor that was losing his house. I signed the nieghbor. Negotiated with the bank. BPO was 243K I got it under contract for 123K assigned it to a friend who got financing & walked out with $11,500. Buyer doesnt have to be cash. Cash is alot easier, but not required. Now I work with agents & brokers to find sellers & buyers. Thta process took me about 2 mos. for acceptance & another mo. to close due to buyers financing.
Wow for half of the BPO!
Can you still assign contracts like that?
you cant "assign" shortshoales or REO's but you can certainly double close them using transactional funding (which I can provide if you choose)
You can alos make the offer in an LLC and sell that LLC to your all cash buyer (but that is for other investors usually and not homeowners)
John, to answer your initial question, the solution would be to find a buyer as you are negotiating the short-sale so that you do not hold the property for too long as it depreciates.
The people I know who are doing this have developed a system of finding buyers so their risk of depreciation is low. But they have put in a lot of work to create their entire marketing system and network, so it is not easy money by any means.
But it is good money for someone who is willing to put in the effort.
As Vikram pointed out, put forth the effort and work and it will yield results. Nothing in this business is easy, it all requires work, regardless of what the gurus say on TV.
I understand, if it was easy everyone would be doing it.
I think there is alot of opportunity here in my local market, I'm just trying to find the right strategy to use.
Thanks for all your responses, plan on alot more Q's from me!
The right strategy depends on your abilities, goals, personality, and your local market.
You need to do what you enjoy and what you are good at. If those strategies do not fit your local market, you must go to a market that does or get more comfortable with one of those strategies that does match yoru market.
We use to spec build but do not as it makes no sense in this market today, it did back then.
We aslo did a lot of buy and hold, stopped over the last year and will most liekely continue soon.
Again, you must enjoy it, understand it and it must be viable in your market of choice.
Listen to all the advice you can get here on this site. Remember this: just because the real estate market is changing in your area, for the good or bad, if you have a property for sale at what a buyer considers a good price, they will buy.
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