Can you still have success in short sales?
You certainly can, especially if you're willing to hold out through the process. One of the main issues is where the BPO (broker price opinion) comes in too high then you can walk. The banks have caught on the increased prices but deals are still out there. It makes it a lot easier if the process has already been started and there is a bank approved price in place.
Absolutely you can have success at shortsales! My partners and I are big fans of them, however you usually end up with a bunch in the hopper and you have no idea when or if they will close. The key is to make sure there is a good shortsale negotiator involved. If there is, then they will do what it takes to get the file closed for the right price...but they can only do so much sometimes. There are still plenty of markets out there with people upside down on their mortgages and are wanting out of their homes. This is an excellent tool in your investor tool belt if used correctly.
I have about 7 shortsales pending right now, waiting for approval for me to buy. One of them I have had in contract since December. Its a numbers game. Just be careful not to put out too many, because if they all close and you don't have the capital to invest, it can cause you some issues if you don't know how to handle the situation correctly.
@Mikel Smalls My guess is you mean "can you still have success in WHOLESALING short sales"? (Otherwise, why wouldn't you be able to have success, if the numbers work? Just need more patience)!
@Tarl Yarber and others had a lot more to say in this earlier thread which you might find helpful:- http://www.biggerpockets.com/forums/311/topics/165...
@Mikel Smalls Absolutely yes, it is still possible. Price gone up so banks start to get even reluctant to fire sale them, but with a good (ie. low) appraisal there are still deals out there.
I have to agree with everyone, there are deals out there. There's success to be had in short sales.
You have to go door knocking if you haven't already. I am currently door knocking Miami pre-foreclosures with sale dates.
Short sales work as an investor if you are willing to write offers! In Utah (using Realtor forms) there is just about zero liability to writing offers. You and your Earnest Money aren't on the hook until everyone signs a form acknowledging the third party approval. That said, I think success with SS is more of a shotgun approach. Any offer a day... sorta thing. I suggest to my clients approaching it like, "what do you want to pay for this house?" then write that up and move on...
I've had several successes in Short Sales since the beginning of the year. Ive bought several houses this year with my smallest profit being $5k. The rest were $16k, $26k, $15k, and I have 5 more in my pipeline. I'm not bragging (as I'm sure others here have made WAY more than me) but just reiterating the fact there is a lot of money to be made in the pre-foreclosure market. The mortgage crisis is still in effect in 2016 with a lot of homeowners still facing foreclosure. I know because my leads are still plentiful and still to many to go after by myself. I've even started mentoring others in pre-foreclosures with great success.
Any one else out there doing short sales and making a ton of cash on the wholesale or rehab?
What are the risks to the purchaser of a short sale? When can the purchaser walk away without losing earnest money?
Also, if the foreclosure date is coming up, can you place in the offer a statement that the "purchaser offer is contingent on if the bank/lender extends the foreclosure date" in order to avoid the sellers right of redemption?
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