Short Sale As An Exit Strategy

7 Replies

Hi Guys,

Does anyone have any experience with buying a short sale property? I'd like to help out a seller who has several properties that would be short sales. Would it be best to refer her to a Realtor or could I make something happen with them? Is there an exit strategy that would work? On several of them the mortgage payment is more than the current rent payment. What would be the best approach?

A short sale is their best option.  Not a very good chance you could wholesale them, and you'd just lessen their chances of getting the short sales done.

Sure;  I've bought several.  What area of "the Tampa area" are the properties in?  I have a good negotiator who works out the details and makes the deal come to my numbers.  The only approach I know of is to make the bank see the light of Reality. <g>




 Originally posted by @David Battle :

Hi Guys,

Does anyone have any experience with buying a short sale property? I'd like to help out a seller who has several properties that would be short sales. Would it be best to refer her to a Realtor or could I make something happen with them? Is there an exit strategy that would work? On several of them the mortgage payment is more than the current rent payment. What would be the best approach?

@Stephen S. I know of 4 unlisted properties in these cities New Port Richey, Spring Hill, Lutz, and Tampa. I have no intentions on buying the properties because I wouldn't be able to wholesale them but I'd refer them to someone. Upon purchasing the property was exit strategy do you use?

@David Battle

A short sale isn't an exit strategy.  It could be part of an acquisition strategy, but it is actually a prelude to the seller being able to sell a property they are underwater on.

Here's the thing to realize...short sales take time to negotiate, sometimes a long time.  Some regulations have eased the pathway to a short sale for some people, at some institutions, in some circumstances...you get the picture?  There are a lot of variables.  As @Wayne Brooks noted, unless you are experienced in helping to facilitate a short sale, your involvement is likely to muddy the waters rather than help.

The fact that the mortgage payment is more than the current rent payment is irrelevant to you, unless you were looking to do the deal Subject 2.  Otherwise, you would refinance anyway, so you would get a new mortgage & mortgage payment.

There are realtors here in the DFW area who specialize in Short Sale properties.  They have experience with the Short Sale process.  However, unless you know one of them there in FL, I would simply suggest to the seller they locate one.  Otherwise, there are services and programs that offer help to owners who are underwater.  There is also the HARP program.

My advice is you Google Short Sale resources and provide the seller some links and information.  Then...tell the seller than once they have gotten a negotiated price or refinanced through a program like HARP, then can call you and you may be able to help them at that time.  

Underwater properties, particularly with negative cash flow, are albatrosses.  There is no margin and no income.

I would take Hatties advice. I am a real estate agent. She is right short sales are not exit strategies. They can be an extremely long process. Unless you have experience with short sales I would pass. I am sure there are other deals/ better deals that are less of a headache.

@David Battle

If you look for a Realtor, look for one with the SFR (Short Sales and Foreclosure Resource) certification or a CDPE (Certified Distressed Property Expert). These folks have the training to help your seller through the short sale process.

TX Agent # 654313

Let's start with the one in NPR.  Bring it to me, let's see if it's something I want, and if an agreeable purchase deal can be struck, and if we close I will financially reward you.  Although I am willing to look at it;  Lutz would have to be a maybe and Spring Hill and Tampa are too far for me.

BTW:  a short-sale is more an entry strategy than an exit strategy. <g>  

My mind is subject to constant change but at this point my exit strategy tends to be to let my eventual grandchildren handle those details. <g> 

stephen
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 Originally posted by @David Battle :

@Stephen S. I know of 4 unlisted properties in these cities New Port Richey, Spring Hill, Lutz, and Tampa. I have no intentions on buying the properties because I wouldn't be able to wholesale them but I'd refer them to someone. Upon purchasing the property was exit strategy do you use?

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