Real Estate Investor · Matthews, NC · Member since 2009 · 28 posts · 1 vote
I wanted to ask all of the experienced Short Sale Investors (those that buy & sell to end buyers via a back-to-back closing) what are some typical profits you all are seeing in this market? I would like to focus on higher end luxury homes, has anyone been successful negotiating these type of deals at a discount, and what are typical profit margins? How difficult, and how long are short sale deals taking to close, are some markets quicker than others? I mainly wanted to get an overall feel on this strategy in today's market before I invest my time & resources in Short Sales. Any feedback would be greatly appreciated!
Real Estate Investor · Tampa, FL · Member since 2008 · 456 posts · 42 votes
17y
I work deals primarily $500K and above. The profits depend on the deal. Just like they say that you make your money when you buy, with a short sale, you make your money when you evaluate it. Where is the property? Is it in an area where sales are good or poor? What is the age of the home? How long has it been on the market? All these things play a role in what you can negotiate it down to. Of course with the high end properties, you will make more than with the small deals. I've had some tell me banks move high end properties faster because they don't want them on the books. I see no difference between them and moderately priced homes. I still believe it depends on the mitigator's load. Hope that helps.