Short sale and REO deal finding

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Diana KhanPro Member
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 672 posts · 238 votes
1d
Quote from @Daniel Attivissimo:

Investors, have any of you successfully purchased a property through a short sale or REO? If so, would you consider it a good deal, and did it ultimately work better as a buy-and-hold or a flip?

@Daniel Attivissimo, I think short sales and REO properties can be good opportunities, but it really depends on the deal. I'd lean toward flipping if the property needs work and there's enough room for profit after repairs and holding costs. If the property is in good condition and the rental numbers make sense, holding it could be the better option.

I'm a real estate attorney, broker, and investor based in Maryland, and I work with clients on property purchases, contracts, and title matters. One thing I've learned is that a lower purchase price doesn't always mean fewer problems. It's important to understand what you're buying and any issues that might affect the transaction.

Thanks for bringing this up, @Daniel Attivissimo! It's always interesting to hear how investors approach different types of properties. Happy to stay connected!

[email protected]240-266-0291
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  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 672 posts · 238 votes
    1d
    Quote from @Daniel Attivissimo:

    Investors, have any of you successfully purchased a property through a short sale or REO? If so, would you consider it a good deal, and did it ultimately work better as a buy-and-hold or a flip?

    @Daniel Attivissimo, I think short sales and REO properties can be good opportunities, but it really depends on the deal. I'd lean toward flipping if the property needs work and there's enough room for profit after repairs and holding costs. If the property is in good condition and the rental numbers make sense, holding it could be the better option.

    I'm a real estate attorney, broker, and investor based in Maryland, and I work with clients on property purchases, contracts, and title matters. One thing I've learned is that a lower purchase price doesn't always mean fewer problems. It's important to understand what you're buying and any issues that might affect the transaction.

    Thanks for bringing this up, @Daniel Attivissimo! It's always interesting to hear how investors approach different types of properties. Happy to stay connected!

    [email protected]240-266-0291
    1Reply
  • Daniel Attivissimo
    OP
    Real Estate Agent · CT · Member since 2026 · 2 posts · 0 votes
    1d

    Great points, Diana! I completely agree that a discounted purchase price doesn’t necessarily translate into a good deal. The due diligence is just as important as the numbers. Given your experience on the legal side, I’m curious what some of the more common issues you’ve encountered with short sales or REOs have been, particularly around title, liens, or other complications that investors might overlook?

    Im an investor and investor focused realtor in CT. Always looking to learn more and add value. I’d love to stay connected as well!

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1d

    we are selling a property right now via short sale (as the lender) off market deal and have several other off market deals we aer working with buyers on. I always tell investors to seek out note investors they should be your best friends.

    the one thing I will mention is note investors will sell you properties, but it does not mean they will sell them at rock bottom prices - they get sold where everyone canmake money but you will not get rich off of us

    7e investments53 Reviews
    WebsiteView Page
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    • Elizabeth Riggs
      Wholesaler · South Bend, IN · Member since 2026 · 15 posts · 0 votes
      1d

      Chris, where do you find note investors?

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  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 926 posts · 637 votes
    10h

    Daniel, short sales and REOs cross my desk like everything else, and the channel has never made the deal — the numbers did. A short sale or REO only works for me if it clears the same screen as every other deal: purchase under $100K, ARV of $180K to $265K after rehab, and rent of $1,395 to $1,950 for a 3-bedroom on Section 8, so the 1% rule holds. Deal flow is my bottleneck, not capital, so I work every source — wholesalers, agents, bank-owned listings — and let the math sort them. I buy to hold and refinance on a DSCR loan at 70 to 80% LTV, not to flip, so a slow bank timeline hurts me less than it hurts a flipper. Judge the deal, not the door it came through.

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  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 207 posts · 69 votes
    9h

    Daniel, from the agent side, short sales and REOs are still out there, but the part that burns people is the timeline, not the discount. Short sales mean the seller's lender approves your price, and that process has a pace of its own — I've seen 60 to 90 days just to get an answer, so patience is part of the purchase price. REOs are cleaner since the bank owns the property, but banks list through asset-manager agents and price off their own numbers, so distressed doesn't always mean cheap. Two practical moves: work with an agent who has actually closed short sales before, because the paperwork and follow-up rhythm is different, and order your title search early — liens and HOA balances on these deals are where surprises hide. If the numbers work after you build that waiting time into your holding costs, either channel can absolutely be a keeper.

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