Short Sale Time Machine! How to Pipeline Your Deals for Future Payoff

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Can you keep a secret?

Don’t tell anybody, but I actually found a time machine!

It’s not a Delorian like ‘back to the future’ where I can go through time on adventures and of all things… kiss my own grandma (who does that? McFLY!).

It’s not the one from TimeCop either, because I’m pretty sure I’d be the bad guys trying to profit off of stock deals, only to meet Van Damme face to face (or, foot to face…Nice boots Jean Claude). No, it doesn’t do anything fantastic or send me through the space time continuum: my new time machine does one thing, and it does it very well.

Do you ever procrastinate? Sometimes its my middle name. I always say that the “past me” must hate the “future me” to load him up with more work while “past me” just dorks around.

But there are certain times where I’m pretty sure “past me” is a genius. Like when “past me” loads up a good pipeline of short sale deals that will pay off big for “future me.”

You see, “past me” is putting houses in a time capsule for 6-18 months locking in the past price while the market is going up, so when the deal is finally accepted, it’s like I traveled back in time to buy that house. The savings can be huge! When I go to flip this house now, my ARV is 5-10% higher.

This is why I’m convinced we can all get along!

But, you must be saying “holy cow that was confusing”, but also “what if the market goes down while time traveling?”

The market can go up or down while we are playing short sale time machine, but we will still be OK. After all, I don’t have to buy the home if it eventually gets accepted.

“Past me” knows what he’s doing!

(To Be Continued Next Week)

Hang on for Part II that’s coming next week… unless you can hop into your own time machine and start reading right now!

Photo Credit: clarksworth

About Author

Anson Young

Anson is a full time real estate investor and part time adventure-taker. He is a wholesaler and flipper currently who daydreams of landlording. Anson lives in Colorado with his wife and son (who join him on the aforementioned adventures), he plays in a band and is way too into cold showers.

7 Comments

  1. Here in Las Vegas I have used this strategy on a few deals, but took it even one step further. For example I had a condo in escrow for a buyer that was a short sale for 6 months. The buyer had also put in other offers that were accepted, these deals were also short sales. Once the buyer received lender approval on the second property she decided to go with that and cancel on the first one. the first one was locked up at $45k but was now worth $64k as there were new comps that pushed up the value. Rather than canceling the deal and allowing the listing agent to put it back on the market, I slide in my offer with the exact same terms as the original buyer but with my name on it. It took another 3 months for the bank to approve the short sale and they never ordered a new BPO. This allowed me to get it for $45k. I spent $100 to clean the carpets and sold it in 90 days for $65k. BOOOOM! On to the next!

    Best Regards,
    Robert Adams

  2. So to make this strategy work, you need:

    a)An agent to submit your offers
    b)Proof of funds in the bank/escrow
    c)A buyer already lined up or your own $

    The only thing is, it would seem like to have a buyer ready, you’ll need to have your offer accepted at the low price FIRST, which means you would HAVE to have your own funds ready at offer…?

    Anything else i’m missing?

    • You basically got it, there is more of course which I’m writing up for next week, the how to. I’m licensed so I run things slightly different. I never get a buyer ready until I have the approval letter in HAND, otherwise, you really have nothing concrete. Once you have an approval letter, you know the price is solid and can go find a buyer if you are wholesaling, or just move to close if you are a landlord or flipper.

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