Is there a basic formula that investors use for short sales to offer to the bank? LIke for example, if there’s a 1st and 2nd mortgage, how do you determine how much to offer?
you have to determine how much money you want to make. Its pointless to have a short sale accepted and it doesn’t make you any money.
What you have to do is analyze the deal, to see how much repair work the property may take, how long it will take to sale, if you need to hire an agent, the carrying cost, your marketing, and then you profit. There you will have your max offer.
Don’t start negotiation with the max, start lower to get the deal that you want.
Hey Baldy,
Have you done some other deals before? Have you fixed and flipped a few properties yet?
That is an easier place to start than doing Short-Sales. I’m not trying to scare you, it’s just there are several steps in a Short-Sale process, and when you realize how many there are, most people quit or surrender.
If you are set on doing one, find someone that has done a bunch of them and partner on the first deal or 5, to learn how to get them done.
Everyone is jumping on the Short-Sale bandwagon, but most can’t get them done as they haven’t learned all the steps, and end up just pissing off the bank and then they won’t deal with you anymore.