Any thoughts on the opportunity with short sales with the current market conditions?
My idea is to shop ebay and pick up something that can educate me, so I can hit the ground running. Any training materials that someone can recommend that are effective? :bobble
I’ve been going through the free Carleton Sheets info online a bit during the past week or so and there is a lot of good info there. Maybe that will help you get started.
I’ve heard good things about Shaun McCloskey and his material.
Short Sales are not any easier in the current market. I guess some areas of the country lenders might be more flexible, but I have not seen or heard from anyone who said they got easier.
Short Sales are complex, and takes time to complete. You need to be patient.
You can find some good resources on ebay, heck buy them all and listen to them to learn from them. I have done couple before I decided I rather just find better deals than deal with short sales and since then I’ve just referred short sale deals to other agents and investors for a finders fee.
Fadi,
Thank you for your great advice. I came to the conclusion that you can never go wrong by constantly educating yourself through books, CD’s, and what I found interesting, is that I have found more info free here at the forums and through the online training from carleton sheets. I am just against paying thousands for the “secret” that will be revealed in a 2 day boot camp.
Let me ask you a couple questions if you can help. When you started out, what methods or niche did you operate in? (Wholesaling, birddogging, rentals etc…)
I live in Hawaii, where the median price of a SFH is in the high 600’s, and foreclosures arent as prevelant as lets say Nevada, Florida, or California. Generally speaking what strategy would you recommend for someone to implement in todays market? What do you specialize in?
Thank you, and good investing!
The problem new investors have now a days is that they are trying to “specialize.” Why do you want to specialize in one thing?
If you find a deal at 80% of fair market value, is it really such a bad deal? 95% of wholesalers will pass on it.
But, what if it will cash flow based on the area you live in and some landlords would buy it?
What if seller willing to carry and it could be sold on owner financing quick and sub2 investors looking for such deals?
I do sub2 deals where I love carry backs, I have sold some on owner financing, I have rented some, and I have rehabbed and sold some.
If I get a short sale deal, I bird dog it to those i know do short sales. One of them is an investor who pays me 30% of the profit, another is an agent who gives me 25% of the commission if they successfully short sell it. I have an agent right now working on 3 short sales, all referrals from me. She has been working on them for months now.
I have bird dogged properties that are not in my comfort zone… I call other investors I know and tell them to see if they can do something with them and if they can, just send me a referral money.
I have bought houses from referals. One wholesaler got a lead on an expired listing that did not sell for $122k, and they owed $108k on it. How many wholesalers would just walk away?
She emailed me and told me the numbers and the address. I researched it, consulted with John $Cash$ Locke on the numbers due to the little equity it had, but based on other factors I ended up buying the house.
I gave her $500 referral fee for buying it, but i was able to owner finance it within 2 days and made $36k out of that deal so I gave her another $500 as a thank you so she made $1000 from a deal just about anyone else would have walked away from.
Don’t limit yourself… See what landlords are looking for numbers wise, see what rehabbers looking for, see what any and every “good” and “active” investor is looking for then see if your deals fit their numbers.
I used to broadcast deals to an email list of deals I did not want. I tell them the numbers and street name and if any is interested, I will send them the house number. If they close, I expect a referal fee from $250 to $1000 depending on how good the deal is.
I only added those I trusted. This is extremely important, because I trusted the people I network with. I don’t mind giving them the name, numbers, and address of deals I am working on or ask for their help or opinion. I know none of them will go behind my back, and they know I won’t.
This business is based on networking and relations, that is why I think everyone should attend their local REIA clubs.
Fadi,
Your professional advice is very well appreciated, and I will use what you said and put it into action.
as well as utilize and explore every angle when putting a deal together. Instead of specializing in just one niche.
Have a great weekend