So EXACTLY how many short sale deals have you done and WHEN were they closed???
You say that YOU don’t need financing, you’ll just “put the deal together and let the other person deal with financing.”
Well SOMEONE needs to deal with financing in this scenerio INORDER FOR YOU TO MAKE MONEY. Saying “you don’t have to deal with it” is NOT reality!!!
Those job lines you saw in NYC are going to be a common sight in this country in 2009. The bottom line for you to get ANY deal done is…
SOMEONE NEEDS TO GET FINANCING!!! With less and less jobs…What do YOU think happens to home prices from here???
You are making a gigantic miscalculation here…Thinking that home prices CAN NOT fall below a certain level has been a SUCKERS bet for 3 years now. JOB LOSSES = FALLING REAL ESTATE PRICES… that’s a FACT. WE HAVEN’T SEEN THE WORST OF THIS YET. As a matter of FACT…The NY/ NJ areas have, (until now) held up reasonably well as far as real estate prices go…That is changing BIG TIME now. With the Wall St. BUST NY/NJ markets are getting slammed as THOUSANDS of Wall St. jobs go up in smoke. These jobs losses will have HUGE effects on RE prices because even businesses NOT tied to Wall St. will be affected. If you’re under the impression that prices in these areas CAN’T go lower…You need to do more research!!!
Why not just do your short sales PART TIME???..The risk to you is ZERO…Every single CENT you make can get rolled right back into your business and most importanty…You have SECURITY in a time when THAT commodity will be VERY HARD TO COME BY!!
Or…roll the dice just as we’re entering the belly of the beast. :shocked
Again…WHY all or nothing??? That is an abysmal business plan that almost GUARANTEES FAILURE!!
One last thing…HEALTH CARE!!! If your job provides you will good health insurance make sure you don’t forget to add about $1500/month to your expenses in your new venture.
Want to make a small fortune???
Start with a BIG ONE and then get hurt or sick without health insurance, and that BIG FORTUNE will turn into a small one… OVERNIGHT!!!
The bottom line is this…
You’ve done NO PLANNING for this venture…Talking to other real estate investors about the money they’ve made on deals is like talking to fishermen about the “bigones” they’ve caught. I’m not saying you were lied to, but I sure as hell wouldn’t bet my economic future on a few short sales I’ve heard about. The one thing I can tell you about these deals with no doubt is this…
There is ALWAYS more to that $100,000 profit story than your getting.
I can also GUARANTEE you something else…
Once that BANK see’s that transaction you used as an example…The “moron” realtor who did the BPO that was $100,000 lite will have done his LAST BPO for that bank. These transactions are listed in your local newspaper. The Bank WILL see that transaction and someones JOB at that bank could possibly be at risk for a screw up in the 6 figure range.
Good luck…This is all just my opinion…but I must tell you… I have seen this tried, this way, OVER and OVER and the end result is always the same…BUSINESS FAILURE!!!