Questions about exits on short sales

Foreclosures, Short Sales, Tax Foreclosures
1

Hello i am a newbie to real estate investing and short sales seem to be a very fasinating and profitable niche, but i have a few questions that if anybody has some insight i would love to hear about.

What are the most common exit strategies for short sales? From what i’ve read on the net, it’s to develop a buyer’s list and sell to a rehabber or rental investor. i was just curious if it was a common practice to short sale a property and convert it to a rental by picking up the new note from the bank w/o a down payment because of the amount of equity that you created with the short sale?

Thanks for any and all info.

2

Your goal is to convince the bank that there is no equity, hence why they are discounting the payoff…to reduce the payoff to what it is currently worth. You can’t convince them that there is NO equity then turn around and convince them that there is LOTS of equity so that they will give you a 0% down loan. It’s like me trying to convince you your car is worth $40 and trying to buying from you for $40 then next week telling you it’s worth $4000 and trying to resell it to you. Money needs to come from outside of the originating bank.