Whats your exit strategy with these newer homes? If most of the homes that are selling are under $125k, it wouldn’t make sense to me (that’s just me) to short sale a $275k house down to $175k and have a meltdown with all the holding costs trying to unload a $175k house in a $125k market.
I’d really make sure I had some buyers tho on my buyers list that are looking for $175k houses before I considered doing a short sale on the higher end homes in the area. But then again, my area is Michigan and your area might be completely the opposite and you’d have no problem moving higher-end homes.
I have two houses like that right now. One is 650K, they owe 565K and are several months behind even after a forebearance. If I could short sale down to low 400’s, then I could sell at 500K and still the end buyer gets instant equity. The other house will be harder to sell. It appraises at $849K and they want $685K, aren’t in foreclosure yet, but headed that direction. So, I am guessing I should just try to wholesale it, right? I don’t want to purchase either house, maybe just assign. :rolleyes
Pete – Put DOWN the coffee and slowly baaaaaack awaaaaayy… :shocked
I find it interesting that you are so down on Short Sales; they’re picking up steam here in Central Florida. Although I’m new to that game and haven’t done any myself, I’m currently researching one this week and was in a meeting tonight that talked about some of the recent ones completed by my REI group – like a 232k home SS’d to 132k, then sold for 165k… and another valued at 153k, SS’d for 80k and currently on the market for 110k.
they’re definitely out there, at least in FL.
…so here’s a question: if you DON’T have 20 yrs of experience and lots of capital to preserve, how THEN would you approach this market? Find a job and come back to real estate in five years? Isn’t there always a way to profit in any market for a real estate professional, much like a stock trader?