what is the difference between a shortsale and wholesale and how will it effect me as a new wholesaler?
Short sale is an attempt to avoid foreclosure by negotiating a discount of an existing mortgage. So, if you’re upside down and/or behind on payments, this is an option for you. Short sales deal with the mortgage holder.
In reality, though, it’s all kind of wholesaling. With short sales, wholesale flips and REO’s you’re still selling wholesale. Each is basically a niche under the same umbrella.
It won’t affect you one bit. As a wholesaler, if you find a deal that needs a short sale, pass it onto a loss mitigator and work out a piece of profit for doing so.
Another difference is that shortsales are like four leaf clovers. They never actually close.
I know some guys that make a lot of money in short sales. But, for me, there isn’t enough money in the world to get into that business. I’d rather stab myself in the eyeball with a fork than negotiate with a bank on anything…