Profiting from Struggle: The Art of Short Sales for Real Estate Flippers
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Profiting from Struggle: The Art of Short Sales for Real Estate Flippers
Introduction
Short sales for real estate investors have become increasingly popular over the past few years. This technique allows the investor to purchase properties at a discounted rate, with the aim of turning around and reselling them for a profit. Short sales can be a lucrative way for real estate flippers to increase their profits, but they require a specific set of skills and knowledge to succeed.What is a short sale?
A short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance. This typically happens when the homeowner is unable to make their mortgage payments and faces foreclosure. Short sales are a legal process in which the lender agrees to accept the sale of the property at a lower price than what is owed on the loan.How to profit from short sales?
To profit from short sales, real estate flippers need to identify properties that are in the pre-foreclosure stage. This is the ideal time to approach the homeowner and offer to purchase the property at a discounted rate. Real estate flippers will need to negotiate with the lender to make sure that the short sale price is accepted.Once the property is acquired at a lower price, real estate flippers need to make repairs and renovations within a short timeline to get the property back on the market quickly. This requires a deep understanding of local area real estate market trends, finance, and construction to maximize returns on their investment.