Investing in Short Sales

   In real estate investing, some clients like to invest in short sales. They figure they are helping and being of service to a distressed home owner while also increasing their real estate portfolio for pennies on the dollar.  For more information about using short sales as a real estate investment vehicle, read below. And as always, fell free to contact us for information. We will be glad to assist you in locating and acquiring properties thru short sales. 

​There are several ways to invest in short sales in the real estate market. Here are a few options:

• Invest in a short sale property: You can purchase a short sale property directly and then resell it for a profit. This can be a good option if you have experience in real estate investing and are comfortable with the risks involved. Please keep in mind the financing. You need to be able to sustain the property until it sells. That may mean having a cash reserve in the event of a delayed sale or substandard interest in the property.  
• Invest in a short sale fund: Some real estate investment companies offer short sale funds that allow you to invest in a pool of short sale properties. This can be a good option if you want to invest in short sales but do not want to take on the responsibilities of being a landlord. Or, you can always start your own real estate investment group. However, be aware of the liability involved. You may want to reach out to our attorney or an attorney you are comfortable with for more details and assistance. 
• Partner with a real estate investor: No need to "re-invent" the wheels. If you know of someone doing what you are trying to do, then connect. You can partner with a real estate investor who has experience with short sales. This can be a good option if you want to invest in short sales but do not have the experience or resources to do it on your own. 
• Be a short sale investor: If you have no interest in flipping or acquiring short sales, but still want to be a real estate investor, perhaps you can you can invest in short sales by providing the funds for the short sale process, this way you can have a return on investment and at the same time help the homeowner to avoid foreclosure. Be a real estate financier can help with your real estate investors goals. But you need to be certain of the partnership. How well do you  know the company? The person? Have you checked their references? What is their standing with the Secretary of State? Are their documents in order? Have they paid their taxes? All considerations when you are thinking about where to invest.  After all, it is your money. YOu decide the best investments based on your research. If you need assistance with conducting due diligence, give our attorney a call. 

 
Please keep in mind, and it's worth noting that short sale investing is not for everyone, it can be complex and time-consuming, and it also carries a higher level of risk than other types of real estate investing. Therefore, it's important to do your own research and consult with a real estate professional before making any investment decisions.

If you have questions about short sale real estate investing, give us a call.