Jeff Kaller, a Short Sales Expert and Trainer, who consistently closes deal after deal shared what he thinks is the biggest mistakes real estate investors make.
Layla: Jeff, what is the 3 biggest mistakes real estate investors make when dealing with a short sale?
Jeff:
#1 Mistake - People think that short sales are difficult and not a viable business. Biggest mistake is that people think that it is not a good business model. They think the following:
• Banks are not discounting
• Short sales take too long
• It doesn't work
• The banks won't work with us, etc.
If you truly understand the way short sales work, you can literally control your entire market. Everyone has the mindset that this doesn't work where I live and I can't figure it out.
#2 Mistake - Another big mistake people make in investing in real estate is they go buy a house and they want to resell or fit it up and do a rehab, but the truth is because the market is so soft, you have to stand out and be different than everyone else. We create short sale opportunity to allow us to wholesale this home on the multiple listing services (MLS) and let the realtor do the work. We wholesale the home under market value.
Important ratios to remember: never sell a house to an investor for more than 70% of what the house will sell in 90 days. Conversely, we don't sell a house to an end user (someone who wants to live in a home) for more than 80% of what the house will sell for in a 90 day sales cycle.
We are getting huge discounts. We are seeing 40 - 44% discounts in the deals. If we are getting 40% discount, do you think we can get these houses sold? Absolutely! We are undercutting the competition.
#3 Mistake - Big mistake is that everyone thinks that there are no buyers and no-one wants to do real estate right now. The truth is we are learning to control the variables that control our checks. We are able to turn these homes over at such a low purchase price to the end user and investor, we get them sold no matter what because we create the opportunity to just wholesale the house.
To gain access to interviews with real estate experts and get free tips with Real Estate Gold Sheet's Newsletter, go to http://www.1WealthCreation.com
Article Source: http://EzineArticles.com/?expert=Layla_Tusko
Layla: Jeff, what is the 3 biggest mistakes real estate investors make when dealing with a short sale?
Jeff:
#1 Mistake - People think that short sales are difficult and not a viable business. Biggest mistake is that people think that it is not a good business model. They think the following:
• Banks are not discounting
• Short sales take too long
• It doesn't work
• The banks won't work with us, etc.
If you truly understand the way short sales work, you can literally control your entire market. Everyone has the mindset that this doesn't work where I live and I can't figure it out.
#2 Mistake - Another big mistake people make in investing in real estate is they go buy a house and they want to resell or fit it up and do a rehab, but the truth is because the market is so soft, you have to stand out and be different than everyone else. We create short sale opportunity to allow us to wholesale this home on the multiple listing services (MLS) and let the realtor do the work. We wholesale the home under market value.
Important ratios to remember: never sell a house to an investor for more than 70% of what the house will sell in 90 days. Conversely, we don't sell a house to an end user (someone who wants to live in a home) for more than 80% of what the house will sell for in a 90 day sales cycle.
We are getting huge discounts. We are seeing 40 - 44% discounts in the deals. If we are getting 40% discount, do you think we can get these houses sold? Absolutely! We are undercutting the competition.
#3 Mistake - Big mistake is that everyone thinks that there are no buyers and no-one wants to do real estate right now. The truth is we are learning to control the variables that control our checks. We are able to turn these homes over at such a low purchase price to the end user and investor, we get them sold no matter what because we create the opportunity to just wholesale the house.
To gain access to interviews with real estate experts and get free tips with Real Estate Gold Sheet's Newsletter, go to http://www.1WealthCreation.com
Article Source: http://EzineArticles.com/?expert=Layla_Tusko
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