Short Sales -- Four Common Short Sale Mistakes to Avoid

http://www.REIClub.com -- Investing in Short Sales can be profitable, but here are four (4) common Short Sale Mistakes that prevent you from taking home those BIG paychecks...

To Learn More About Short Sales:
http://www.ShortSaleInterviews.com

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. For today's quick video I will be covering the FOUR common mistakes made when investing in short sales...

1. Short Sale Process 1. Do you know it - Broker's Price Opinion (BPO), what goes into a short sale package, preapproval letters - Any piece of the pie that is missing will delay the short sale process. 2. The more you know, the easier it is for you to negotiate with lenders, qualify your realtors, and set expectations.

2. Paying Too Much / Paying Too Little 1. Research the property - comparables - before making offers -- repairs, fees, etc... 2. Banks are aware of the market

3. Inexperienced Listing Agents 1. How many short sales have they worked on/completed? 2. If they haven't done many short sales, then how will they sell your property quickly? 3. Negotiations - a big part of short sales is the negotiation - your realtor speaks on your behalf

4. Inspections 1. Hundreds of dollars could save you thousands ($175-$300) 2. Homes sold as-is - unless you are comfortable with assessing repair costs, I would highly suggest signing an option period

Investing in short sales can be very profitable if you are familiar with the process, but it is very easy to miss steps that could either delay the closing process or cost you thousands of dollars in headache. So be sure to do your research and talk to your local short sale realtors and brokers.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
http://www.youtube.com/watch?v=JoP-B6Mc_yw

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[JazzyMa757]

I am a subscriber,and what I would like to know is,"How can a person with no to very little money get involved in real estate" better yet, "With new investors, which area of real estate would be easier to get into and profit the most , to build quick revenue to reinvest".

[reiclub]

@JazzyMa757 - Hi There! Most new investors start out wholesaling real estate. There is little risk, and requires little to no capital to get started. I have some videos that cover that topic, check it out. Hope this helps.

[reiclub]

Thanks everyone for your comments.

[CarolAnnPaulton]

Listing agent experience is KEY. Make sure you provide the listing agent with a list of repair estimates by licensed contractors prior to the bank ordering a bpo - many of these are simply drive-bys and do not accurately gauge the condition of the home.

[reiclub]

@MultifamilyMK - That's a very good point. In order for investors to be flipping short sales on the month to month you have to establish a pipeline. Especially when some of these deals can take up to several months to close. The worst thing you can do is put ALL your eggs into one basket.

[cec163k]

Excellent Information!

[helpwithyourcrib]

Great infomation Frank Chen, I have not explored short sales yet, most of the properties I buy and manage are FSBOs . But im considering exploring that relm. Great clip!!

[miqdeb13]

The first mistake in investing in short sales is investing in short sales ;)

[karpdiem2]

I'm new to investing, but you are right on the money.....from what little I do know.