Negotiating with mortgage lenders to accept less than the mortgage balance for a property can make you lots of money in real estate investing. Not all short sales are potentially profitable, while some can make you lots of money.
This article walks you through the best sources of profitable short sales.
Even though all short sales involve negotiating for a discount, some of them are a pure waste of time
As a real estate investor, you should aim for those deals that will make you more money.
1) Work directly with motivated sellers
The best properties for real estate investing come from motivated sellers.
This must happen before a bank forecloses on the properties.
The motivated seller must be at least 2 months behind on their mortgage payments to qualify for a short sale.
You can find motivated sellers by targeting people who own real estate and they are in legal trouble. These include people going through divorce, burned landlords, people with liens, people who have inherited properties, vacant houses, expired listings etc.
These people probably have properties they would like t sell, even though they are not listed on the market.
2) Make sure time is not limited
In some states such as Texas, you only get 3 weeks from the time a foreclosure notice is filed to the time foreclosure happens. In other states you may have several months before foreclosure happens.






