Sweet Tip – How to Make Offers on Short Sales

Short sales are super sweet, Kids - but ask almost ANY seasoned investor, and they’ll tell you that they are a big fat crap-trap in terms of the effort they take to do successfully. So what’s the next best thing. How about making ton’s of short sale offers and letting some other fool do all the work. That’s the American way, right? If you’re not making offers on SS deals, you should be. But here’s a few tips to keep in mind if you want to successfully buy short sale deals. If you just follow these few key points you will be on your way to buying short sale properties.

How to Make a Fool-Proof Short Sale Offer

Cash is King:
When possible show a proof of funds with cash. If you don’t have a rich Uncle, make a super clean offer with a GREAT pre-approval letter from a bank - NOT a hard money lender. Letters from HML’s are crap and the banks know it.

Research The Negotiator:
You have to know how experienced the negotiator is! Why waste time with some Realtor who took a free class? Negotiating SS deals is a tough business. Work with a Pro. They are worth their weight in gold.

Crappy houses get bigger discounts:
Banks aren’t stupid. You’re not ever going to get a smoking deal on a house the needs no work. Don’t waste your time. And know that the price listed on the MLS is the price the Realtor “thinks” he can get from the bank. Realtors as we all know however - are clueless. Just because your favorite $500K house is listed for $199K, that doesn’t mean the bank will sell it for $199K. Be smart.

Make a Clean Offer:
Close in 2 weeks after approval. Waive all inspections and contingencies. Offer a $100 EMD up front, then at least $1000.00 upon approval.

Know the law:
In Maryland you should be offering on vacant houses or non-owner occupied only. The foreclosure laws do not apply to these types of houses

Make an offer that works for you:
No matter what you hear about how much banks will discount; no matter what some Guru told you to offer - you need to make the offer that works for you. Ignore all else! Making offers on SS deals is just like making offers on any other house. The numbers have to work for you.

The MOST important tip on how to make successful short sale offers is in the video below: