In the real estate world, Short Sale means the bank is willing to sell a property to a buyer at a price less than the outstanding mortgage balance. This means the bank will need to write off the remaining balance and call it even.

When deployed properly, this can be a very powerful strategy for the real estate investors, because there can be substantial equity built into each deal. Let’s dive in to see how you can access short sale.

Among searching online, the most traditional and effective way to access the inventory is to build a business relationship with the bank. It is not the bank’s business model to become a landlord, as the banks are more interested in making money through loans. With that understanding in mind, you can go approach any banker more confidently, knowing that you are providing them a service that they need. To establish a long term, sustaining business relationship, you cannot be too selective with the deals up front. It may be good to get yourself ready to pick up the first couple deals even if they are not too lucrative; if you can position yourself as a deal breaker who does not mind helping the banker out, the favor will eventually return back to you.

Do your due diligence when picking up a short sale deal. You may not always be able to inspect the interior but at least do your best to assess the exterior condition. Are the doors and windows appear in decent condition? Is the grass on the front yard being trimmed? Are there trash being piled up at the sidewalk? These are all signs to indicate what is the possible condition inside.

If you would like to learn more about the business of short sale, you may want to check out this course: https://passiveactiveincome.com/short-sale-foreclosure-short-sales-real-estate-investing-foreclosures-2/