Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Short Sale

I do a ton of bank owned properties as flips.

Im a licensed builder and build new homes, but we do a bunch of flips every year we buy from the bank.

Im also a licensed realtor and have done a little with short sales as well.

Short sales can be good, They are called a "Short sale" because they are selling for "LESS or SHORT" of what is owed.

In my experience you can get a good deal on it...but not as much as some REOs ( bank owned/foreclosed). The bank does NOT want to have to foreclose and may be motivated to take a good deal less though.

Now is a good time as the banks want to get rid of liabilities BEFORE the fiscal year end.

Another good thing about a short sale..is there is NO "right of redemption" like you get if you buy a foreclosure.

Foreclosures are good too. Ive done bank owned flips now for over 25 years...and have flipped everything to single family houses, multi family dwellings,,,even LARGE apt complexes.

Ive always been told how Banks wont move much..etc. WHATEVER. I don't care what folks say..Ive got banks down HUGE amounts.

As a matter of fact..Im closing on one Friday. Bank owned..was listed at $125,900. I am paying $95,000. $32,000 Below asking.
Most banks will make a deal..especially at the end of a year.

Id figure a hard number on the exact cost of repairs, do a comparative analysis and see what it should be worth fixed..based on the average SELLING price per sq ft on similar properties in the area.

Then figure how much I would be happy with for the acquisition price PLUS the repairs...still keeping it significantly lower then your Comps, so that when you do ever sell it you will be making money..not losing any.

Id start low...and if they say no..Id move up a little until I got it for a price I could live with.

If you CANT..then MOVE ON to a house that you can.