Finding EQUITY

all you have to do to see if theirs equity in a property is, take either the for sale price(asking price) and subtract the money owed on the property(mortgage)=EQUITY

how it helps us as investors is, well if their isn't any equity and we buy the house from the seller for full asking price which happens to be the appraised value, then we take out a mortgage for the full price of the home, if you went to RE-SELL it right away their would be no profit, could possibly lose money, understand?

CANT MAKE MONEY WITH NO EQUITY, SULLY

So, would it follow that quickly re-selling a short sale purchase, would be a BAD idea?
I am pretty sure Dean writes about this in his book.

SoCal

nope, i don't think so, i mean, obviously you'll need to REHAB the property, and depending on how long that takes, if your strategy is to FLIP then i would RE-SELL immediatley after REHAB, SULLY.

I am learning so much from you. Your explaination of how to work out equity was a very clear and helpful post which puts another piece of this REI puzzle together for me.

I think Sully might have meant for you to use the Fair Market Value that you get from comps to figure up your equity. The asking price could be inflated (just like the sellers ego at times). Unless, like Sully said, the asking price is actually the appraised price.

Roni

Not necessarily.. Just remember that selling has costs associated with it.