OfflineHow are people finding properties at such a huge discount when so many people owe more than their homes are worth or have very little equity in their homes and have mortgages they have to pay off from the proceeds of the sale. Even if you use the search criteria for motivated sellers and find someone anxious to sell, they may owe as much as the house is worth and then there's no room for a discount, much less a deep enough discount to be able to assign it to someone else and still make a profit. Your input would be greatly appreciated.
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Attend your local Real Estate Investment Club and find out who is doing fix and flips. They are there and they are buying houses at a discount!! Where are they getting there properties? Auctions, short sales, probates, absentee owners, tired land lords, REOs, very few get there properties from motivated home owners with equity. Change your strategy and network, network, network with investors that are doing business! If you do not get out there and meet people and do a deal nothing will happen! Do not wait for the perfect deal, they are rare! The more you do and the more people you meet the more access you will gain to discounted properties! It takes work and an organized effort! If it was easy, everyone would be a Investor!
One other tip. Attend your local county public trustee auction and introduce yourself to the people who are bidding and buying at the auction, these people have discounted properties!
Good luck! You can do it!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
If you have the information from the owner, (hardship letter borrows authoriztion and contract for purchase), then contact the bank and speak with the asset manager and let him know that you want to conduct a short sale and where can you send the borrows info to so that it get to him. Find out his direct number for fax and phone and e-mail. Start your negotiation at 50% of the value of the home. Tell them that you like the property and why and also point out what need to be repaired and that is why your offer is so low. Then take it from there. Hope this helps, Good luck!
Keep your eye on the prize and you will thrive!