Four Common Short Sale Mistakes to Avoid

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. For today's quick video I will be covering the FOUR common mistakes made when investing in short sales…

1. Short Sale Process

1. Do you know it – Broker's Price Opinion (BPO), what goes into a short sale package, preapproval letters – Any piece of the pie that is missing will delay the short sale process.
2. The more you know, the easier it is for you to negotiate with lenders, qualify your realtors, and set expectations.

2. Paying Too Much / Paying Too Little

1.  Research the property – comparables – before making offers — repairs, fees, etc…
2.  Banks are aware of the market

3. Inexperienced Listing Agents

1. How many short sales have they worked on/completed?
2. If they haven't done many short sales, then how will they sell your property quickly?
3. Negotiations – a big part of short sales is the negotiation – your realtor speaks on your behalf

4. Inspections

1. Hundreds of dollars could save you thousands ($175-$300)
2. Homes sold as-is – unless you are comfortable with assessing repair costs, I would highly suggest signing an option period

Investing in short sales can be very profitable if you are familiar with the process, but it is very easy to miss steps that could either delay the closing process or cost you thousands of dollars in headache. So be sure to do your research and talk to your local short sale realtors and brokers.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.