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Short Sales: How to Make Money on Houses with No Equity

by J.P. Vaughan   

For the average real estate investor, 8 out of 10 properties you find have no equity in them. And since equity is critical to making a profit on any deal, no equity, no deal. Right? Not true.

The experienced real estate investor who expects to make big profits and really win at the real estate investing game understands how to create equity in properties that have no equity. This ability is what separates the top investors from the rest of the pack.

Short Sales: the key to making money on no-equity properties

The best way to make money on no-equity properties is through "short sale" strategies. In a short sale, the investor negotiates with the lender who holds the mortgage on the property to buy the property for less than is owed.

For example, if a homeowner facing foreclosure has a $200,000 mortgage on a house worth $200,000, most investors will just walk away from that deal because it has no equity. Experienced real estate investors know how to approach these lenders and negotiate the sale of the property for an amount less than what is owed (a "short sale") in order to create equity in the property. That way the lender is at least able to get some of the money they were owed, while the investor now has a profitable property.

Get the training you need to become a short sales expert

CRE Online's courses and books can help you become a "short sale" negotiation expert. The courses offered in the CRE Online store have been chosen for their accuracy and clarity and are offered with a risk-free 60-day guarantee.

And when you have studied that material and are ready to make your first deal, our CRE Online experts are standing by to answer your questions and give you the advice you need to make a big profit.

Highly Recommended Courses:

7 Steps to Profit with Short Sales

Short Sales Step by Step

About the Author:

j.p. vaughanJ. P. Vaughan founded Creative Real Estate Online (www.creonline.com) in 1995 and has been the Publisher since then. She is the author of How to Buy Your Dream House for 1/2 Price (Quantum Publications 1994, out of print). She is also an attorney who practiced law in Michigan until she started investing in real estate full time in 1988.

J.P. is very proud of her daughter, Jeanne, who has been working with CRE Online since 1998 and is the Editor and Director of Operations.

 
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