Short Sales

Short Sales Short sales refer to the sale of a distressed property, where the homeowners are behind on mortgage payments and they’re facing foreclosure.

A short sale involves the sale of the property for a price that’s less than what the property owner owes to the bank. So the sale comes up “short” on covering the total amount due to the lender.

The bank must approve a short sale offer before the sale and proceed. Generally, the property owner is released from further obligation to the lender once the short sale is approved.

Short sales are typically performed in a very prompt manner. The haste with which these real estate transactions are performed results in a sale price that’s typically significantly less than the property’s actual market value. Therefore, many investors will purchase short sale properties, which are then re-sold as-is for a profit.

Purchasing short sale properties can be very profitable, especially for those who are involved in flipping and rehabbing. Flipping and rehabbing involves performing repairs and upgrades to the property in order to boost its market value. This increases the profit margin.

The only real risk is the fact that you’re tying up capital in a property, so recovery of your investment funds (and profit) is contingent upon the sale of the home.

If you’re ready to get involved in flipping and short sale investments in Arizona, turn to Karen Abinet and True Wealth Holdings LLC. You’re invited to complete an investor profile form to get started.