My Rental Unit

Short Sales/Simultaneous close.

A short sale allows you the investor to immediately re-sell your home to another investor for a smaller but much quicker profit. This will also be know as a simultaneous closing. Once your offer is accepted by the home seller a third party buyer is found as the purchaser from you.

There are three components you need to arrange in order to do a short sale.

1. First you need to find an urgent seller, this may be someone who has an unexpected financial obligation or perhaps isn't working for some reason. The urgent seller has fallen behind on their bills or hasn't made a few mortgage payments and has defaulted. 
2. The second component is for you the buyer, to get a reasonable offer accepted. Try to remember the seller is in a bad situation and if not helped out may likely loose the home without receiving any financial compensation.
3.  And the final component is a list of investors you will go to to sell the home at a  small profit to yourself. This buy and sell is instantaneous allowing you to avoid the usual closing costs associated with real estate purchases. 

Sounds great right? There is some work involved to set this venture up. In order to find these homes at a good price you need to make an offer before a realtor becomes involved. This is where your "bird doggers" come in. They are a group of people out there keeping an eye out for homes in trouble. People who might make good "bird doggers" could be a meter-reader, delivery guy or a mail carrier. Property managers can make great ones, as the deal with large volumes of homes and investment properties. You will need to provide financial incentive to your look out team (perhaps $500). You will also need a data base of real estate investors to sell the home to. This could be achieved by doing cold calls to for rent adds. Or joining your local real estate investors groups. Find out the kinds of homes these landlords like to invest in. When you have a deal under lock, contact your list to find who might be interested. 

Putting all the components together now means your spotters have found a home in need. You have put a conditional offer on the home and before you've waived your conditions you found an investor willing to scoop it up(usually at $3000-$5000). It should be mentioned that a knowledgeable lawyer will be needed to create the contracts for this negotiation. I found it took awhile to find one who knew what I was talking about and had the skill to execute it.

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