Sale of pre-foreclosed property is often called a short sale because of the quickness with which the transaction takes place. Realtors often joke that the sale takes place straight out of a lawyer’s office. While this is an easy sale – you get to buy your dream property at low prices before they are put on the market for anyone else to see, it can be a bit tricky.
No need to worry though, real estate guru Jeff Adams has put together 5 rules to follow for a successful pre-foreclosure investment.
1. Have a Team
Since this sale happens very quickly, it is important to have your team of realtor, lawyer, banker and contractor ready. This helps in a speedy assessment of the property and your financial status, helping you to make a quick decision. Keep them informed before the sale, so they are prepared to put all your documents together as soon as possible. The guru says, he has seen sales go through as fast as five days because of a solid backing the investor’s team has provided.
2. Have Liquid Cash Ready
Most of the deals require an immediate down payment. To ensure you don’t lose out on a golden opportunity, keep cash ready to make the payment on demand. If you are unable to arrange for that amount of cash on a short notice, get a line of credit or a loan before you think of investing in a short sale.
3. Don’t Take Too Much Time
Many deals have been lost because the investors play hard to get. The bank is trying to get the property sold as soon as possible and is looking for an investor who is serious about buying. If you like a property and you think the deal is reasonable, take it! Don’t wait for a better offer unless you really believe that the property is overpriced.
4. Don’t Do It Alone
An important thing to keep in mind is that while the sale begins, the previous owners will still be living in the house. This means you don’t have the luxury of a house visit before you decide to buy the property. It is imperative that you have experienced people in your corner to advice you on the nuances of the property. Many short sales have gone wrong because people believe they can do it on their own.
5. Be Patient
The former owners of the house are usually reluctant to leave. They will look for avenues to delay leaving. Patience and perseverance will hold you in good stead and ensure you get the property of your dreams.
If you are looking for a realtor you can trust, you need to look no further than Jeff Adams. His seminars have been attended by celebrities like Donald Trump, Larry King, and Dr. Phil among others! He is also a world-renowned author so make sure to sign up for his workshops or pick up his books today!
