Amazing Deals through Short Sales and Foreclosures

hey everybody it’s Rich from Rich on and today I’m talking to you about the subject of how to get amazing
deals in a hot market and that’s exactly where we are right now I made a series
of videos talking about many different subjects that will help you with this
today’s subjects are short sales auctions and foreclosures let me first
talk about my philosophy on real estate Rich on is my blog which
carries my name I like to give the no BS no hype real deal on how to do real
estate and how to invest your money I’ve bought several properties through these
methods a short sale or an auction which is usually done either on the courthouse
steps or through a website and these usually somehow involve the process of
foreclosure so what is a short sale well short sells were much more common right
after the last crash but they’re still out there a short sale situation happens
when the owner of a property owes more on the loan than the house is even worth
that means that they can’t sell the house without bringing extra to the
closing and people can’t do that they can’t bring ten or twenty or thirty
thousand dollars to closing so they literally are stuck with this house
sometimes the bank or the lender will agree to sell the house for less than
the loan is worth just to get this property off the books without somebody
totally giving up on paying it all for a bank and a homeowner it’s less painful
than going through the foreclosure process how do we use this as investors
sometimes on the MLS the house will be listed as a short sale or it might be on
a foreclosure website which I’ll talk about later when you make an offer on a
short sell property certain things are a lot different for one you may wait a
long long time to get an answer from the bank why is this
they have a long bureaucratic process within their bank or their lending
institution on deciding whether or not to sell it for less than the loan is
worth it can take anywhere from a month to six months or more and I’ve waited
six months to my properties that were short sales a lot of times you just have
to jump through more hoops to buy short sales you gotta wait longer short sales
are good auctions are another good one auctions
can be a great way to get an amazing deal
options are done different in each city or you can actually go to what’s called
the courthouse steps and participate in the auction in real life often
properties are auctioned online instead of on the courthouse steps or maybe both
you just need to check how it works in your area but there are websites that
specialize in this one is auction com another is homestay and another is HUD
home store com these are just a few examples of the
websites that you can use to buy auctions now buying these auction
properties can be a pain you’ve got to jump through way more bureaucratic hoops
you’ve got to fill out more forms you have trouble inspecting the property
before you buy it it’s sometimes difficult to get utilities turned on or
maybe you can’t get them turned on to inspect the property and a lot of times
you got to come up with a lot of the cash or all the cash after your deal is
accepted so it’s hard a lot of real estate agents don’t want to mess with it
and a lot of investors don’t want to mess with it that’s why you can get an
amazing deal by using this method short sales and auctions are complicated
there’s a lot more I want to tell you about but for the purposes of today’s
video I just wanted to introduce the concepts to you if this video was
helpful give me a thumbs up hit the subscribe button hit that bell that will
let you know when I come out with new videos and leave comments or questions
below I’d love to hear from you nobody ever talks to me this is Rich on Money,
signing off!

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