Wholesale Buying and Selling of Bank Discounted Properties

I find buying and selling of bank discounted properties in the Hudson Valley to be one of the most reliable and safest ways to invest in real estate. To be successful means you have to be good at both sides of the buy/sell equation. As an investor that specializes in short sales, I sell more than I buy these days because I hold onto many of my own deals. The formula I use is that if there is enough "meat on the bone" I wholesale it to someone so there is profit for them as well in their endeavors. If the deal is a bit tight, I hold onto it, do the rehab and find an end buyer myself.

All this requires a good working knowledge of a number of facets of the rehab process including property evaluation, cost to re mediate and ARV, the after repair value of the property. When I see a property I’m interested in, I will pull comparable sales on it to see how it stacks up with similar properties in the local market. If it looks like a prospect for a short sale, I approach the homeowner and inform them of all applicable laws and options they have. I then ask if a short sale is something they want to consider. If the answer is yes, I put the home under contract and submit the short sale package to the bank. Once I have a sense of when and for what the short sale approval will be, I begin marketing it to investors and end buyers.

Some of my "blue ribbon" investor’s might already know about the home and take it off my hands as soon as it becomes available. I present all pertinent information about the home including repair costs (with contractor estimates) the time frame for the rehab, and the ARV, or "after repair value". In this business, the rule of thumb is to price your property just below the average price of comparable properties with one VERY big exception. That exception is that our finished product’s quality is far greater than the rest of the inventory in that price range. The successful investors know this golden rule and their finished properties sell fast in any market, up or down.

While this all sounds closed door and secretive, it’s not. I frequently have inventory available to the new rehab investor and/or end buyer who are looking for bargain properties and want to get a really good value on a home. Especially in this market, buying properties from a wholesale investor is a very good hedge to a tumultuous market. Such a strategy insures equity in the property, a cushion to profit margins and a healthy equity stake a bank or private lender financing the home. In fact, this is a great market to be buying real estate with interest rates still very low and housing prices lower than we have seen in a very long time. Click on this Free Report Link to receive a comprehensive report about buying bank discounted properties, wholesale buying of properties, and trends in real estate and much more.