Question:

How to make money in short sale foreclosures?

Answer:

If you are in the real estate business, you certainly want to know how to make money in short sale foreclosures.

Imagine there are two properties in your neighborhood - both worth around $250,000 each and with very little equity. You approach the owner and find out the properties are both in foreclosure and one of the properties needs repairs worth around $5000. The other is rented out to a tenant.

How do you make money buying properties in short sale foreclosures?

Submit your bid to the bank. Chances are you'd get at least one of the properties and at least at $30,000 below market value. You could rehab the house and put it on the market for sale. After a rehab, all real estate has higher market sale or rent value. So, you either rehab the properties and flip them, or you rehab them and rent them. Both are good ways to profit from a short sale foreclosure.

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Common misspellings: mortage and morgage