How Short Sales Saved ME & Turned Me Into A Millionaire
Back in 2001, I was making some serious mistakes in real estate—buying properties at market value and not keeping cash reserves. By 2002, things got so bad that I lost everything, including my own home. I was homeless.
But here's where things changed. During that tough time, a real estate agent introduced me to something called short sales. This strategy turned things around for me, and it could for you too.
Here’s how it works:
Let’s say a property is worth $300K, but there’s a $400K loan on it. Normally, this would be a losing deal. But with a short sale, sometimes the bank will agree to settle for less—maybe $200K. That creates instant equity.
Why would a bank agree to this?
> Banks aren’t in the business of owning property. For every $1 of bad mortgage on their books, they lose out on lending $8 elsewhere. They’d rather get something back than hold on to a property that’s losing them money.
Plus, banks don’t want the liability of owning real estate. I’ve seen them agree to short sales when properties have major issues—mold, foundation problems, you name it.
Once I understood the power of short sales, I used this strategy to buy MILLIONS in foreclosures—especially when the 2008 crash hit.
And this is just one of the five strategies I’ve used to profit from foreclosures. Short sales even have a “twin” strategy, which I’ll share in tomorrow’s post.
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Mike Ealy
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How Short Sales Saved ME & Turned Me Into A Millionaire
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