How to Make Money in a Short Sale in 2010

We know real estate and property what happened with the housing market. Values went up too much too fast, banks lend money to unqualified borrowers which has lead our current recession. Who will take advantage of this? People who are buying real estate today! Historically it has never been as good as it is today! It is Jan. 2010 mortgage rates are around 4.875 for a 30 year fixed. In some areas values are down up to 70% from years past and if that is not enough, the government is giving a home buyer an $8,000 tax credit on their purchase.

Taking advantage of this situation let tell you of my first investment of the year. I wanted to invest in N. Miami in 2005. There were these beautiful condos going for $175,000. These condos also carried a $325 association fee. This made the condo out of my budget. Since many of these condos have dropped so much in value however still carry a pricey association fee many of these unit owners have walked away from their property. These same N. Miami condos are going for $65,000 today. I purchased a condo from the association that foreclosed on the unit owners. With 20% down, I now owe $52,000 at a 5.125% rate at 30 years my payment is $283.13. With the association payment of $325 taxes $125 monthly its a total payment of 733.13. The unit rents for 1,200, that is a cash flow amount of 467. It also appraises for $85,000. Now guys, in no way am I bragging. I am just saying right now there are many opportunities like this.

The first thing I did is learn all I need to know about short sales. Everywhere you go someone will charge you for their service. All you need is a guide that show you the basics. If you ever read books like rich dad poor dad, this is the ideal market to start investing in down market real estate that they mention in these books. I encourage you to learn the steps of short sales.

2010 is the ideal year to purchase investment properties. With a short sale you can purchase properties with a deep discount. Learn all you need to know about short sales. Learn how homeowners are modifying their loans, and buying short sales.

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Your wallet will thank you!

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