Buying Short-Sales… why we don’t

As you may have noticed we focus on buying REO’s.  Early on we tried our hand at short-sales and became frustuated very fast.

The Cons:

  • Typical response time is over 4 weeks, if you get one.  In a declining market 4 weeks can mean -2% of ARV.
  • Counter-offers take the same amount of time to get a response.
  • Way too many parties involved (current owner, bank, bank who holds the second, re agent)
  • Cash offers do not seem to get the attention that they do with REOs.

The Pros:

  • Since response time is so long, you can usually walk away from any offer.

I know there are definitely people who make a living working short-sales, so they could maybe elaborate more on this list.  We have found our niche in REOs and we can get more properties daily if we need ’em.

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