Real Estate Short Sales with Phill Grove and Angela.  Through the marketing campaign she already had in place, Angela came across this Manor, Texas property with short sale potential. The owners were $20,000 underwater and their options were looking pretty bleak. With the help of Love Austin Homes, Angela negotiated with the bank to buy the property for $125,000. During the whole processes she found a buyer to purchase the property that same afternoon for $135,000. After fees Angela and Phill split a profit of $7,360, walking home with $3,830 each.

Real Estate Short Sales

Phill Grove: Hi I’m Phill Grove! And we’re having lunch today to do a little profit sharing lunch, in other words.  We just closed a deal, where we did a short sale, me, myself and my partner.  How much did we make on this deal Angela?

Angela: We made $3,680.38, each.

Phill Grove: That’s how much we made each, so actually we made twice that much. And so we’re here to give Angela her check.  So congratulations!

Angela: The first, of many.

Phill Grove: This is your first short sale, so tell us a little bit about your experience.

Angela: It was interesting, I learned a lot. It was nice to be able to help somebody. I learned a lot with, there were some surprises along the way with the title, there was a lien on it.  Worked through that and Dawn was wonderful at negotiating and getting the lender to eat some costs and we pressed in and got it done.

Phill Grove: We got it done!

Angela: Team work, REALTORS and everybody. So I’m appreciative.

Phill Grove: So your first short sale, your first flip, you first investment check from this and congratulations.

Angela: Thanks

Real Estate Short Sales

Phill Grove: One of the 12 strategies that we teach is real estate short sales.  Short sales are when you need to buy a property for less than what’s owed for it, owed on it.  In other words, there’s lots and lots of properties out there that are essentially underwater, they owe more than the property is worth.  In the past, there might not have been any way to make money on those deals as an investor, but with short sales we actually can make money on those deals as investors. Incidentally, as investors, when I teach the marketing aspects of this business I always teach you ‘we’re looking for motivated sellers.’  Of all the motivated sellers out there, some of them have equity and some of them don’t. HINT: there’s more of them that don’t have equity than do have equity.

No matter what kind of marketing you do you’re going to find real estate short sales whether you are looking for them or not.  We will show you ways to make money off of those leads.  So our student Angela was out doing her marketing that we taught her and she found a property.  The property was only worth about $150,000 but the owner actually owed about $170,000.  So the house was pretty far underwater.  And the owner had no way to sell this home and the owner couldn’t even afford to keep the payments going, going forward.  So we did a short sale on the property! We went and offered the lender $125,000 for this property, and they accepted it. And while we were negotiating to buy the property from the lender we continued to market the property and we found somebody that was willing to buy the property from us for about $135,000.  So essentially we bought the property in the morning for $125,000 and sold it in the afternoon, using a technique called a simultaneous close, for $135,000.  And after some expenses we cleared about $7,360 that Angela and I split.

Real Estate Short Sales

Because Angela had taken our training class, we offered to do all of her short sale transaction processing which we offer to everybody that takes our training class.  Angela took advantage of this because this is a way for her to make money off of marketing activity that she was doing anyway.  It does work and we made some money.

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