Real Estate Wholesaling Made Simple

What is a real estate short sale?

A short sale occurs when you negotiate a sales price less than what the seller actually owes on a property. In other words a short sale is when a bank accepts less than what is owed on a property to keep the property from going through the foreclosure process. Instead of negotiating with the seller you negotiate a sales price directly with the bank. An example would be:

A seller has fallen behind on their payments to the bank. The seller has a mortgage note with the bank for $200,000. You write an offer of $150,000. If the bank decides to accept your offer you would have “Shorted the bank” $50,000.

The banks would be willing to accept a loss of $50,000 for a couple of reasons:

1. Banks are not in the business of owning homes they are in the business of loaning money.

2. If the property ends up going up for auction the banks will incur many more fees plus they may lose the opportunity to loan out the money that would otherwise be tied up in the property.

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Eric Medemar is a real estate investor from Grand Rapids, MI. Be sure to get your Free Guide To Real Estate Wholesaling. You can also view Erics real estate investing guide here.

Get your FREE Report “6 steps to wholesaling real estate” at www.TheForeclosurecollege.com

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When you are not living your life in the present moment you are living in either fear or regret. Fear of what might come in the future, regret about what happened in the past or a bit of both. Something that you might find very interesting, yet frustrating as well, is the way we use our present moments. In many cases you use your present moments fearing something in the future, but when you arrive in that future you were fearing, you live in regret of not being present in the past moment that you spent fearing the moment that you are currently in. Is your head spinning yet? To clear things up a bit I will give you a real life example.

Present Moment: A new mother is sitting at home worrying about going back to work in 6 weeks and leaving her precious child with daycare.

Body: Sitting with her new born child in the living room breast feeding.

Mind: Projecting into the future 6 weeks when she has to go back to work and needs to leave her child at daycare.

This cycle of picturing that sad day occurs daily up until the moment that the new mother needs to go back to work. Then it goes like this.

Present Moment: Sitting in her office getting ready to work on a new project.

Body: At the office, behind her desk.

Mind: Looking back over the past 6 weeks regretting that it went too quick and she doesn’t remember much of the time spent with her newborn.

Can you see the problem with not being present? By not being present the new mother spent her time with her newborn worrying going back to work. When the new mother finally had to go back to work she spent her time regretting not being mentally present with her child because she was mentally already working. Now that she is actually working she is spending her mental time back with her child. Her body and her mind were never merging into the same space.

Are you guilty of the same thing? Is your body at home with the family, while your mind is at work? Once at work is your mind back at home with the family?

One of the easiest ways to merge the body and mind is through gratitude. In order to be grateful for the things that surround you, you must be present to enjoy them. To practice gratitude simply stop for a moment and look around you, I am sure you can find something you are grateful for.

If your at home with your family look at your wife and kids, what could you love about them?

If your at the office what could you be thankful for?

If your out fishing what could you enjoy about the moment?

Notice that I don’t use the word should. The word should can lead to feelings of regret because you are saying that you don’t enjoy something, yet you know that you should. I don’t use the word are because it is way to easy to answer with nothing if you happen to be in a foul mood. The word could is a possibility word. You can’t get regret from could, you can only get the feelings of hope or choice. So the next time you find yourself not merging the mind and body together in the present simply ask, “What could I enjoy about this moment and the people or places in it?”.

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Eric Medemar is a real estate investor from Grand Rapids, MI. Be sure to get your Free Guide To Real Estate Wholesaling. You can also view Erics real estate investing guide here. Eric is also a contributing member to The Real Estate Investing Forums at www.themillionaireuniversity.com

Get your FREE Report “6 steps to wholesaling real estate” at www.TheForeclosurecollege.com

Get your FREE Report “5 Easy steps to becoming a real estate bird dog” at www.BirdDogBiz.com

Even in the slowest of markets you can still make money in real estate wholesaling. Even in “Bad locations” you can still make money wholesaling real estate. Here are a few of the deals that I have done in Bad locations:

A few of My “Bad Location Homes” have been like this:

paid 26k, repairs 5k, rented $675, sold for $62k
paid 38k, repairs 5k, rented $1000 (2 unit) sold for $62k
paid 33k, repairs 5k, rented $675, sold for $62k
paid 30k, repairs 12k, rented $675, sold for $62k
paid 30k, repairs 10k, rented $675k, sold it for $62k
Total paid $157, Repairs $37k, Sold $319k Gross Profit $125k

These are all homes that anyone could have bought, but they were in the “bad areas”.

Im beginning to think that “good areas” might be “bad areas” for the wallet.

Look at the cash on cash returns.

Good area= 15000/100000 =15% cash on cash return

Bad area= 20000/40000= 50% cash on cash return

Good area rents $800 on $100,000 home .08% return on Rent

Bad area $675 on a $40,000 home 1.6% return on rent

But wait, your thinking bad area bad tenants, good area good tenants, right?

Wrong. Bad tenants are bad tenants ANYWHERE, good tenants are good tenants ANYWHERE.

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I am often left perplexed at peoples ability to pass the blame of real estate investing courses not working for their failure as an investor. In reality, most of these people never used any of the ideas to see if they worked or not. To them I dedicate this story.

Mother came home from work to find her son frantically searching the house looking for his roller blades. You see it was the first nice day of spring, and he was just dying to get out on his roller blades. The mother and son began tearing apart the house searching high and low for the elusive roller blades. They started in the garage and worked their way through all of the closets in the house eventually stopping in the attic. The roller blades seemed to have vanished into thin air.

Finally the mother looked over to her son and said “Do you remember the last place you saw your skates?”

To which the son replied “In the basement next to the furnace”.

Mom then went on to ask “Well did you try looking there?”

No said her son “The light bulbs burnt out in the basement, it was way to scary to look down there”

Mom grabbed a flashlight and headed downstairs, the roller blades were exactly where he had left them.

How many times are you looking everywhere else but the “scary place” for the answers to life’s problems? You know the scary place in your head.