Investing in real estate can be a good way to earn some extra cash and is considered one of the easiest ways to get a large chunk of returns. For this reason, short sales in Atlanta are a good source for investors. Property rates fluctuate every now and then and some homeowners find they have to buy or sell their house for a much lesser amount to match the current market value. First, let’s get to know the basics of short sales.
Here’s an example: Mr. and Mrs. Grey borrowed $500,000 to buy a house 6 years ago. The value of the house at that time was $550,000. Mr. Grey got laid off from his company and the couple had a hard time paying mortgage. They soon realize that the value of their house has plummeted and is now worth just $410,000. The Greys turn to their lender to sell their property for $410,000. When their house is purchased, the bank obviously gets less than what the couple borrowed but considers the Greys’ mortgage fully paid.
There are umpteen people like the Greys who dread on defaulting on the money they owe to the banks. No one wants to get to foreclosure as its extremely distressing. Losing a home can be a serious hit to a person’s self-confidence along with bad credit. For these very reasons, individuals are opting for short sales to ensure that they sell their home. The lender allows them to sell for a lesser price to avoid the stigma of failing to pay their mortgage.
Short sales can be a rewarding experience for an investor if you’re at the right place and the right time. However, you need to study the market structure thoroughly and keep a keen eye on property rates in different cities. For instance, the rate of properties or homes in New York would differ from the rates in Georgia. So as in investor, an exhaustive study on these specifics boost your chances of getting a good deal on a house or a piece of land. This is one of the most creative ways of owning a property for investment purposes. It’s also considered risky as not all deals see the light of the day. However, the economy is still recovering from the 2009 recession. Many individuals are having a hard time paying their loans they owe to the bank, and any leniency at this point won’t hurt at all.
For landlord investors, this is definitely a good time to look into short sales. Just be sure to flesh out the details of the property that you’re getting and contemplate the profit you expect out of it. Speak to the lender as well as the bank and gauge the entire scenario. Take your time, take a step back and get a bird’s eye view of the entire situation. If you’re new to short sales, then you can always speak to someone who has experience with this type of deal. It’s all about how to take this forward and make sure you reap all the benefits in the long run.