What a Newbie Wants to Know About Short Sales and Property Flips

How do real estate investors work with agents who misunderstand concepts on dealing with short sales? How do they explain fiduciary duty to agents, overcome their objections, and have them refer all their deals and make 35,000 per month without a marketing budget? These are just few of the questions that a newbie investor would want to know from someone doing a real estate investing specifically on short sales.

Now, fiduciary duty is the most misunderstood concept for realtors who do short sales. And you got the word mortgage fraud news. And then it talks about Fannie Mae has become a new variant of property flipping involving pre- foreclosure short sales. There are also the so called right way and wrong way of doing short sales. You can actually get some info on these from a lot of sources available nowadays, using the Internet to find a coach is just one of the many options. This enables anyone wanting to engage in this business to dig some details, what to know and where to start. You can also get advice on short sale transactions.

Strategic Real Estate Coaching that specializes in teaching people about short sales is also available nowadays. One of the strategies mentioned by many experts involves two basic things to check when dealing with an appraiser on a short sale situation. These are the copy of the purchase and sales agreement and the copy of the recorded notice of option. The biggest issue that you run into with short sales and with real estate agents and investors, bankers, brokers and mortgage people is "short sale flips are illegal".

Note that using a power of attorney in a short sale transaction will get you into a world of confusion and hurt. Most reputable title companies will not recognize or permit anyone involved with the investor buyer to use a power of attorney on behalf of the seller. Most or every title company that closes a lot of short sales and transactions insists on the actual seller showing up for the closing. Take note also that property flips are not inherently illegal and not all transactions involving a rapid purchase and resale are improper.

If you are serious about getting into this business, it is important to understand what a legitimate short sale is. Some indications of property flip transactions that may be legitimate include the sale of properties that the property seller acquired at below market value such as a short sale, where the increase in the sale price over the property sellers acquisition cost can clearly be shown to be the difference if any in the market's reaction to distress sales in a typical arm's length market sale.

David Montelongo who was featured in A&Es hit reality show "Flip This House" is hitting the road to teach aspiring Real Estate investors How to Invest in Today's Market. Now he's coming to show you exactly how he made a fortune! Get more info on David Montelongo Real Estate Investing Seminar at http://www.montelongoseminars.com