Most of the real estate investors find it difficult to deal with no equity deals. With some basic skills and tricks, you can master the art of making profits from no-equity deals. 

In real estate industry, finding deals with equity is a nationwide problem. Moreover, most investors do not even know how to deal with a no-equity deal. That is the reason why they just prefer to walk away rather than putting any effort to make the deal work. However, if you know certain secrets, you can make a few simple calls and turn your time into cash. In fact, if you walk away, you are not just walking away from the deal but from the money also that you could have earned by just making small efforts. Unlike the popular belief, it is very simple and easy to make money in an industry where great deals are tough to come by. The following explanation will certainly help you understand what the techniques to follow in such situation are and how to make the best out of it. 

Take the Homeowner under Control
Remember, banks are not in the business of owning property. When a no-equity property is in the foreclosure process, you cannot buy it directly from the bank because it is only after the courthouse sale that the bank gets the ownership of the property. However, you can finish the foreclosure process by buying the mortgage instead of trying to buy the property. The bank always likes to short-sale a mortgage than going to the courthouse steps. For doing this successfully, you must the homeowner under your control. If you are planning to short sale mortgages, keep in mind that you have to work hand-in-hand with the homeowner. 


What is short sale?
If you plan to short sale a mortgage, it means that you want the bank to accept an amount less than what is owed as payment in full. Next point will help you understand it more clearly.

Perform a Short Sale for Mortgages
Now that you have an idea of what does short sale for mortgages mean, here is a brief description of how to perform the same, and to turn a no-equity deal into an easy way of earning good money. Once you have planned to short sale the mortgage, contact the mitigation department of the bank that handles properties in foreclosure. Convince the concerned authority that in order to help the homeowner with his foreclosure, you want to buy his property. Bid a specific amount saying that the property is in very poor condition. 

In order to support your claim, you must fax the sales contract for that amount, along with some very bad pictures of the property and an extensive list of repair that you think are needed to bring the property up to marketable condition. Wait for the bank to review your offer and information and to reach a decision. The bank may contact you to increase your bid to a much higher rate. Do not accept the higher rate instantly rather counter again. Increase your bid a little and try to convince the bank again that the property is in real bad condition. After one or two counter, the bank will accept your offer. That is it. This is all it takes to short sale a mortgage. This way, you can short sale many mortgages every year. Now decide yourself, what can be the easier way than this to become wealthy.

A Real Life Example of Successfully Dealing with a No-Equity Deal
This is an example of a prudent investor, who comes across a dilapidated property valued at $10,000,000. It needed several thousand dollars of repair, and had a mortgage of somewhere around $90,000. Now here is what that prudent investor did. He first offered the bank $30,000. The bank refused the proposal. After a few more negotiations, the deal was finalized at a short sale of $35,000, that is, $55,000 as payment in full. He quickly wholesaled the property at $60,000, and in less than a week, his bank account became heavier by $5,000. If only, he could have put a little more effort, he might have found a better offer. Anyway, $5,000 is also not that bad. 

As we can see in the above example, how a prudent investor turned a No-equity deal into moneymaking real estate deal. You just need to have a firm grasp on creative real estate investment, and you can clinch a much better deal. It is very easy to find a foreclosure, as there are so many out there, and in most cases, the homeowner owes what the property is worth. Follow the above ‘tips?and use this easy way to make a lot of money for you.

 

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