How Much?

Hey, how much do you guys typically try to profit from a short sale transaction? Just curious.

Thanks,
Mitchell

Comments(2)

phaireone28th November, 2003

I usually start off with 50%of appraised value Justified by the amount of repairs to put the house in excelent condition plus 20% for profit.
TheShortSalePro28th November, 2003

I firmly believe that shorts have great potential. But they have to be worked for maximum yield.

My business model includes an acquisition discount, but also calls for value added components... rehab/renovation, etc.

Short acquisition to my thinking is the first step in manufacturing a profit center.

Personally, I don't do very many. I spend a lot of time working shorts for those that don't know how, or don't want to waste their time reinventing the wheel and find it simply a cost of doing business to have their shorts professionally prepared, presented, and negotiated.

But the shorts I do pursue must have promise for greater profit potential... I put a lot into my Proposals because I really want the property I selectively target. In most cases, a few thousand dollars one way or the other on a purchase price isn't going to sour my deals.

The real money comes later in the process.