Short Sale Investing in San Diego

Investors are searching for deals in San Diego's north county as prices drop in as low as 44% off the peaks allowing them fix and flip and cash flow opportunities. Obviously, there continues to be skepticism in the markets and rightfully so. At New Team, we put a great amount of effort into understanding the local markets and finding the deals that provide below market opportunities to offset continued downturn.

For investors looking to build their portfolio and revenues, timing the bottom of the market is not the best plan and better left for someone looking for one home to live in without specific criteria. As we know, our Real Estate market is driven on demand and with the number of savvy home buyers here, a upswing in the market could put a smaller investor out of the game too quickly to build the inventory and cash flow they desire or force them to compromise on location or quality.

The first place home buyers and investors look is in the REO and Foreclosure markets for obvious reasons. Banks discount their homes to get them off their books. However, for our patient and savvy investor's Short Sales can provide a better deal. Here are February's statistics

Homes sold in February	AVG DOM
543	52
REO Sales (%)	AVG Price/Sq ft
367	$219
Short Sales (%)	AVG Price/Sq ft
49	$198

By definition a Short Sale is when a home owner in financial hardship, requests that the lender accept a short payoff of their home loan by selling it for less than they owe. Since our team specializes in these types of negotiations we find the discounts can be deeper and the numbers of buyers are drastically reduced.

The investor who only looks at REO's will find themselves competing with multiple offers leaving less opportunity for deep discounts taking all the fun out of this Buyer's Market! A strong Short Sale Strategy allows you to select from lots of inventory, place the bid that gives you the ROI you want, and allows the bank to get another home off their books before they take their REO haircut. Better in your pocket than the bank's for a change!

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Info about the author:

Rebecca Austin is a Real Estate Broker of New Team Realty who can assist you with all your Buying, Selling or Investing needs in California. Rebecca resides in San Diego County. Rebecca can be contacted at www.newteamrealty.com or rebecca@newteamrealty.com