(NOTE: Want the absolute EASIEST way to find houses at 50% off their value? Learn more with our latest this special report.)
Today I've asked very clever investor Cody Sperber to give us a crash course on one of his signature real estate deal models, the Reverse Short Sale.
Now for those of you who don't know, you should read Cody's bio. He is a man of many talents.
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This guy's a Navy vet turned real estate guy for 8+ years now.
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He basically started out sitting at his laptop in his girlfriend’s kitchen, wholesaling properties to a small email list he managed to finagle together.
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After a few years he eventually figured it all out, and flipped around 250 deals worth around $45M or so.
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And currently does 5-10 deals/month.
Cody’s done all manner of deals at this point, and in my view, really excels at innovative thinking and beating the ever living pants off his competition. But one of the coolest things he does are these reverse short sale deals.
The Quick Back Story:
So the Reverse Short is a low risk, high return investing strategy that basically involves the Arbitrage Principle of inserting yourself into broken short sale deals, providing some unique value, saving the day, and ultimately getting a compensated handsomely for it.
The whole thing came about in a “light bulb” moment one day, while Cody was working his traditional short sale machine. Making great money, sure. But also working his tail off.
So one stormy day, after yet another deal went kaput, Cody asks himself, conscious mind to subconscious…
“Man, should I still even be doing this? I mean, why the heck am I working so hard doing short sales the old fashioned way, constantly fight with the banks, competing against a million other Realtors and investors, and still having deals fall through?”
(Continuing the conversation with his subconscious…)
“…Wait.… Why not flip this thing around? Holy moly. What if instead, I go after the bajillion properties where the short sales were already going south? So instead of doing all the dirty work, why not just work the deal backwards, save the day and make even more profit?”
Blamo! The Reverse Short Sale Was Born.
It sounds super fancy, but it's really pretty darn simple. When you’re marketing for sellers, you’ll run across all kinds of situations, right?
Well, what happens if you have a lead that comes in and the seller really wants to sell but the house is listed with a Realtor and is in the process of being short sold?
This tee’s up the perfect situation for Cody’s method.
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You don't need to use any of your own money
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You don't need good credit or to take any risk really
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You don't need to negotiate with a bank
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You don't need to spend any money on marketing
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You don't need to find a buyer for the property
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You don't even need to know anything about traditional short sales
Sounds crazy, I know. But you’ll understand when you wrap your little mind around our “primer” for how the reverse short sale works.
Enjoy…
From Cody Sperber, Deal-Getting Advisor...
{Mogul Elite: Download an MP3 and transcript of this entire video in the Power Pack tools for this lesson.}
If you want to follow in Cody’s footsteps with this, here are the steps:
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Search local MLS for pending short sales
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Contact Listing Agent
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Send reminders to agent
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If short sale is declined, get in touch with the buyer’s agent
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Have the buyer’s agent get you in touch with the buyer
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You must understand your local auction process
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Get a commitment
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Fully disclose the deal and pre-sign paperwork the day before auction
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Bid on the property at auction
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Use internal funding or get the funds
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Fund the property at auction
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Make sure the buyer get their loan
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Deposit paycheck
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Learn more about reverse short sales from Cody at CleverInvestor.com
Cody Sperber
is founder and CEO of www.CleverInvestor.com. He's successfully closed many different types of real estate transactions including wholesale deals, short sales, multi-unit, subject to, lease options and my own proprietary investing strategy, the Reverse Short Sale. As a new investor he quickly gained a huge competitive advantage by mastering online lead generation, building one of the most successful real estate investing firms in the Arizona market. His companies have bought and sold hundreds of millions in properties and closed hundreds of real estate transactions. Before real estate, Cody served in the Navy and attended Arizona State, and he is now married to his best friend and has two beautiful children (Hudson and Brynlee).