Working on my first deal

**ewilbur** · 11-01-2008, 09:08 AM

I'm just starting out in real estate and just put my first offer in on a house. My area was hit pretty hard so there are foreclosures just about everywhere you look. The deal Im currently working on is a short sale. Is it better to go with foreclosures or short sales? The house im looking to buy is a 4/2/2 built in 2005 w/ 2500 square feet thats in a pretty good area. the asking price was only $89,000. Would i be better off with a foreclosure? I'm just waiting on the banks approval now. Any insight will be appreciated. Thank You

Eric

**Jared** · 11-02-2008, 08:01 AM

I'm not sure if one is better than the other, each deal is about the numbers. I hear short sales can take a lot longer than buying a bank owned property or foreclosure. What do you plan on doing with the house once you buy it? Does it need a lot of work? Are you going to try to flip it, rent it, sell it on contract?

**ewilbur** · 11-02-2008, 08:22 AM

It doesnt really need any work. the house is pretty new. Im still planning on getting a home inspection as soon as its approved .. I was planning on renting it out if possible for 1200 a month, or just moving in if i can't. I'm just a little scepticule of short sales. I read somewhere that I should find out how much equity the owner has on the house then use that to make an offer. My agent told me that they usually dont take less than the asking price on a short sale but she might have been just thinking about her own interests. I know the process takes a lot longer then other deals. are there any ways to speed up the process?

**Jared** · 11-02-2008, 11:12 AM

If this property is going to be an investment then you need to figure out what it is worth to you. Forget the sellers equity, how much they are asking, and all that. Focus on what price you need to buy it for so that it makes you money, just make sure you have your numbers right. My two cents... keep the change! Good luck!