Real estate investors are working overtime rightnow trying to cherrypick as many profitable deals as they can get their handson.  Most investors concentrate themajority of their time on finding motivated sellers.  Once they find a seller that's desperate toget out from underneath the burden of a property they can't afford, they walkaway from the deal when they find out the seller owes the lender more than theproperty is worth.  Instead of giving upat this point, roll up your sleeves and go to work on putting together awinning short sales transaction.  Notonly is it worth the extra effort, you just might find that you enjoy thechallenges that each new day brings your way!
The market potential for short sales isbreathtaking: According to government statistics, one in eight homeowners owemore on their home than it is worth. While every homeowner in this position isn't necessarily interested in ashort sale, you can clearly see the potential for runaway profits.  Here's how to tap into the profits thatawait.
The first thing you need is a distressedhomeowner with a property worth less than the mortgage balance.  Explain to the homeowner that you can helpthem walk away from their home if you can convince the lender to accept areduced payoff.  Most homeowners at thispoint are so desperate for viable solutions that they'll jump at theopportunity.  In order to convince thelender to accept your offer you'll need to put together a short sales packet:
?    Cover letter ? Consider this your salespitch.  In it you'll explain to thelender all of the reasons you can't pay full retail for the property.  While lenders are prepared to accept muchless than what is owed, they are in the business of getting as much as possiblefor the property.  You'll need toovercome their objections by building as strong a case for your offer aspossible.
?    Sales Contract ? Do yourself a favor and findout what kind of mortgage loan the homeowner has.  If their home was purchased through FHA thelender is prohibited from accepting less than 82% of its value.  If you want to offer significantly less thanthis, find a seller with a different kind of loan.  Don't worry, though.  There are LOTS of loans out there that aren?tFHA.
?    Authorization to Release Information ? Due toprivacy concerns, the lender will require that you have the homeowner's consentto discuss their account.  A signedauthorization gives them this permission ? and they won't talk to you withoutit.
  ?    Comps ? The lender is desperate to be paid forthe property, but they still want to know what the property is worth.  Comps give them the information they need inorder to make an informed decision about your short sales offer.
?    Net Sheet ? If you've ever bought or sold aproperty before, you've no doubt seen a net sheet.  All it does is give a breakdown of whereevery penny will be going and how much money they will be receiving for theproperty.
?    Photos ? Most lenders won't have a visual pointof reference that demonstrates the condition of the property.  It's been said that a picture is worth athousand words.  It can also be worththousands of dollars.  Take the mostunflattering photos you possibly can.  Itwill lend credibility to your offer if you can demonstrate every visible flawthat the property has.
?    List of Needed Repairs ? No house is perfect andhomeowners in financial distress are simply unable to make repairs in a timelyfashion.  Go through the property anddocument every repair the property needs. 
?    Hardship Letter ? Every home has a story andevery short sale packet has to have a hard luck story.  Lenders are staffed by human beings who canbe swayed by the heartwrenching details of how and why the homeowner is in thefinancial position in which they find themselves.  There's no need to lie to the lender ? mostborrowers in this situation have a compelling story.  This is their chance to tell it.
Presenting this packet to the lender doesn?tguarantee that your offer will immediately be accepted without hesitation.  Afterall, they are in the business of turninga profit.  So expect to play a certainamount of cat and mouse.  Telephone tagand back and forth negotiations are par for the course. 
You have the upper hand in this situation.  They have to get rid of this property beforeit becomes an even bigger headache to them. If they're forced to foreclose it becomes an REO and brings with it aneven bigger set of challenges, problems, and expenses.  You don't HAVE to buy this property if theywon't give you a decent price.
You have millions of properties from which tochoose.  They have two choices: Work withyou on price or risk adding it to their growing list of REO properties.
By putting together a shortsales offer thelender can't refuse you're saving the lender and the homeowner lots ofproblems.  While you're at it you arecreating tremendous value and instant equity. So utilize the short sale to sink your teeth into some of the profitsavailable in real estate.  Get startednow and create real wealth that will secure your future.
Charrissa Cawley has a long standing reputation forexcellence as a gifted speaker, real estate trainer and wealth coach. Herstrength lies in training entrepreneurs in the areas of real estate, investingand financial literacy. Her passion is bridging the gap between learning anddoing. She has helped thousands of entrepreneurs all over the world seekingfinancial growth by equipping them with the tools, resources and specializedknowledge to succeed.  Charrissa offers accurate and proven strategies toinvestors of all different levels and is the founder of , oneof the fastest growing real estate investment training organizations in the US inaddition to , the top ratedReal Estate Investor Community on the web today.