In selecting classes I had a wide variety of investing strategies on which I could focus. Based on where the market is I chose to study the short sale strategy. For those of you wondering, “what is a short sale?” let me first say I’m a little surprised you’re reading this blog! However, to clarify, a short sale is when a homeowner is behind in their payments, for whatever reason, and a third party, either a Realtor or a private investor like myself, negotiates with the bank to buy the property at a discount. In other words the bank is shorted some of the money owed, hence the name.
This strategy allows the homeowner to avoid a foreclosure on his/her credit report and usually completely absolves them of the debt owed; it gets the property off the banks hands (they do not want to take properties back!) and gives me, the investor, a property that I can either cash flow by renting to tenants or, if it needs repairs, fix and flip it for a profit. NR taught me every step of the process in intricate, and legal, detail. From finding distressed properties and how to speak with the owners, to what kind of paperwork is needed and how to fill it out, to negotiating with the bank and handling a BPO, to building a team to handling a closing: they covered it all.
In addition to short sales I took a class on legal strategies as well as tax strategies, both of which were invaluable in showing me how to protect my assets and mitigate my tax liability (within the boundaries of the law people!). Armed and enthusiastic, which is just as good as dangerous, I returned to Chicago ready to track down a distressed property!
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