Short Sales are one of the most effective techniques for discounting loans in real estate. Short sales create huge investment opportunities and are a must if you want to be competitive in this market.

Here are 10 frequently asked short sale questions that are very helpful especially if you are just getting started or considering short sales as a means to acquiring pre-foreclosures.

To be successful in real estate I always preach to the masses that you have to be significantly better and significantly different than the next person. That "next person" is called your competition.

As we all know certainly the most appealing aspect of the pre-foreclosure business is the concept that lenders will take less than what is owed on a loan in default. Oddly enough, the tasks required to get a short sale approved can be the most unappealing duties we as investors must handle. So we have two choices: "A": Avoid Doing Short Sales, or option "B" Figure Out the Easiest Way to Complete this Process. I'm assuming, for illustrative purposes, we have all chosen option "B". Thus, lets begin some important observations about the short sale process:

When the real estate bubble bursts you can protect your capital gain by using stock market short sales.

In the event that you (the seller) have purchased, or refinanced the property in the last few years, you may have little to no equity in the house. This common situation will stop many investors from even making an offer on your house, because they don't believe there is enough equity in the deal to make it work.

As investors negotiating a short sales we want to control the entire process as much as possible. This is especially true when trying to influence the Broker¡¯s Price Opinion (BPO). When speaking to the lender, appraiser, or realtor it is best to seize control of the situation quickly and smoothly so that you may influence the value of the home. Influencing your BPO or appraisal value of a home to its lowest possible point is the best way to increase your profit spread in the entire short sale process.

You open up your morning paper to find that your bank has been audited and that their credit rating has been lowered. A little further reading and you find out that they have millions of dollars in bad loans. You turn on your television to watch the news while eating breakfast only to find out that the same bank¡¯s stock is down, and that investors will be selling the stock heavily throughout the day.

A common mistake with new and experienced investors alike is to ask the lender IF they will accept a short sale on a property. When you make contact with the short sale department for the first time, all you need to do is order the package. And when you order it you should ask them to FAX it to you. Don't ask them to mail it to you, as you can't afford any delays.