Short sales are sometimes the best deals in the current real estate market. Even though many areas are starting to show signs of real estate recovery there are still plenty of homeowners and banks looking for a way to turn properties quickly. Short sales are often the best answer. However, short sales often come with risks. Avoid these three mistakes to make sure your short sale investment pays off:

#1 Jumping in too fast. The biggest mistake investors make is jumping into a short sale situation too quickly.  Do your research, make sure you accurately value the properties “fixed and repaired” condition, and then move forward.

#2 Spending too much time finding prospective properties. While you don’t want to rush the process, you do want to make sure you are using your time effectively. Instead of working through foreclosure listings, try contacting other realtors and letting them point you to clients who are ready to sell—even if it’s short.

#3 Expecting it to go quickly. Short sales take a long time. There’s no way around it. Prepare to hang on through a long process.

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