As an active real-estate investor you will come across properties with little or no equity. The amount owed by the property owner exceeds the market value of the real estate. Most real-estate investors walk away from these properties. However, it is possible to make a profit from properties with little or no equity. As an investor you can proceed with what is known as a short-sale investment. The short-sale investment occurs when the outstanding obligations — all the loans against a property — exceed what the property can be sold for. In these situations lenders are sometimes willing to accept less than the full amount due.

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  3. Making Money with Short Sales
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