Many ways...

I do work as the banks representative in evaluating Short Sales..for Fee and or commission

also directly for the delinquent / defaulting borrower/ owners... for Fee and potential sale commission

also for investors interested in this type opportunity... that have CASH... for Fee and Commissions

also for Asset Management Companies for both fees and commissions

also and MOST important... for my own investments.

Each requires a marketing program element that will bring that business to you. Some can be derived from the same activities and some require very directed and specifically target marketing.

To effectively be involved in Short Sales, you need a good understanding of the mortgage processes and the foreclosure processes in your state and county.

This is a niche real estate market and not well suited for most agents. It does require a very strong knowledge of your market area, how BPO's work and the processes required to mitigate a foreclosure and what risk are involved. A really good E&O policy is recommended to newbie agent along with Broker approval of your change in business plans. You will need your Brokers approval to work this area... it is not normally considered traditional real estate activity by many brokers.

Realty Check, here is what I have found out in the last two years working short sales. I am pretty much doing the same thing you do

Work as the banks representative in evaluating Short Sales..for Fee and or commission
directly for the delinquent / defaulting borrower/ owners... for Fee and potential sale commission
for investors interested in this type opportunity... that have CASH... for Fee and Commissions
for Asset Management Companies for both fees and commissions
I have not gotten to the last step you have listed …my own investments.

It is amusing to see when I have a bank contract to contact the owner and the property is listed for sale, that the Listing agent will and does not understand that I am just here to get info from the borrower for the bank. They constantly think you are out to take their listing.

Buying-al- houses

I hope your buddy has the necessary authorizations from the now out of country defaulting owner.

If not... then he is just out $1,000 and can not do a short sale because they require the defaulted owners signature and agreement. He may not even be able to discuss it with the lender with out the necessary authorizations.

The lenders are not indiots. If the lender comps out the subject property, they will likely see the equity, if any exists, and portfolio the property. The upside in a short sale for an investor is asset appreciation, offset by carrying costs of course, or an immediate equity position.

Learn for free from this site as much as you can.
Try also this one:
http://www.realestate-investinginfo.info

Good Luck!