Question For ShortSalePro

Hi ShortSalePro,

I was reading a posting you wrote a few months ago about setting up an LLC to be able to collect an assignment fee and you said --



How would this LLC situation work?"



The LLC goes into contract to purchase the property.

The contract becomes an asset of the LLC

A new member, with cash, comes into the LLC. The buy-in price to join the LLC just happens to coincide with the amount of an assignment fee.....



You should have your lawyer and CPA set up the prototype for you.

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If you read my other post titled short sale methods, you know i am trying to figure out away to get an assignment fee of some kind without actually closing on the deals myself but assigning them to a new buyer before the close of escrow. This method seems very smart but i was wondering it if could possibly work if the new buyer does not have cash? Would a lender give them financing to buy the LLC? Any other thoughts

Comments(2)

  • webuyhousesmi17th March, 2007

    Finch.. I agree with your statement that home ownership will go down in the coming years. I think the days of a 500 fico, 0 down loan may be gone. As they probably should be. Mortgage brokers tactics are going to have to change as well. This is one mortgage brokers view of first time/ Sub Prime borrowers:

    http://thexbroker.com/blog/?p=194


    The lending tightening will have consequences for L/O as well. I think it will be more difficult in the near future getting a L/O qualified. I started to see the tightening about 6 months ago, when buyers that would have been qualified easily started falling apart in underwriting. L/O will help a T/B some.. but the banks still may tighten their lending to the point where investors may have to move to a buy and hold/rent strategy.

  • j_guidroz17th March, 2007

    Here in our market. (West Florida). we are seeing a lot of people go back to renting and less buying. The rental market is very strong.

    As a property manager this is great news to me, but on the same note I will miss the 0 down sub-prime loans that I used to fund my short sales.

    This next year should be interesting

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