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
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.
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