I just talked with the lender and they will accept $53,300 on a property I am trying to short sale. The home is easily worth $77,000. I am sure I could find a homeowner to purchase this home, but not sure exactly how I can do that. How do I go about sending in the final documents to the lender for my purchase price from them and then turn around and sell it to a homeowner, etc. How would I payoff the bank and complete the transaction and make my profit?
In your opinion, what would be the best way to sell this and give the bank their money?
I don't understand what all the hubbub or confusion is about short sales.
The lenders seem to be willing to deal these days if the offer isn't insultingly low, in fact, I 've found the lenders to be quite cooperative.
Through my Loss Mit biz, I found an $89K house with a $46k pay-off. The home is pending auction on Jan 6th.
I offered the bank $41K cash w/i 24 hrs after their approval - faxed them a copy of the sales contract, approved funds letter and a HUD 1. They ordered an internal BPO ( the same day) to support my claims of massive deferred maintenance - walls, carpet, foundation, etc.. and POOF it was done.
Most of what I read in this forum relates to how difficult it is to effect a short. What are some of the problems most of you incur in this endeavor?
Once you learn how to influence the BPO and have a firm exit strategy, it really is a simple approach.
However, for those who have not done a SS yet, the small things can seem Much larger. The biggest problem that people ask me about is how to fund them. It doesnt do any good to get a SS approved and not know how to get it closed!
But as long as people ask questions, here, it is a pleasure to assist them !
Hey, Kid. It wouldn't surprise me if I answer your question pretty much the same as I did before.
Go to your network of Buyers and sell them on the deal... What? You don't have a network of buyers yet?
If you don't have the resources to close your own deals, then you are approaching this niche bass ackwards.
The short sale approval window is usually 30 to 45 days. If you are trying to combine acquisition techniques (short sale AND flip or assign) you've got to have your exit strategy in place,
You might have placed the cart before the horse.
Over the last year or so on this board, I've tried to help people develop a career, not just a hobby. If you are serious, you really ought to have a business plan, and you really need to follow your busines plan.
If not, you are simply playing darts... thowing something up and seeing what sticks. That's a hobby. Not a career.
I've got the cash to close, but what I was wondering is if there was a way to sell the home to a retail buyer without me paying first, closing and then turning around to sell to retail buyer.
ShortSale and BAMZ, I agree completely with what you are saying. I have a network of investor buyers but I was looking for more retail buyers instead. I am going to start marketing asap on the property and see what can come of it.
set up your LLC
the LLC as the named Purchaser
take in a new member (your Buyer)
exact your fee from the new member
the new member would acquire the property from the LLC.
Thanks alot
What I was asking is this:
I just talked with the lender and they will accept $53,300 on a property I am trying to short sale. The home is easily worth $77,000. I am sure I could find a homeowner to purchase this home, but not sure exactly how I can do that. How do I go about sending in the final documents to the lender for my purchase price from them and then turn around and sell it to a homeowner, etc. How would I payoff the bank and complete the transaction and make my profit?
In your opinion, what would be the best way to sell this and give the bank their money?
Thanks,
Christian "The Solutions Kid" Beebe
[addsig]
Christian,
I replied to your PM. If you have any further questions, we'd be glad to help!
Good job and getting the SS approved!
BAMZ
Wouldn't a double closing be easiest? Assuming you could find a title company who wouldn't mind doing it. If not, find a lawyer who will do the DC.
Is that correct or incorrect?
Brandon
I don't understand what all the hubbub or confusion is about short sales.
The lenders seem to be willing to deal these days if the offer isn't insultingly low, in fact, I 've found the lenders to be quite cooperative.
Through my Loss Mit biz, I found an $89K house with a $46k pay-off. The home is pending auction on Jan 6th.
I offered the bank $41K cash w/i 24 hrs after their approval - faxed them a copy of the sales contract, approved funds letter and a HUD 1. They ordered an internal BPO ( the same day) to support my claims of massive deferred maintenance - walls, carpet, foundation, etc.. and POOF it was done.
Most of what I read in this forum relates to how difficult it is to effect a short. What are some of the problems most of you incur in this endeavor?
C-
C -
Once you learn how to influence the BPO and have a firm exit strategy, it really is a simple approach.
However, for those who have not done a SS yet, the small things can seem Much larger. The biggest problem that people ask me about is how to fund them. It doesnt do any good to get a SS approved and not know how to get it closed!
But as long as people ask questions, here, it is a pleasure to assist them !
Best of Success!
BAMZ
Hey, Kid. It wouldn't surprise me if I answer your question pretty much the same as I did before.
Go to your network of Buyers and sell them on the deal... What? You don't have a network of buyers yet?
If you don't have the resources to close your own deals, then you are approaching this niche bass ackwards.
The short sale approval window is usually 30 to 45 days. If you are trying to combine acquisition techniques (short sale AND flip or assign) you've got to have your exit strategy in place,
You might have placed the cart before the horse.
Over the last year or so on this board, I've tried to help people develop a career, not just a hobby. If you are serious, you really ought to have a business plan, and you really need to follow your busines plan.
If not, you are simply playing darts... thowing something up and seeing what sticks. That's a hobby. Not a career.
I've got the cash to close, but what I was wondering is if there was a way to sell the home to a retail buyer without me paying first, closing and then turning around to sell to retail buyer.
ShortSale and BAMZ, I agree completely with what you are saying. I have a network of investor buyers but I was looking for more retail buyers instead. I am going to start marketing asap on the property and see what can come of it.
Thanks,
Chris
[addsig]
One school of thought.......
set up your LLC
the LLC as the named Purchaser
take in a new member (your Buyer)
exact your fee from the new member
the new member would acquire the property from the LLC.