Sub-2 Seasoning
Wanting to do a sub-2 flip, but am having troubles because of title seasoning. Would it work if you just quit-claimed yourself onto the title, so the previous owner and yourself are on title. Then sold it and had a contract with the previous seller that, say, 90% of proceeds are yours? Would that avoid title seasoning? I would assume this would work with short sales, as well.
Thanks,
Chase
I guess I'm confused. I thought we were talking Sub2, now you keep saying Short Sale. The two are not specifically the same, and quite often utilize different acquisition as well as different exit strategies. Then if it weren't for the short sale aspect, I'd say you're looking to assign a contract.
You could also consider becoming a licensed Real Estate Agent and start collecting commissions for putting buyers and sellers together.
Good luck, with what ever you decide,
Jeff
Chase,
Did you receive an answer to this question? I am curious about the same thing.
Never did, hopefully this bump up to the top again will help us out, though.
Quote:
On 2004-12-30 15:24, Ruman wrote:
Wanting to do a sub-2 flip, but am having troubles because of title seasoning. Would it work if you just quit-claimed yourself onto the title, so the previous owner and yourself are on title. Then sold it and had a contract with the previous seller that, say, 90% of proceeds are yours? Would that avoid title seasoning? I would assume this would work with short sales, as well.
Thanks,
Chase
I have properties available to do this on, here is one example.
Property, we currently have listed for $140k in foreclosure. We should have HomEq agreeing to take $115k(their net will be somewhere around 108k after paying commissions). We should easily be able to sell the house for $125-$130k, profiting 10-15k. The homeowners are happy to do whatever we need them to. I am just a bit "paranoid" to do it because of the fact that i have no control over the lender that the buyer is using, since they will have their own agent. That is why I was hoping to find a way that it would work with more lenders, so I wouldn't have to have the buyer backing out at the last minute because the title seasoning was an issue.
Jeff is on the right track; get out of the box and think creatively here. If you get your buyer to the point of making a serious offer and procuring financing, but it doesn't happen, you have a perfect way to save the deal and turn their disappointment into profits for you. After they call all sad and disappointed, empathize/sympathize a bit, then ask them something like, "I don't know if I can even do this (can you hear Conti and Finkel's influence here?) but what if I were able to get you into my house right away without having to beg a bank for approval, how does that sound?"
Ask them for a day or two to see what you can come up with. then offer them a Lease Option for 1-2 years, explain how this will buy them all kinds of time to find a lender who'll make it happen. The key is to create excitement and anticipation, rather than appear to be offering the booby prize. Lease Options are fun to explain, because you can generally make it sound like they're getting a better deal and more equity (which is often true) than any full-on loan in which almost all of your early payments goes solely to interest.
Yes, and that is excellent when you are FSBO'ing the house. My point is, typically while having the property listed(which commonly needs to be done anyway for a short sale), I typically do not ever get a chance to speak with the buyers. Also LO's will typically not work because of the commission being involved. Besides, I'd rather have a smaller profit now than a bigger profit in two years because of some other things going on that I need $$ for to invest in. I figured having the homeowner quit claim you on the deed, having an agreement with the homeowner that you receive 90% of profits, was thinking fairly creatively to avoid title seasoning issues. I do not mind giving up some of my profit to homeowner, especially when it is helping me out. The only thing I could figure is giving the homeowner money upon closing could be construed as fraud if you are dealing with the short sale, since most agreements clearly state the homeowner is to receive $0.
Quote:
On 2005-01-18 21:33, loon wrote:
Jeff is on the right track; get out of the box and think creatively here. If you get your buyer to the point of making a serious offer and procuring financing, but it doesn't happen, you have a perfect way to save the deal and turn their disappointment into profits for you. After they call all sad and disappointed, empathize/sympathize a bit, then ask them something like, "I don't know if I can even do this (can you hear Conti and Finkel's influence here?) but what if I were able to get you into my house right away without having to beg a bank for approval, how does that sound?"
Ask them for a day or two to see what you can come up with. then offer them a Lease Option for 1-2 years, explain how this will buy them all kinds of time to find a lender who'll make it happen. The key is to create excitement and anticipation, rather than appear to be offering the booby prize. Lease Options are fun to explain, because you can generally make it sound like they're getting a better deal and more equity (which is often true) than any full-on loan in which almost all of your early payments goes solely to interest.
In my original message I also said this would work for short sales I would think, as well. And sorry I thought I had mentioned it, but I am a Realtor and that is my point. I have the properties listed, therefore I cannot usually communicate with the buyer as far as where they should get their loan or other options available. Being an agent that does short sales, I commonly come across excellent wholesale deals, I would like to take advantage of them myself instead of passing them along.
Quote:
On 2005-01-19 16:10, jeff12002 wrote:
I guess I'm confused. I thought we were talking Sub2, now you keep saying Short Sale. The two are not specifically the same, and quite often utilize different acquisition as well as different exit strategies. Then if it weren't for the short sale aspect, I'd say you're looking to assign a contract.
You could also consider becoming a licensed Real Estate Agent and start collecting commissions for putting buyers and sellers together.
Good luck, with what ever you decide,
Jeff