What Would My Best Exit Strategy Be?
I am looking to get into short sales. I do not want to buy and hold...I simply want to flip the property to a buy and hold investor. However, I know I may have problems with assigning the contract on a short sale. What is the best way to carry out what I am trying to do? Put a finder's fee in the deal??? Wont the bank frown on seeing a big fee on the deal that they just shorted?
Actually, the Bank won't frown if the see a fat assignment fee on the HUD 1.
They'll probably break out into a great big grin... shake their heads, and either toss your SS application into the reject pile.... or if your Proposal otherwise has merit, simply strike/slash the fee and issue their approval, state their minimum net recovery, and closing instructions.
If it's your intent to flip or assign without taking title.... you should learn about the mechanics of an LLC....
haha. Thanks SSPro for setting me on course. I cant wait to get your primer so I can have a little more direction instead of trying to glean the process from the forum alone. I am going to set up an LLC as you mentioned. In KY, it is so easy and cheap, too. ($40) I'd have to be crazy not to. Thanks again for sharing your wisdom with me. I look forward to the day I don't need to ask such neophyte questions.
A double close should work just fine as well.
Kelly(WI)
Thank you Kelly. I have a great title company I use as a mort. broker who I am sure could facilitate this for me.
Your end buy must enjoy that same relationship, too. It will be the ned buyer's title company, and mortgage lender that will approve or reject the title as delivered by you. Make sure that you, and your end buyer is on the same page.
Don't assume anything. Don't leave anything to chance. Stay on top of the situation.
$40 for a LLC! Wow!
Yes, $40 bucks to submit your Articles of Organization, which is simply a fill-in-the blank form you print off the State's website. Couldn't get any easier!