I have been wholesaling homes for the last couple years. Been doing at least 1-2 a month or two. Been coming across homeowners with no equity but need repairs. My credit is not good, so I have been using a option agreement. I have a way already to get proof of funds, but what is the process of wholesaling a SS to another investor? would really appreciate the feedback. I have 5-7 good short sale candiates
How can you whole sale something that has no equity?
If you get the short sale approved, one option is to try and do a double close. Otherwise, you need to close with your own funds and wholesale it after you close.
When you talk about “no equity” I’m assuming you will be adding equity through the short sale.
Do an assignment of contract. Banks don’t care who brings the $$ to closing as long as someone does and it’s done in the timeframe you said you can close. Reo’s are the exception, you can’t assign those but short sales you betchya, just make sure you can close when you say you will.
I cant close, is there another way then double close
Im sure I will get some flak for this, but on my first short sale I got the home into contract under my name. Found a buyer a week later, and asked the lender to switch the buyer. They did it. I told the cashbuyer to come with my comission in cashiers check at closing. It worked.
If this is illegal, I was/am too ignorant to know. Since then, there hasnt been the need to do this, but my title officer said that if we had to we could have buyer put the home in contract and get my comission as a ‘forebearance fee’ on the hud.
Id like for someone to weigh on this though before reccommending this as a way to close short sales.
Gregg what did you use to show proof of funds? My credit isn’t good at all. I cant find HML that will loan on the property and not my credit in Indianapolis, IN. What type of contract did you use
I didnt show my proof of funds in the case that I just mentioned. I asked the bank to switch the contract to the buyers name, so I used his proof of funds. I put my comission as a forebearance fee on the HUD.
If you are comfortable doing it, you could just find a mortgage companys letterhead and write your own proof of funds.