I am having difficulty finding an agent to help me with double closing short sales. I want to use transactional funding which means I need an end buyer lined up and no time to do rehabbing, etc. Agents have been telling me that it is unethical to do a double close, selling to an end buyer who’s willing to pay more when you just negotiated with the bank for the best price… The banks will never approve the short sale knowing there’s a buyer willing to pay more.
What’s the deal? Do double closings really work out there and do the banks care? Is there anyone out there who is doing double closings without rehabbing? Flipping it for a profit without rehabbing does seem unethical but I don’t know.
I don’t have the money to rehab or flip right now so I need to do transactional funding and find the end buyer willing to pay more without doing anything to the house. Please respond and help. How do I find the right agents (real estate and title) that are willing to do these types of transactions?
I’m in NY by the way… thinking that this works much better out of state. Has anyone been successful with this in NY… on Long Island?
What is so unethical about being the person who deals with a bank and the headaches that can go along with that, taking the property off of their loss statement and finding someone else who is ready to occupy? It’s not a question of ethics. You are getting your ‘commission’ for working with bank to get a lower price and selling at a higher price.
Assuming you are getting killer deals you should try local rehabbers that you’ve met at REI clubs, go to sheriff sales and talk to people see if any of them are rehabbers(MOST ARE), Advertise the property as a fixer upper and see who calls.
I think its totally unethical for Walmart to sell me Pepsi cola minutes after they unload it from the Pepsi truck… I dont understand why and how they can sleep at night knowing they charged me more for the Pepsi than they paid for it… After all all they had to do is unload the truck…
As the nations largest retailer they must think we Americans are stupid for falling for their unethical business practices over and over…
I cant wait for them to go out of business so the Moms and Pops can flourish… The days of long lines and limited choice are right around the corner…
You have to disclose everything these days to the lender, seller, etc. If you aren’t hiding anything, then why would it be unethical?
My purchase and sale has verbiage in it that states that I intend to sell this property for a profit, so the lenders know what’s going on, my seller knows what’s going on because I’ve dislosed it the first time I’ve talked to them.
If you’re having a hard time with agents and title companies, go to your local REIA and join. Talk to other investors and they will tell you who they use to work a short sale. Then, call those title companies, lawyers and real estate agents to work with. It’s pretty easy to find someone.
Your question does not make sense! It is completely ethical to earn a profit from your efforts of negotiating a discount on property and finding another party to buy where there is incentive to do so. This is the very foundation of America and Capitalism. If this were not ethical, then all business is not, which if course is false!!
Regarding double closings…it really has nothing to do with the R.E. Agent. It has to do with the attorney or escrow agent. Some will, some won’t. Having said that, there is one additional issue to deal with since mid 2006 and that is seasoning on the title to satisfy the lenders.
If you use private money, no problem…if you use mortgage companies, find out at the beginning from the morgage company who is financing your buyer to make sure there are no seasoning restrictions.
The other possibility, which you need to make sure the closing attorney is agreeable, is to have the original seller release you from the contract for a fee in exchange for the new buyer’s contract and be paid at the closings. I’ve never heard of any other investors in the many states that I know who have been refused a closing with this techniquie. Check your state and legal advisor before you start this process.