what are the best options for selling a short sale to an end buyer who will obtain financing???
Best strategies for selling to an end buyer who needs financing
Heres all the options i can think of off the top of my head.
- Fund it yourself and sell at later date.
- Fund with hard money and sell at later date.
- Assign Contract.
- Simultaneous closing. (Dry Closing)
- Go into contract with back-end buyer to purchase property and have them pay you in a private transaction to back out during escrow leaving them on title. (Not sure of the legalities on this option you might want to check with somebody) But it works. Lol.
Please explain the dry closing in a little more detail. How does it work and how does it get around the seasoning issue??
there is another way. You can take an option on the property from the first seller. They record a memorandum of option with the clerk which gives you an equitable interest in the property. This will enable you to sell the property to the end buyer and the fact that you have an equitable interest will allow them to get financing. Find a hard money lender or a private investor that will fund the first deal with the title company. Schedule a simultaneous closing so that the lender funding your deal will never have his money leave the title company. You should be able to get a lender to do this for 1 - 3 points as he has zero risk as long as the funds from your end buyer have been deposited with the title company.
It is a little more compicated that this but this is the basis of the deal.