I am Realtor that works with investors because that is how I started in RE and I love to find bargains. The problem I am having is I negotiate a great price even lower than asking, but, when there is a short sale the bank wont allow for the investor to pull out the equity. I have one guy that told me he can do it but I have yet to work with him. Any ideas on how to go around those obstacles. I have been able to get 100k equity and when the bank sees the buyer is looking for the equity the deal falls through. Would it be better to assign the contract or some other means any advice would be greatly appreciated.
They won’t let them pull out the “equity” because for a short sale to be successful, you have to prove to the lender that there is NO equity. If you’re able to get short sales approved, then you should know that.
If your ‘investors’ want to pull money out of the deal, then I’d suggest that they either refinance once they own it, or simply sell it to cash out.
Thanks Raj. Its my first time dealing with short sales. Great advice.
Good question, Ive been doing shortsales for a number of yrs, you can not show the bank there is equity in the property if you want a shortsale to be approved, you must close on the deal and then refi or sell it. Good way is to buy it on a nodoc 95% LTV with no prepays once it closes you can resell to a end buyer or put a heloc and pull some cash out, lots of different ways. But you must prove to the bank there is no equity thats why you want them to approve your shortsale. :beer