I’ve got a possible SS deal and am wondering how to partner with someone since I’m so new to SS. Maybe I can partner with someone and split the profit?
Partner in what way?
Partner on the transaction so that if we want to split the profit somehow. Partner on the contracts, etc…
I do short sales in CT. Depending on what your planning to do, I can maybe help you. Are you buying it to rehab? Are you buying and re-selling (double closing)? Do you just want to sell it on the open market for a realtors commission?
Depending on the area, price, and condition I will buy some myself BUT probably the majority will be wholesale. i’m still a little confused about how the buyer process works on a SS. If I have a buyer I can just double close IF and only IF I can bring funds myself to the table to show the bank proof?? If I don’t have a buyer, then I may find a buyer when the property is listed on MLS…What if I can’t find a buyer? What do I lose and what does the homeowner lose?
If you can find a buyer, you might not need to bring funding. It all depends on your state and/or attorney/closing company. If you find a buyer or not, you will be required to buy the property if the contract is accepted, unless you have contingencies in it to back out.
Short Sale deals are pretty straight foward …
1 - Put the property under contract with the seller
2 - Contact the bank for their ‘short sale package’ and fax/mail back with your signed contract and all required ‘hardship’ documentation.
3 - Meanwhile, put the property for sale with two contingencies 1) pending current shortsale approval and b) non FHA … b/c of seaoning,.
4 - If the bank accepts your offer, and you already have a buyer on contract, tell them everything good and to plan there inspection, funding ect… then simultaneous/double close. If you dont find a buyer, you prob. didnt get a good enough deal or your trying to make too much profit and the price isnt lower enough.
4b - IF the bank denies your offer, tell your buyer the bank refused the deal and so your deal is now void. OR try to shortsale your endbuyers offer to the bank and get the sales commission (only if your licensed).
You say I may not need to bring funding but then you say whether I find a buyer or not, I have to buy the property. Doesn’t that mean I need to bring funding to every deal??
3 - Meanwhile, put the property for sale with two contingencies 1) pending current shortsale approval and b) non FHA .. b/c of seaoning,.Are these the only 2 contingencies i need? And I assume this is on standard p&s? When you say because of seasoning you mean that if I double close if it was FHA there would be a seasoning period between my close with the buyer? OR do you mean a seasoning period with the buyer?
4 - If the bank accepts your offer, and you already have a buyer on contract, tell them everything good and to plan there inspection, funding ect.. then simultaneous/double close. If you dont find a buyer, you prob. didnt get a good enough deal or your trying to make too much profit and the price isnt lower enough.
Are most of your buyers investors or retail buyers from listing it on mls?
The short sale business can get complicated quickly –– there are many moving parts; however, there’s some good information available to get started. You might try googeling The Short Sale Manifesto to get a broad overview. I found it helpful as it has some good content, although the guy who wrote it can get "promotional"at the end.