Does anyone see any red flags with this:
A realtor does a short sale on a house that he wants to buy for himself. But, he can’t buy it from the bank directly, so he gets his investor friend to buy it all cash and then resell to him at the same price a week later.
What do you think?
Why cant the realtor buy it directly, is he related to the owner? I dont see any reason why an unrelated person, realtor or not, cant buy the short sale…but always ask a lawyer if you are not sure.
Not related, but there’s a conflict of interest if I buy a short sale directly from the bank. They’ll reason that I didn’t do my duty to obtain a better offer.
In my case, my better offers backed out or had too many contingencies, and then I realized it’s a great price for me so I became interested.
In retrospect, I should have had an all cash purchase from the bank via a LLC and then have the LLC sell it to me, learned my lesson.