let me know your thoughts
I would have to say YES!
If you are the once doing the shortsale: Once you get BPO from the bank then just add your fee and market the property to your buyers.
If you find a shortsale: If you get a short sale from he MLS you want to work with a Realtor who is investor friendly. You would then market the property to your buyers before getting a contract on the short-sale with the Realtor. You want to at least have 3 buyers before you make an offer. Also plan to have an exit strategy just in-case.
hope this helps some
make sure you have some actual, qualified buyers lined up prior to the closing date. they will more than likely need to be cash or hard money buyers
So the bank will pay a fee for the short sale negotiations? How much?
The basic answer is yes you can do this, but there are some real issues that must be solved 1st.
Your end buyer must either buy the property via cash or a private money or hard money. They will not be able to use FHA, Fannie Mae / Freddie Mac as those entitys wont allow an investor to be excluded from their flipping guidelines. So if they wanted to use those sources for their financing, then you must have been on title for 91 days or more before you enter into the purchase contract with them. Which means you would have had to buy the property and hold it for 91 days or more, or they have private money or cash to buy it.
I can e-mail you the rules if you would like to cruise through them. The other rule is that FHA and the rest wont do a loan on a property where the seller on the purchase contract is not on title. It doesnt matter how long you have had your purchase contract in place, if your not on title, its a no go through those guys.
But there are ways!!!
Where are you located?
Yes you can, it’s done everyday.
One poster indicated the FHA 90 day rule, but that rule was cancelled some time ago and I don’t believe it has been reinstated. You can check it out on the FHA site.
Plus if you do it right you won’t have to worry about the seasoning issue anyway because title is being passed from the original owner to the end buyer, and it is rare that they have owned it only a short time.
The most common technique is to close with the end buyer on the same contract. I know I’ve posted on this subject in detail somewhere, check the archives.