If I have successfully negotiated with the lenders on a deal, do i have to personally buy it? or can I have a buyer lined up to buy it even though i was the one who personally negotiated the deal?..(im from NY)
you could pass the deal to someone else…(Wholesale it)
thank you for the suggestion of a wholesale deal, but my question is… let me use an example, if i negotiated with two lenders and got the short sale down to $205k and i have someone to buy it for $265k, can i sell it to him even though i was the one who negotiated the deal? without having to come out of my pocket at all?
Yep…
This is the hot topic of Short sales right now and will probably get hotter as we get through the year. Basicly, your asking about having an end buyer that purchases the property and not yourself. There is something called the double (simultaneous) close. It’s when you close on the property as the buyer and then close again in a short period of time as the seller. The cool thing is, you can use the end buyers funds to fund the first transaction, since you will be closing with them (presumably) shortly afterward.Some title companies will do these transactions some won’t. There is also the method that Matt talks about. You use funds from a third party to close and then when you resell to the end buyer you split the profit. Good luck
obviously no one providing advice here has ever closed a short sale. Every approval I’ve negotiated has stipulated in the bank’s acceptance that the “contract SHALL NOT be assigned”.
The buyer/negotiator must CLOSE the deal.
Jeezus H. is everyone on here just trying to sell their wares or does anyone here actually BUY real estate??? !!!
:bs
:bobble
From my experience some banks will allow you to assign the contract but it needs to be put into the offer so they know. You will still be on the hook to close if you do not get it assigned. You also will need to put up earnest money to hold the contract with the bank.
Double closing a short sale can happen, but tough and I think with all the new regulations it may be tough to find a title company willing to do a double close on any deal since I am sure a bad loan will trace back to them as well as to the broker these days.
Just remember when signing a contract, all you need to do is add assign after your name and it is assignable…
basically, ask my attorney and my title company to see if it can be done, a double closing.
All the BS is avoided if you fully fund the front end purchase of the deal. You can then close simultaneously with the end buyer. Worse case scenario is that you are out some closing costs but the deal is closed and it is above board.
We use options and memorandums of options to overcome seasoning issues with the end buyer if they need to get conventional financing. We did use land trusts but the option method works better for us.
for the most part i agree with g whiz and Jason (in part) because nearly all banks require that the contract not be assigned to someone else although there are cases as of late where I have heard banks accept contracts from investors who are going to be assigning them as many banks are in such dire straits they are willing to off-load the assets under any circumstance…
i personally haven’t had any that have agreed but i am presently working on a few different offer techniques that i hope result in getting banks to accept my Professional Investor status and agree to allow my contract to be conveyed and/or assigned to someone else.
Lastly, I know many investors who have found smaller title companies and aggressive closing attorneys who are doing double closings but the deals are not full disclosure which in my opinion is where the problem is; my personal suggestion is that if you are a licensed Realtor list your short sale deals and earn your 5% commission, if not set up a dba and charge a loss mitigation fee and also line up your end buyers and charge them a cash fee to purchase your undervalued deals and save the money until you get the cash to fund the deals yourself…
Not quite the get-rich quick that is ever popular but it will definitely keep you out of jail and prevent you from being on the evening news as another “sub-prime” mortgage scam investor statistic…