Im trying to figure out if its better and safer to do Short sale as an RE agent (that im going to be soon) and represent the seller and after discounting loan to find ready buyer and collect commision (seems like less risk when it comes to finances)…or do it it as an investor but when it comes to closing seems like it is impossible to close unless you finance the deal first and than close again with new buyer since you cant do assigment or simultanious closing . And it seems like as investor doing SS you need to be on Purchase and sale agreement.
Also how do you find and qualify End buyer ahead since you dont know what the discounted price will be ?
Anything is greatly appreciated.
I’m assuming you’re just starting so I would recommend becoming an agent first and closing some short sale deals so you can learn everything about how they work.
Short sales in general are a pain in the a**. Trying to double-close without prior experience will give you grey hairs. :eyecrazy
Plus as an agent, you still have flexibility to make margins. I know an agent who’s investor buddy submitted an offer for $300k on a house that they knew was worth about $400k. The bank accepted $300k, they closed, and a few weeks later ‘they’ resold it.
Some will argue that the agent has to get the highest offer, but on a short sale, if the first offer he submits is the lowest offer and the bank accepts it, then he doesn’t have to go any further. All other offers become backup offers. With REOs it’s different, all offers have to be submitted.