I’m very new to REI but I believe that SS is the way to go. Here’s the deal. A friend (not close) bought a house next to the house his girlfriend was having renovated. The house for sale was purchased at the height of the market. She has since finished the renovation and they got married. He is now upside down on the house he bought, and she has been making the mortgage payments on both houses. She is now through her savings and can no longer continue to pay his mortgage. Result: a very motivated seller. Complication: he is a RE agent, and has been trying to sell the house retail. House has been on market for 3 months, and I think he’s close to defaulting, but I think he still thinks he can sell the house. I think I can work the numbers for him to show him how a SS is the way to go. The house is in a very desirable neighborhood, and needs a lot of work. A comp two doors down recently sold for 200K less than what he bought his house at. The comp was in pristine condition.
Here are my questions: should I attempt to do this SS myself, or should I just aim for a contract assignment fee?
If I do it myself, how should I finance it without too much risk to my personal credit (which is excellent; FICO 748) and since I have no income to speak of at the moment? Should I use a HML, and will the mortgage bank accept my financing with a HML?
I think I saw a thread here where a SS deal was made, and the original buyer didn’t close until he had a new buyer lined up (had 90 days to close). Is that legal in VA? Is that a good way to avoid risk?
Since the seller is a RE agent, does that complicate things legally? I don’t know if the house is MLS listed, but I don’t think so. I believe it is FSBO.
What other questions should I be asking? :help