Short Sale Flipping with Private Funds
Many investors have finally caught on to the vogue way of buying and selling short sold properties. We all know that the best way to find these properties is through Realtors and the best way to find buyers is through who? Realtors! So we have the solution to capitalize on this huge industry but the the biggest issue is not properties or buyers. The biggest issue that most seasoned investor’s have is Funding, proof of Funds Letter and Financing for the B-C transaction to close the deal.
There are two parts to this question: 1. Transaction funding, 2. Short Sale. Let me answer one at a time.
Transaction Funding is used nowadays to facilitate “double closings”. Whenever you (the investor - “B”) buys a property from a seller (”A”), and sells it on the same day (”immediately”) to an end buyer (”C”), most title companies will require you to fund your purchase transaction (”A → B”) with funds other than the funds that are coming from your sale transaction (”B → C”).
Because these funds are merely used to facilitate a transaction, this is commonly called “Transaction Funding”.
As such, this applies to all kinds of transactions as long as you need a “double closing”. In case your title company tells you that double closings are illegal, ask them about “consecutive closings”. But don’t worry too much about title companies. I have a good title company if you need one.
Transactional funding can be used not only for short sales but also for REO’s (bank owned properties) and any other transaction that you structure with a double closing.
Realtors I know you don’t like shorts sales but I think this program might help the market.