I have a negotiated a short sale with two lenders and it was accepted totaling to $150K, but the buyer had an ARV appraisal done on the property and it comes back at $340K, the buyer will be getting a hard money loan based on the appraisal the house needs about $30K in repairs. I guess my question is what happens to the excess money? With this being a short sale can the buyer walk away from closing with additional funds? The contract submitted to both banks does not have record of the repair estimates. Please help. Will the banks have a problem with the buyer having excess money?
Also as the investor how can I get my fee from the excess money if possible? Since I negotiated the short sale and I located the loan for the buyer?
toplevel: are you flipping this, as in you are buying it for $150K and flipping it to a buyer? If so, congrats, you should be making a huge profit.
Wooooo Hooo way to go make that money C------A
That is my question is it possible to flip and sell to buyer while it being a short sale? The bank has a sales agreement with the seller and buyers name? I am not sure how to get paid legally. I am in the state of GA and they have a lot of stringent laws due to past fraudulent activities.
Do a double close. You are buying it for $150K. Your buyer is buying it from you on the same day. Your buyer provides the funds for the transaction to the bank. After all fees are taken out, you get the left-over & presto! Profit!
The key to a double close is to find a Title Company that does them.
I’ve tried to locate an attorney that would do a double close but I am not having much luck. That is why I was looking for other options, if any!! :o
Try asking investors in a local REI Club for a reference to a Title Company for a double close.
In no way Im I trying to be rude, but man you need some serious education on short sales. The reason I say that is because you have some serious $$$ on the line.
First You negotiated the shortsale right?
So the banks are asking 150k right?
And you found the buyer that wants to rehab the place right or wrong?
If the last question is right?, then set your price above the banks asking price and that is your PROFIT$$$.
get both contracts and take the to the title company and perform a double close.
one of the contracts will be you buying the property for 150k and the second contract will be you selling the property for xxx amount which inludes your profit.
Have you set a selling price including your profit yet? because it doesnt seem like you have.
Does your end buyer know your banks asking price?
This is bull crap people. This guy is lying. And since I live in GA, I want him to prove what he says. This is a farce. No lender is going to discount that much. Period end of story. Prove it!! What he did was INFLATE the property value.
Give us the address buddy boy. We can do our own comps.
We’ve had this discussion on several ocassions before before. See my note to you on Tuesday, Novemer 07, 2006 at 08:11 AM…I can post this note here in the open forum if you’d wish so others can see your past transgressions to find out what they’re dealing with here…and, correct me if I’m wrong here, aren’t you the “You’ve got to lie” guy?
Does this rule ring any sort of bells with you?
"No Profanity or Name Calling - if you disagree, that’s fine, but do so in a professional manner. "
Calling another post a liar is not “a professional manner”. You need to stop being so intentionally abusive to the other posters.
And, just because a mehtod hasn’t worked for you in your little corner of podunk Georgia, doesn’t mean it doesn’t work at all.
Hey Keith! Name calling includes insulting “podunk Georgia.” I can call it that since I live here, but it beats living in Alabama!
Nah…you’re wrong. I’ve spent way to much of my life in Georgia…my descriptive adjective is entirely correct and I did not call another member a name. If the State of Georgia is a registered memebr here, I will amend my post.
What’s that old line from gradeschool? Takes one to know one?
i dont know exactly how things are done in that area of the woods but ive bought homes at alot less than 50%. Maybe Georgia is different but alot of other states are not. Ive bid obscenely low on some bank owned and after a month they came back and took the low offer" paid 2500 for a 90K house" yes it needed work but only about 15K. But either way yes you can do a double close but make sure you add in what you want for profit beforeyou approach your buyer. Thats the only way you make the cash. if you are buying it at 150 needs 30, sell to the guy for 210 with the 30 added hes in around 240 which gives him substantial equity and hes going to do all the work. Should be a win win for both of you