I have people i can whoesale the property to, but should i be bringing my buyers to the house before i have the short sale accepted? I noticed some had a contract signed with an end buyer before the short sale was accepted is this a wise thing to do or is this more of a credibility risk?
You need to put subject to successful short sale. In order to have a successful back to back closing on a property you need full disclosure. Which means the contract you use on the purchase with your seller “A” sells to “B” needs to disclose your going to be selling the property for a profit. The sales contract with you and your end buyer “B” sells to “C” also needs to disclose that your transaction is subject to a approved short sale. Hope that helps. Don’t try to hide what your doing to your buyer/seller/title company/lender or it will only cost you time and maybe a little money because it will blow up at the closing everytime.
i did use that clause and full disclosure in my contract your are refering to, which i got from reading your short sale case studies. I really took alot from that post so as far as disclosures goes i think my seller knows exactly what im up to and she is fine with it.
Now i have the contract signed from my seller, i just got it back yesterday, but what im worried about is marketing it to my end buyers getting them all juiced up for a good deal and then the bank not accepting my short sale.
Is this a neccessary risk to take?
Would you start marketing at the price you think should be accepted by the bank?
I would start the marketing now. It makes it so much easier if you have a exit buyer when you get approval. If you have to come back to your buyer and raise the price a bit to make it work it will be easier with the disclosure of your short sale. If you can line up 2nd and 3rd options as far as exit buyers go. A good way to build a buyers list and sell a home fast is using the round robin auction method. Get the book 5 day sale and try it out. Enjoy!!
Well the bank will consider my offer because the property i locked under contract will not sell at the comparable prices due to repairs needed to bring to full market value or for other reasons due to the home owner not being able to afford the mortgage anymore
Let’s say you drive down a block and all the homes are priced at 200k and then you see this little ol fixer upper at the end that needs let’s say 20k in repairs plus holding and closing cost, i know your’re not going to pay 200k for it, no! your going to offer 60-65% -repairs and fees.
This makes sense to the bank because they do not want another property on their books and they know no one will pay full market value for a property that is worth a fraction of what all the other properties in the area are selling for
I hope that sheds a little light, there is alot of articles on the site regarding the subject, i recommend you read a couple, they will give alot more insight than i can in a few short sentences