How long does a short sale normally take? I live in texas, does it depend on lender?
Also when the lender requests a appraisal to get the value of the property…do i as a wholesaler need to pay that fee, or is there a way around that??
I love the fact that it is instant equity…but i have a feeling it would be a lot of haggling, and time to wait. I have a time-frame in my contract…what do i do if the short-sale takes longer than 45 days??
I do look forward to hearing from you pros on this subject…thanks a million!!
Abel :help
The only people who have dead lines are you me and everybody else, oh and that list does not include any one at the bank dealing with a short sale.
Now go back and get your extension addendum ready, Darin
ok i get an addendum to extend the offer. where do i obtain that?
Also the inspection fee…how does that work?
Thanks for your patience on this.
Abel :banghead
Any realtor can supply a blank for you and help fill it out. Get extras as you will be using them yourself.
The inspection fee you pay. I usually like to pay it at closing from proceeds of the sale from my buyer. Although if you order it you pay for it.
ok darin, i understand that …another question…what do i disclose on the contract for the buyer to pay inspection?
This is on the assignment contract right?
When i go in a property i assess its value by an “estimate” , thats doing my due diligence, among these other things:
-max selling price
-acquisition costs
-repair costs
-four month avg.
-Min profit (15%)
-Misc Expenses
-cost to sell
-Max purchase price
-And additional costs
Now when all this is figured where does the inspection come in to play?
Abel
Hello Abel,
Inspections here cost about 300-400 hundred bucks. You may pay to have them done in the early years of your career. As you learn what it takes to rehab you won’t need some one to tell you what needs to be repaired or what the costs are. Till then hire people who do know.
Not sure I would muddy the water with who pays, I would just add 400 bucks to sales price to cover it. Your buyer may want to have an inspection done prior to his purchase and he would pay for his own. You could at that point offer to show what you know from your inspection. This may help sell the deal. It may nix the deal too, but that is what you want, meaning to qualify a buyer in as short a time as possible. The idea when wholesaleing is to be selling so low that your new buyer can’t wait to take possesion.
Darin
Able,
If you do the short sale correct you can get the bank to pay for the Inspection and the Appraisal. And yes there are easy lenders and tough lenders, I remember my first short sale was with a smaller bank and it took almost 60 days. Now with the larger banks we can get them in and out in 7-21 days in most cases there are some that have been done in as little as 5 days (Very rare). The goal is to hammer the second If there is one and then work the first. I always try to buy out the second for 2-3k and move on from there. Hope this helps.