I’m yet another new investor :rolleyes still researching all the investment avenues, getting a realtor license and have been told by several invesors, attorneys and title companies in VA that the lenders are starting to reject assignments and double closings. Anyone in VA running into this? Assignments and Doubles were going to be my main focus until I get a license…
Thanks in advance,
Why would you change that strategy (assignments and double closings) after you become a Realtor? What would you change it to?
My original focus was going to be assignments and doubles, but I’ve run into so many people telling me the lenders are balking at funding deals where there’s anyone in the middle and in the case of short sales, they’re cutting the realtor commissions. Didn’t know they could do that, but that’s what I’ve been told. Just figured getting a license was starting to look like the only way to get into real estate without having the extra money to CLOSE on properties before re-selling. I’m all ears if you have any suggestions or I’m just missing something because I’m so GREEN here.
Conventional lenders don’t want to deal with assignments. Hard money lenders don’t have a problem.
As a matter of fact, if you are going to assign a contract, you don’t even have to worry about borrowing any money, since the person you are assigning to will be doing that.
There are several areas throughout the US experiencing this same issue. You could always use a 1 day funding loan. No credit, income, assests, or appraisal needed. Funds are wired to closing so that you can actually buy the property. End buyer’s financing must be lined up so they can close immediately after you do.
I was aiming for small takes…say 10-20K. Getting the option or or purchase contract then flipping fast to a buyers list or via 7 day sale to conventional buyers. A conventional buyer won’t have cash to pay an assignment fee and I’m told the lenders are balking when it turns up in the paperwork or on the HUD-1.
I like the one day loan idea provided I can get properties low enough below market to make the extra cost worth it. Definately something to keep in mind as I’d also like to learn short sales.
Thanks for the inputs!