Hello,
I trying to line up everything to do a A>B, B>C transactions.
The problem I’m running into is “title seasoning” with the “C” buyers lender.
So my thinking is to just sell to cash buyers. However I know cash buyers want deep discounts which will eat into my possible margins and may not be enough to even make the doing the short sale worth it!
I have been calling quite a few banks and the only one that didn’t care was Flagstar. However the buyer needed 5% down for a conventional loan.
My question would there be enough in the deal to sell to a investor AND profit enough from the deal to make it worth my time???
It depends on the numbers.
Do you have any investor buyers on your buyers list? If so, call them up and ask them what type of deals they are looking for.
Have you tried contacting any of the small local banks in your area? One of the guys in my mastermind group is doing really well wholesaling his REOs to owner occupants who are getting financing from one of the local banks in his area. They don’t have any title seasoning issues, so he is able to get his buyers funded, no problem.
If you are approaching conventional lenders, I don’t think you are going to get too far…
Good luck,
Steph :cool
Right on Steph! Small local and regional banks are the way to go. They still have loan products that will fit your borrowers needs. There are a couple bigger banks out there that still have these types of product but it is easier to deal with a smaller bank.
Yes I’ve called nothing but small banks. Either they don’t do it, have 6-12 months seasoning or require 5-20% down.
These are all short sale properties so I would think that because REO’s are “bank owned”, there wouldn’t be any seasoning issues.
Well yeah the banks are going to require 5 to 20% down. No money down loans from retail buyers is how we got into this mess to begin with. I want to see our buyers put a minimum of 5% down or I do not take the serious.
short sale/reo seasoning issue is going to be the same if you are buying them and then flipping them. Because you are taking title even if its for just an hour.