WHOLESALE LOOKING MORE LIKE A SHORT SALE

Foreclosures, Short Sales, Tax Foreclosures
1

:help :help :help :help :help

Hi everyone. I started looking at this property to wholesale. I have been dealing directly with the owner and the more I talk to them its looking more like a short sale. The owner is saying that the bank does not want to take the property back because they are totally overwhelmed with properties and is giving the owner permission to sale the house. The owner is asking 65K. The house is valued from 130k-145k. I wanted to wholesale for 20K. I preferred not to, but a back to back closing seems best. I have buyers lined up, mostly cash.

  1. Is it best to use a realtors contract (no realtor, just contract), purchase agreement, or an “as-is” contract?

  2. Who does the title search? And how do I get the buyer to use my title company which performs back 2 back closings?

  3. If I write the contract up as a cash sale, what if the buyers I line up decide they would rather not do an all cash sale how does that effect the agreement I have with the owner?

2

As-is will be fine, but a contract’s a contract, even if it’s on toilet paper.

Better be you if you don’t want to lose your shirt.

Put it on the toilet paper with the rest of the contract.

Use the toilet paper for its originally intended purpose and find another buyer. The owner’s unaffected so long as you can still close the deal.

3

Thanks JDS. Is the title search seperate from the insurance, if so do I need to purchase the insurance as well?

4

Yes, you can’t get insurance without a title search.

Your end buyer does.