Hello to All & Thanks for all replies to my question below…
Is it possible to wholesale (assign to end-buyer) a shortsale property?
Also… If so, what are the exact documents that I need to do this? Does anyone have any they can spare? Thank you
the problem is that you’re going to have to close the deal out with the bank holding the note. Do a double close to complete the deal using two contracts, one between you and the seller, the other between you and the end buyer.
The bank that you are obtaining a short sale approval from will not allow you to assign the contract .They will only close with the original buyer on the negotiated contract. As mentioned by the previous poster, you can do a double close. Close on your side then again with your end buyer. As long as your end buyer is paying with cash or using a HML, you will not have any seasoning issues. Hope this helps.
Ruben is right you can only double close a Short Sale with Ca$h or Hard Money. There’s the big “TITLE ISSUE” with you not owning the house and seasoning. Build a buyers list of people and how they buy. Then you can double close all day.
Actually some banks WILL Allow you to assign a short sale contract, however you will have to have a qualified buyer that is ready to take over and buy riight away. Getting the bank to accept this situation takes some effort and negoitiation, but I have seen it done recently.
You can also form an LLC and then sell that LLC to your end buyer.
But If I do a double close I will have to close with the bank first using my own cash/HML then I can close with my end buyer, correct?
Or can I just put the property under contract to lock it down then go find my end buyer & get another seperate contract with him then take both contracts to closing & I get the difference?
:shocked Yes and No everything depends on your Title Co. everything boils down to that relationship. Either that or borrow money from 1 of those 24hr companies. Personally I wouldn’t but some do. I’d just ask my title co how they want to do it.
It’s worth doing because it doesn’t really cost you anything, plus you get the deal done.
So it doesn’t cost anything to do a double close? Do I need a certain type of contracts for this?
Technically, It doesn’t cost you anything, if the deal closes. If you dont close then you have lost the admin fee.
No you don’t need any special contracts, an assignment agreement will work.
hassanr pm me this info our guys charge up to 10% which is why I double close.
Isn’t the fee for a double close just the closing costs? Or are you talking about the 24 hour lending companies? Which would you prefer?
Hey guys, a picture of how I do it would explain much better, but I’ll give it a shot.
the way I wholesale a short sale is this…
purchase contract with A-B…short sale approved
sell contract with B-C…disclosed everything
escrow is opened, I pay for title insurance to protect my buyer.
the title company creates a FSBO contract between A-C
I show up on the sellers hud1 as a ‘personal lien’
C funds escrow
escrow pays bank and myself(actually my LLC)
it’s a single close (title company doesn’t like it b/c they only get paid once, ohwell)
then if the end buyer is a rehabber, he wont have seasoning issues when he re-sells.
I hope that did an decent job of explaining. I haven’t had any issues with the sellers bank giving me grief and
my buyers that are brought to me by agents are already qualified and itching to buy.
but thats how I do it all the time.
The only problem I see is finding a title company in your state that will do a double closing. I havent found one yet here in Socal
It took me a while to find one here in Raleigh,NC but I have. Just keep looking…of course we use attorneys and not title companies so it might be different.
All you need to do is to create an option contract with the seller. Have the difference between what he wants and what the buyer agrees to pay paid to you as the option fee via an invoice paid at closing.