OfflineToday I received a lead on a property which I thought orginally had the potential to be a great deal. My agent calls me and informs me of a home which is currently a short sale. He said there was $44k left on the mortgage but the bank approved and would accept $35k. Market value of the home is just under $100k and considering the home is in fairly decent condition, I felt that this could be a great wholesale opportunity. I call my partner who has buyers in that area and he tells me that I would not be able to wholesale or assign a short sale. He stated that there are government regulations which require the buyer to have the property for 90 days before he's able to sell the property.
Im am fairly new to wholesaling having only completed 2 deals none of which were short sales. Is there any validy to this 90 day rule? Im directing this question to any investors who have experience in wholesaling and purchasing short sales...
I don't know of any 90 day government regulations on a short sale so that should not be a concern. The issue is you can not assign the property because you will be dealing with a bank and they do not all assignments, but you can to a double close on it using transactional funding. From the sounds of the deal a double close would work well on it.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Wow.... I forgot all about the double close option!!!! Im glad you reminded me of it. Granted I have not done a double close, I do have access to the insider's cash transactional funding..
Thnks alot...
Be very careful when attempting to wholesale short sales. Really becoming more and more difficult. Read your contract closely. Deed restrictions are very common. The LLC thing is probably the best strategy. Hope you have 6 months to wait around if you are dealing with listed short sales.
Good Lock!
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I did some reasearch and its not even an option here to wholesale short sales.. Any deal involving a bank whether it be shortsale or REO is a no go.
Your bio is not complete so I don't know what state you are in. However, you can wholesale REOs anywhere. Short Sales are a giant pain but can also be wholesaled. Once again, I like selling the LLC these days.
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site