OfflineOk, here's the deal, a RE Developer that I know told me about a 2 Family I could pick up for 60K. Had my really do some comps, a house in that are sold for 265K at the beginning of the year(new construction, but shows there's value in the neigborhood). My agent told me it's a short sale and there appears to be water damage. Could be ugly, but the outside of the property is ok. He also said the the seller's agent said the short sale has already been approved, so we wouldn't have to wait months for an answer.
If the numbers work out, can I lock this up and assign the contract and how do I know how much work it needs? Do the banks allow assignments on short sales or should I just pass it off to a buyer for a finders fee?
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If the numbers work out, can I lock this up and assign the contract and how do I know how much work it needs? Do the banks allow assignments on short sales or should I just pass it off to a buyer for a finders fee?
just get your finders fee and move on
Hi!unfortunately many banks don't allow assignments of their property. However don't let that discourage you, if you find a buyer who rehabs houses, my suggestion would be doing a double closing on the property.
I realize there is more involved with the double closing, so the potential to gain is more, but can I do a double closing if I don't have the money for the property? Also, if I pass this one off, how do I obtain the finder's fee? If its possible to go all the way and make more profit on this deal, I'd like to, I just don't want to start the process and hit a brick wall that I can't get around.
Also, I just formed a relationship with a very aggressive Real Estate Agent, who's along for the ride. Should I let him know that I'm going to be doing a lot of assignments?
Also, I just formed a relationship with a very aggressive Real Estate Agent, who's along for the ride. Should I let him know that I'm going to be doing a lot of assignments?
nothing we hate worse than an investor/client who withholds what exactly they want to do
Tell him/her what your plans are and let the agent give their opinion on things. If you can't find a middle ground, move on. If you both think things are possible, then its on
Be upfront
Also, I just formed a relationship with a very aggressive Real Estate Agent, who's along for the ride. Should I let him know that I'm going to be doing a lot of assignments?
If you do a double closing, my understanding is that you can use transactional funding for the first portion of the deal as long as you have an end buyer in place. That way there would be no money down for you. They also provide proof of funds letters when you submit your offer. www.cashformyclosing.com or www.coastal-funding.com are the 2 I've read the most about investors using.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Elixbrown and Sheila, that's great advice. I'll keep my real estate agent up to speed on what's going on that way I have someone on my side that knows my intentions. Definitely don't want to keep something from someone I'm looking to do a lot of business with.