OfflineHello Fam,
I am hoping you all can give me your input, knowledge, or have handled some deals with closing a short sale and flipping it over to an end.
I know that this can be looked down upon and maybe border line illegal. I know some people or companies are getting in trouble for getting approved price on a short sale, then turning it over to an investor for a profit.
Can we still do this with short sales??
I am live in PHX and the market is flooded with short sales and that is what I specialize in. I negotiate sales on behalf of agents and homeowners.
So my main question is can we get an approved price on a short sale, and then assign it over for a profit with out getting in trouble??
Has anyone had experience with turning over a short sale to an investor without having troubles showing proof of funds in the negotiation process??
What is it exactly that the government is looking to crack down on??
I feel i know what they are looking for but i just want to assure myself so i can start focusing on my next plan??
PS i would love to talk with anyone who is not comfortable with short sales or have question how a 3rd party works with negotiations.
thanks
SHORT SALE FLIPPING????
Posted on: Sun, 12/12/2010 - 05:11
SHORT SALE FLIPPING????
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- by sredman
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The guys here in SD are negotiating the short sales with CASH & closing on the deal with their funds & then re-selling the property the same day, but it's a whole separate transaction. Also every thing has to be disclosed to the bank that you intend to resale for a profit & then your good to go.
They are averaging about 5 short sale deals a month & the spread is just amazing. They are now keeping the properties for themselves & they are making 70-100k per rehab flip but it took them a long time to build relationships & learn what banks are easier to work with, who to contact, how to submit the package correctly & stay on top of the the whole process.
Jason S.
San Diego, CA.
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The investors in our area who negotiate short sales disclose to the bank and the homeowner that they will be quickly selling the property for a profit and put it in writing for the homeowner to sign and submit it with the initial paperwork to the bank (CYA.) They double close on the property. Hope this helps. Here at least, the banks require that the property is listed on MLS quickly.
If you will be negotiating the short sale the bank assigns it a number I believe (I haven't done this myself) and and when submitting any and all paperwork to the bank make sure this number is on the paperwork so it doesn't get lost in the shuffle. This is important because they get so much paperwork. Also confirm the receipt of the paperwork.
Lea