Converting A Short-sale To $CASH$ Profits
If you do have a short-sale offer accepted by a bank and you acquire a property with quite allot of equity in it, how would you turn around and sell it right away without brining up title seasoning issues with lenders?
I guess what I am wanting to know, is once you are successful in acquiring a property via a short-sale, what is the best method to use in order to realize your equity in the from of cash-profits? Any feedback would be appreciated!
Be willing to leave the "homeowner" in the house after you purchase it. Obviously, they need somewhere to live and it helps their participation level during the short sale. Give them a 2 year Lease Option, hopefully you will be paid on the back end when they Option out. These guys will buy back for much more than they previously owed minus any negotiated short. Win for the "homeowner" - Win for you - No seasoning issue (if they pay).
Be aware, these guys have an obvious history of not paying the rent/mortgage. Know your eviction laws and let them know that you know.
Hello,
As I read the responses from bitting and shortsalepro, I had a couple of questions about some of the terms.
Would equity enhancement be some sort of clean up/staging/renovations to bring the property value up? Or is it something else?
I am unfamiliar with title seasoning issues. What does that entail?
Thanks for your patience with such silly questions!
im a rookie (and not a lawyer), but this is what i know as of now:
when your buyer (of the property) comes in to the deal with a conventional bank loan, depending on the bank, they will require that the previous owner has been making payments for a (bank determined) set amount of time. also, they dont want to see title being changed too quickly especially with large increases in sale price (i.e wholesaling). maybe you can goto a rei group and find a cash buyer and leave some profit in for the rehabber, then double close it to him/her.
or depending on your credit, maybe you can put a loan on it..do a little rehab (to add more value) and keep it as a rental. then some time later you can refinance and take some money out.