I Don't Want The Buyer To Know How Much My Fees Are Until Closing....Put Your Thinking Caps On
For example: I located a house owned by the bank listed at 93,000. Comps in the area run about 140,000.
(FMV * 70% - repairs) no repairs needed. 93K , yep that's about right.
I've negotiated with the bank and they are willing to sell for 63,000.
I have a buyer that wants to pay 93K cash. If I tell him that the house is really 63K and my fee is 30,000 they will probably decline. How can I structure the deal where the buyer does not know
my fee until he closes on the house without doing a short sale or wholesale
deal?
1. Have him pay the bank 93K and then
the bank will keep the 63K and give me
the 30K? Will a bank be willing to do that???
2. What if he uses financing. Could he
include the 30K fee into the loan and
I get a check at closing? (without doing
a short sale)
If my fee was only $5,000 I would have no problem asking for that. I just think that a buyer will shy away from a high finder's fee.
Good news is that he will get a great deal on a house.
Put your thinking caps on a be creative.
I'm sure others will benefit from your responses as well.
Thanks
Could you find a hard money lender and use his money for one day?
Borrow money from everyone you can find, collect pop cans? Heck man to I'd do anything to scramble it together.
Partner with a cash rich investor, split the profit 50/50, you still end up with 15K. Maybe 70/30?
Maybe get (I know it sounds bad, but) conventional financing and pay it off the next week? If you did, you may be able to get a fee from the buyer (equivalent to your downpayment) and flip it to him once you own the property?
I am very new and don't know if either of those would work, let me know what you think.
Also, how do you find houses that banks own, and do you come by those very often?
from the info given , i think the the less friction in this would be to simply negotiate the short and buy at 63,000 , non seasoned, then wholesale to your new buyer at 93,000..i have never done it but flipping from a short with you sandwiched is not that simple but can be done..the short sale pro said something about it a while back..check the archives..im not sure a double closing as an REO will work as you are doing a short as well..i would most definately get the house via the short first off, then deal with with your PREdetermined exit..sounds like an excellent deal even at 93..good luck..pm me and i can get you details of how we did a flip out of a short..i hope this helps out a little..hopefully the short sale pro will post to this..that guy is REAL good..
Regards-pat
be careful of seasoning issues. Use a land trust and name it appropriately.
BTW, go for the whole ball of wax, don't shy down!
MAKE IT HAPPEN!!!!!!!!!![ Edited by davidbarnes on Date 11/13/2003 ]