Short Sale Flips In California?
I bought this study course to flip short sales from Dc Fawcett. He teaches you how to do these flips nationally. The way he teaches how to do them in California is to put the property in a land trust (you the buyer, as the trustee)along with recording a warranty deed. Then at closing of A-B transaction you transfer the beneficial interest to yourself. You close A-B transaction with your funds and close B-C transaction the same day ( doble closing, back to back closings). For all of you short sale flipers, do I really have to put the property in a trust? Do I get myself on title by recording a Trust Deed or a Warranty Deed? If I record a deed and the short sale falls through what happens then? Am I liable for anything? Should I disclose to my buyers lender that Im flipping the property? I appreciate any feedback from experienced short sale flippers. I am new to this game and need to structure a deal that I have ASAP. Ive been reading the post and know theres a few of you out there. Any info related specifically to California would be immesely appreciate it. PS: Im in LA County.
Quote:
On 2009-09-18 12:58, ICGPROPERTIES wrote:
Illegal in IL
Source please...
The title companies have clamped down on these type of transaction.
You mean no title companies are allowing them any more?
How do you explain w/ the flipee (in a-b-c, the c party), and their bank, the fact you bought for 30K and are selling it for 100K a month later?
This is great, great information. This should be enough to get me going. I just want to let you know Im really greatful for taking the time and explaining this process to me. I will like to know a few more things if possible:
Do you negotiate the spread by debating the value of the property with the short sale lender based on the fact that this is a distressed property and then just market the property for sale based on the regular market (standard sales)? Or is the spread created by negotiating with the SS lender based on the discount they are willing to take considering they want to avoid paying forclosure closts, carriying costs and reselling costs? Do you type a title commitment or disclosure for the B-C lender? By recording the memorandum 90 days prior to closing the deal, do you still have to deal with the 90 day seasoning required by FHA? Did you figure out how to get around the verbiage in the CW/BofA SS approvals or are you just staying away from those deals?
I have a friend who made almost one million last year flipping these. He would NOT tell me the secret of how he made the difference between the negotiated lower loan payoff and te sale price to a new buyer. He hinted about creating notes to be paid off but that was it. Ive spoken to all the title companies here in Oregon and NOT ONE will be involved in a short flip. Im a mortgage broker and have no wholesale sources who will finance the purchase of a short flip. I have access to HUNDREDSD of properties well before anyone else knows about them being in trouble, as I do BPOs for servicers. I have the props but cant figure this thing out. Anyone want to share for profit split?
[addsig]
Illegal in IL