Short Sale Then Sign A Purchase Contract Then Flip?
Hey I'm still learning this whole REI thing and was wondering if you have a short sale go through but don't have the money yourself to purchase should you sign a purchase contract then flip it to another investor for a few thousand.?
It is a ton of work to do a short sale but to create some positive cash for myself I was thinking it would work great and you could ask more than the basic preforclosure, maybe like 5-10k for your services to another investor.
Does anybody have a better idea?
I have heard that the lender frowns on someone other than the original buyer purchasing the property. I have very limited experience but this is what I have heard. In none of my short sell packages has it ever specifically said that you could not assign and all my Purchase and Sell contracts allow assignment by the fact that they do not prohibit assignement. I think there is so much that is unknown, or changing in how the Loss Mit departments operate that nobody wants to mess it up in the 11th hour.
Some SS people never take title to the property. They immediately start marketing it to a retail buyer by putting it on MLS at a reduced retail price. They list it on MLS after the BPO. You then need a double close or a stop gap hard money loan in the middle.
Many people try to get relatives with decent credit to step up and "save" the house. Again you would have the double close.
Brenda
For the fact that you could wholesale it to another investor. You would get less money than a retail buyer. But an investor knows they must have cash and after you work with several you will have a high confidence level that they will deliver.
Quote:Some SS people never take title to the property.
Sorry, this was incorrect. In a double close you do take title.