Short Sales & Assignment Of Contract?
I am a newbie here, and I am looking to get into short sales and options. I was just wondering if when you all are talking about Assignment of Contract in a short sale, do you mean that at the closing table you assign the contract to the end buyer...effectively using the end buyer's funds to make the purchase for you, while you keep the difference? Does this make sense? :-?
What I am wondering about this is if it is possible to in essence perform a short without using any funds from my own pocket (or any financing)?? Thanks for your input!
Did I completely not make sense? :-?
For the inexperienced, assigning a mortgage approved, preforeclosure short sale contract is difficult, if not impossible, without having lain the proper foundation.
In a nutshell, the approving mortgagee must maximize it's net recovery and wants every available nickel from the deal.... and routinely do not permit the assignment from the named contract purchaser to a third party.... especially for a profit.
If flipping is your intent.... be advised that to be successful, this technique must be fully articulated in your business plan... and your network in place.
Network? Yes, a net work of ready, willing, and able Purchasers, a cooperating real estate broker... an experienced mortgage broker, a competent title searching/insurance provider, an attorney familar with LLC's and double closings, etc.
Since mortgagees prohibit obvious (the key word is OBVIOUS) assignments, newbies to short sale techniques will have an easier time by completing the purchase themselves.... The most profitable short sale acquisitions, in my opinion, result from the purchase, renovation/rehab of a physically distressed property, and resale to a retail buyer.
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Short Sale Practitioners can't predict, but can and should prepare.[ Edited by TheShortSalePro on Date 03/25/2004 ]
Quote:
On 2004-03-25 08:31, TheShortSalePro wrote:
For the inexperienced, assigning a mortgage approved, preforeclosure short sale contract is difficult, if not impossible, without having lain the proper foundation.
In a nutshell, the approving mortgagee must maximize it's net recovery and wants every available nickel from the deal.... and routinely do not permit the assignment from the named contract purchaser to a third party.... especially for a profit.
If flipping is your intent.... be advised that to be successful, this technique must be fully articulated in your business plan... and your network in place.
Network? Yes, a net work of ready, willing, and able Purchasers, a cooperating real estate broker... an experienced mortgage broker, a competent title searching/insurance provider, an attorney familar with LLC's and double closings, etc.
Since mortgagees prohibit obvious (the key word is OBVIOUS) assignments, newbies to short sale techniques will have an easier time by completing the purchase themselves.... The most profitable short sale acquisitions, in my opinion, result from the purchase, renovation/rehab of a physically distressed property, and resale to a retail buyer.
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Short Sale Practitioners can't predict, but can and should prepare.
<font size=-1>[ Edited by TheShortSalePro on Date 03/25/2004 ]</font>
Well, part of my network is in place. I am a mortgage broker myself, so I know who within my organization has the experience to do my deals. I have a great title company that I have used for a while as a broker, and they have an attorney on staff as well.
However, I am still looking for those ready and waiting purchasers and a real estate broker. The former will be the hard part I believe.
I was just wondering about the assignment because I have neither the funds nor the credit to actually get my name on the title of the property before I flip it. Any ideas on how I can solve this problem? A partner? A hard money lender? Thanks for all your help!
I have found that the best vehicle to address that problem/obstacle is the creative use of an LLC. Learn about how they work.... and how they can work.
If you are serious about working this end of the foreclosure market, spend an hour with an attorney who specializes in structuring business partnerships....
That is how my uncle has his partnership set up with his REI. Thanks SSPro for your help!