BiggerPockets

Hello to all,

I am relatively new to investing with just under two years under my belt. Yesterday, two of the homeowners I've been working with over the last few days agreed to sell me their homes through a short sales.

I am interested in wholesaling these deals to a rehabber. I understand the short sale contract typically cannot be assigned. I would greatly appreciate the help from the decades of experiece of the investors in this forum to figure out the best way I can wholesale.

In this market, is a double close ideal? Is it a land trust? Is it an option contract?

I've heard that lenders and title companies are getting weary of land trusts. I also understand a double close affects chain of title. And I've noticed more and more postings on the internet about using options to tie up short sales.

Any suggestions?

Thanks to all in advance!

Todd,

Just a couple of questions:

Are the properties under contract?
Have the banks agreed to sell them short?

thanks,

dave

That maybe true but you always need an exit strategy. So it's important to make these decisions now.

If you wanted to wholesale the Short Sale you could take the property subject-2 and the wholesale your subject-2 deal to an investor who does short sales or rehabs properties. If your contracts are set up right you should have 30-60 days to back out of the deal if you cannot locate an investor.

I try to market for shorts in areas I already have a network set up. It is much easier to find short sale clients that investors we have found.

Here you go:
The sales contract or agreement, lease or option, or rental of real estate by an unlicensed owner of real estate who owns any interest in the real estate if the interest being sold, leased, or rented is identical to the owner's legal interest" If a person signs a sales agreement then he/she has a type of equity ownership according to blacks law dictionary it is a form of doctoring that allows or grants a person the intended purchaser the right to hold a part of the realty in which you have bargained as a position in equity same as a realtor when they bargain or establish the commission structure however possession by true simple fee interest must be met by state conveyance laws the possession stops you from taking possession until a true passing of clear title occurs. The power of sale has been established on paper whereas you are now going to sell your equity for cash to someone. You have an established right of claim when all parties have signed your contract if this is the case then you have a legal contract your considered by your binding rights as an equity owner then you are backed by the state. Your a part owner but not owner in fact sense the majority of equity shares favor the sellers this is called fee simple ownership in many cases unless the property is owned outright with a clear title then ownership is considered a true owner of record. Then you have the right to sell market our investment property while you're under contract.

Aaron - doing the deal with a sub-to sounds like it would work. Anyone else care to comment on this approach?

Yes Scott. I think that for the present, if I come upon a deal that will require a short sale, I will simply pass it on to someone I know in the area that wants to buy and has is willing to deal with short sales.