I think you mean contingencies like financing or inspection. Yes, you could use those and use them to get out of the contract. Really bad, I think, to work with someone and get an approved short sale then back out. If a seller, a distressed homeowner, has gone that far, you really need to try to hold up your end of the bargain. Even if it means getting a loan and closing yourself. Just my opinion.
I don't imagine working with a realtor being a problem provided the realtor has a sense of what you are doing as an investor. But if I am understanding correctly, you are saying to find a investor/buyer first then submit the offer to the bank on behalf of the investor/buyer?
I understand that typically when a bank approves a short sale, one of the conditions of approval is that the contract cannot be 'assigned'. This is why double closings makes sense. Thanks Jon
The best exit strategies for a short sale is a double close. Basically what you want to do is to start to market the property once you get it under contract. I start to market my properties once I start the negations with the bank. My contract are written up in that way so it is all disclosed to the bank and they know I will be selling the property for a profit. I have not had a bank yet tell me that I can not do this. Because once I close with them they don't care if I sell it for 100K more than I bought it for. If you can not find a person to buy your property right away either a end buyer or whole sale buyer I do an auction on the property. That way I know for the most part I will have my end buyer by that weekend. I hope that helps you out.
I never thought to use an auction. Is that option expensive? How do you fund this option? Do you have a sample contract that I could look at? BTW, check your inbox.
I could help you out with auction paper work... a good book to pick up would be how to sell your home in 5 days.. Its a good place to start. As for the contract I can help you out with that also...Basically you would need
Bid sheet
Purchase and Sales contract
Signs around the property
News paper ads
Online ads
auction rules
I think you mean contingencies like financing or inspection. Yes, you could use those and use them to get out of the contract. Really bad, I think, to work with someone and get an approved short sale then back out. If a seller, a distressed homeowner, has gone that far, you really need to try to hold up your end of the bargain. Even if it means getting a loan and closing yourself. Just my opinion.
this assumes that the price the bank agrees to is a good enough price. They may 'approve' a short sale that has too slim a margin to be profitable. This is a business not a charity. Use the contingency to cancel the contract before buying at a loss.