exit strategies for short sale

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.

Edited: 06/26/2010 at 05:36AM

Jon Holdman, Flying Phoenix LLC

Dave P.

Real Estate Consultant

826 posts
316 Influence
4 Awards

Icon_minipost Aug 01 '08, 08:36 AM

Amen Wheatie.

Edited: 06/26/2010 at 05:36AM

Cliff Bradshaw

Real Estate Consultant · Triangle, Virginia

45 posts
48 Influence
1 Award

Icon_minipost Aug 05 '08, 05:55 AM

Does anybody know the legal way to wholesale a shortsale to a rehabber or how to work with realtors who sends you a shortsale?

Edited: 06/26/2010 at 05:37AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost Aug 05 '08, 07:01 PM

Double close? Close yourself and then resell? Why would having a Realtor involved be a problem?

Edited: 06/26/2010 at 05:37AM

Jon Holdman, Flying Phoenix LLC

Cliff Bradshaw

Real Estate Consultant · Triangle, Virginia

45 posts
48 Influence
1 Award

Icon_minipost Aug 05 '08, 10:15 PM

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?

Edited: 06/26/2010 at 05:37AM

Dave P.

Real Estate Consultant

826 posts
316 Influence
4 Awards

Icon_minipost Aug 06 '08, 07:00 AM

You could probably do an assignment of contract for fee.

Edited: 06/26/2010 at 05:37AM

Cliff Bradshaw

Real Estate Consultant · Triangle, Virginia

45 posts
48 Influence
1 Award

Icon_minipost Aug 06 '08, 08:44 AM

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

Edited: 06/26/2010 at 05:37AM

Dave P.

Real Estate Consultant

826 posts
316 Influence
4 Awards

Icon_minipost Aug 07 '08, 04:42 AM

Typically, not always.

Edited: 06/26/2010 at 05:38AM

Account Closed

18 posts
-89 Influence

Icon_minipost Aug 10 '08, 03:42 AM

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.

Edited: 06/26/2010 at 05:39AM

Cliff Bradshaw

Real Estate Consultant · Triangle, Virginia

45 posts
48 Influence
1 Award

Icon_minipost Aug 10 '08, 04:25 AM

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.

Edited: 06/26/2010 at 05:39AM

Account Closed

18 posts
-89 Influence

Icon_minipost Aug 19 '08, 09:04 AM

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

Edited: 06/26/2010 at 05:43AM

Jacob Ball

Real Estate Coach

2 posts

Icon_minipost Aug 20 '08, 03:29 PM

Originally posted by Wheatie

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.

Edited: 06/26/2010 at 05:44AM