BiggerPockets

First I want to say I am glad I found this site.

My question is about Luxury home Flipping through short Sales. I got turned onto it by listening to a webinar held by a guy named Robb style of Florida. He was selling his system for $997. Would of paid for it but was afraid of being scammed.

In this webinar he describes how he would put a short sale offer into the bank. Then bring a short sale negotiator to deal with the bank. When he would final get a short sale approval from the bank, he would then go find a end buyer.

He said he had disclosure forms that would keep him from having to put earnest money down. And also had a transactional Lender help him do a back to back close. He stated that he would show how to get around the seasoning with the bank.

I was wondering if anyone could help me out with this process or even if it was possible. I have already track down some Transactional lender online. Never dealt with short sales and no nothing about these disclosures.

I Know how to find theses homes and how to market them. Looking for any help, comments, suggestions.

Thank You in advance

Paul

Ditto what Bill said. There arwn't any secret tricks, only unworkable theories. No "disclosure" will avoid having to put up EM or provide proof of ability to purchase. We don't accept "POF" from Internet lenders/sources either. The "getting around seasoning" is nothing new, using a Land Trusts (which short sale lenders won't allow) or assigning/selling interests in an LLC.

Your buyer will be the problem, while upper end properties are moving, you still have competition. Your holding period can be long and expensive. Your ability to access potential buyers is key, which was to my Brad comment above (he went to school with my son, LOL). 1.5M should be inline with comparable properties, you have a smaller market and you need to know what makes a winner to a more discriminating buyer, not just the average Joe. Flipping one would be along the same lines of building a 1.5m spec house, but worse since the spec would be new! :)

Great Guys thank for letting me know this guy is selling smoke and mirrors. Will have to do more research and and put a plan together

To add to all the great replies above, banks will make you sign an affidavit at closing that say you don't have any other deals in the works with regard to the property. If you have already lined up an end-buyer, you will be committing fraud by signing this affidavit.

I don't know much about the program in question but I stumbled across this post and I guess I am a little confused. It sounds like everyone is saying you can't short sell luxury homes. I am curious why it wouldn't work like any other A-B B-C short sale as long as you properly disclosed to all parties (seller, lender, and buyer) with appropriate addemdums, use transactional funds (they provide POF), and have the two separate stand alone closings? This way there is no holding period, right?

I would think the bank would be just as likely to agree to a $1MM property short sale as they would a $150K property short sale, maybe more so because it frees up a lot of cash in one shot. As an investor you should be able to turn a profit the same way you would with an average short sale, just on a larger scale.

Is my logic flawed somewhere? I am new to this so I could easily have missed something.

Thanks,
Bill

A house worth $1.5M and a bank short sales this at $1M um what world does this exist so I can visit there?

Bill I'm sure if they did grow on trees the hedge funds would beat us to them lol :)