NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1509 topics, 14385 posts — Last Post 04/18/14, 10:36AM

BiggerPockets Exclusive PRO Area

117 topics, 839 posts — Last Post 04/18/14, 05:47AM

New Member Introductions

10875 topics, 85523 posts — Last Post 04/18/14, 10:48AM

Real Estate Success Stories

394 topics, 6131 posts — Last Post 04/18/14, 10:13AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5930 topics, 46742 posts — Last Post 04/18/14, 10:58AM


643 topics, 5820 posts — Last Post 04/18/14, 08:38AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

654 topics, 6263 posts — Last Post 04/18/14, 10:24AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3670 topics, 29428 posts — Last Post 04/18/14, 11:09AM

Real Estate Guru, Book & Course Reviews and Discussions

1132 topics, 11551 posts — Last Post 04/18/14, 10:12AM

Ask About A Real Estate Company

740 topics, 7317 posts — Last Post 04/18/14, 10:28AM

Real Estate Investing

Real Estate Strategies


5594 topics, 43698 posts — Last Post 04/18/14, 10:57AM

Rehabbing and House Flipping

3329 topics, 30958 posts — Last Post 04/18/14, 11:09AM

Real Estate Development & New Home Construction

552 topics, 4679 posts — Last Post 04/17/14, 10:10PM

Innovative Strategies

703 topics, 6027 posts — Last Post 04/18/14, 08:48AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

865 topics, 6668 posts — Last Post 04/18/14, 08:43AM

Rent to Own a.k.a. Lease Purchase, Lease Options

692 topics, 4872 posts — Last Post 04/18/14, 08:57AM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11285 posts — Last Post 04/17/14, 06:41PM

HUD, VA, and Tax Sales

414 topics, 3088 posts — Last Post 04/17/14, 07:35AM


1214 topics, 10570 posts — Last Post 04/17/14, 02:28PM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7194 topics, 70675 posts — Last Post 04/18/14, 11:05AM

Mobile Homes & Mobile Home Park Investing

638 topics, 5139 posts — Last Post 04/18/14, 06:11AM

Investor Basics

Starting Out

7694 topics, 60403 posts — Last Post 04/18/14, 11:08AM

Investor Psychology

430 topics, 6098 posts — Last Post 04/18/14, 10:35AM

General Real Estate Investing

4711 topics, 37164 posts — Last Post 04/18/14, 08:52AM

Real Estate Investor Marketing

1730 topics, 14091 posts — Last Post 04/17/14, 06:21PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1409 topics, 8983 posts — Last Post 04/17/14, 06:13PM

Multi-Family and Apartment Investing

1106 topics, 9200 posts — Last Post 04/18/14, 10:48AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

638 topics, 4884 posts — Last Post 04/17/14, 02:08PM

Business Basics

Goals, Business Plans & Entities

831 topics, 7560 posts — Last Post 04/18/14, 11:09AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2784 topics, 19998 posts — Last Post 04/18/14, 08:30AM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2730 posts — Last Post 04/17/14, 04:56PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2830 topics, 19685 posts — Last Post 04/18/14, 10:40AM

Creative Real Estate Financing

1208 topics, 8764 posts — Last Post 04/18/14, 11:02AM

Crowdfunding Real Estate

35 topics, 459 posts — Last Post 04/18/14, 09:06AM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1208 topics, 7967 posts — Last Post 04/18/14, 11:04AM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/18/14, 09:39AM


267 topics, 1676 posts — Last Post 04/18/14, 07:43AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1986 topics, 11599 posts — Last Post 04/18/14, 08:46AM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 428 posts — Last Post 04/18/14, 04:22AM


Real Estate Marketplace

Real Estate Marketplace

15007 topics, 53927 posts — Last Post 04/18/14, 11:01AM

Real Estate Events and Happenings

163 topics, 2490 posts — Last Post 04/18/14, 08:49AM


Off Topic


2903 topics, 32402 posts — Last Post 04/18/14, 07:21AM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Short Sales » Luxury home flipping

Luxury home flipping

16 posts by 9 users


· Mesa, Arizona

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


Real Estate Investor · Springfield, Missouri

Welcome to BP!

Save your money it's all discussed here, there are no secrets in RE!

In reality the listing agent will set up a firewall with luxury homes, you'll be showing good funds before going inside!

And just go find a buyer? How are you going to approach Brad Pitt?

Well yes, luxury to me begins with a 10 million dollar home, maybe you meant "nice home", to do that, it's all here!

I just saved you $997, I hope. :)

Financexaminer@real estate investor dot com

· West Palm Beach, Florida

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.

· Mesa, Arizona

Thanks Bill and Wayne for your response.

Nope I did not spend $997.

When I say luxury I meant over a 1M. He used an example like:

House FMV is 1.5M. Get a short sale approval for 1M turning around and selling the home for 1.2m to the end buyer

I have done lower end flips before but this method I wanted to try.

So, is their any right way to flip high end short sale other than buying the property , fixing it up wait for the seasoning then turning around and sell it.

I always eager to learn.

Real Estate Investor · Springfield, Missouri

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! :)

Financexaminer@real estate investor dot com

· West Palm Beach, Florida

The assumption in the example is where the true fantasy lies. A short sale lender isn't going to let a property with a FMV of 1.5M, go for 1.0M.

· Mesa, Arizona

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

Rehabber · Santa Clarita, California

Programs like this are so common and promise the dream but deliver the nightmare.
Sounds real easy and simple, right? If it really were, this person would be doing it and making $100k+ rather than selling some crap program for $1k.

Finding buyers for $1m properties typically takes a tad longer, secondly, banks are wise to this middleman process and make it as difficult as possible on you now.

Lastly, with the current market conditions, banks are not letting things go for much of a discount these days, so the example of a property bought at $1m that could sell in as is condition 30 days later for $1.5M is a fallacy at best.

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]

Real Estate Investor · Ellicott City, Maryland

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.

Small_lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Telephone: 770-906-6358

Real Estate Investor · Audubon, Pennsylvania

Sounds similar to this other "program":

Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183

Real Estate Investor · Littleton, Colorado

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.


Rehabber · Santa Clarita, California

Bill, you are missing some key points. None of us are saying that banks don't approve short sales on $1M+ properties, what we are saying is that the spread to make it work by purchasing existing, selling existing and having a large enough spread along with finding that one buyer is difficult at best.

These programs promise things and state things that are just not likely.

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]

Wholesaler · Altus, Oklahoma

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

Real Estate Investor · Littleton, Colorado

@Will, Thanks clearing that up. I guess I just assumed that the spread would be proportional to what it is in the 3/2 housing market since it's the same process.

@James, ya wouldn't it be nice if $500K spreads were just growing on trees like that. I'd be happy if after paying everyone out, I made $20K, LOL

Wholesaler · Altus, Oklahoma

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

Real Estate Broker · Orange, Connecticut

A great wholesaler has the buyer first!

He 'finds the buyer after approval' so he can avoid any issues with non-disclosure of higher offers. It's not a bad idea, but I would still know WHO you are going to sell to from the beginning.

As far as 90-day seasoning .. just avoid banks that have that disclosure. (If you work with a short sale negotiator, they should be able to check their files and approval letters for these clauses).

You will probably want to do this with non-mls details to avoid agent road blocks.

Lastly, you will want an agreement that the buyer (who I assume is cash) will lend you funds to close on your side of the deal during the double closing. (They are not supposed to double-close with money just on paper)

Small_topendlogo_gold_med2Phil Z., TOP END Properties
Telephone: 203-936-7776
TOP END Properties - Connecticut Broker & Investment Specialist

Sign up