BiggerPockets

Has anyone successfully closed a wholesale on a property that was originally a short sale? Meaning a realtor was negotiating a short sale for a homeowner, you ( the wholesaler ) submit an offer to the realtor, it gets approved by the bank, and get the property under contract. Then find an end buyer and double close.

If this was possible it would give wholesalers many more properties to target ( at least in FL ).

I heard a lot of hype on this "new strategy" which ended in pitching a $500 course (figures). I look forward to hearing your thoughts / ideas.

Steph I know you have this course! Have you closed a wholesale this way?!?

It's easier if there is already an approval letter for x amount

Eric, the process to short sale double close would be very similar as any other double close. One thing to watch out for, look very closely at the approval letter from the lender. Some have been putting resale restrictions as conditions to the approval letter prohibiting the property from being sold for 30 days. Though the restrictions I've seen are not past 30 days, if you are looking for a true double close which is usually immediate transfer and not generally a hold scenario, this could be problematic. Due to this, to further complicate the matter, underwriters will not insure the property for a closing inside of the 30 days as they've had claims by the lenders for violation of the restriction. Lastly, remember that in these scenarios, the release of the lien position of the mortgage against the property is solely contingent upon the fulfillment of the approval letter and if not, they may file to reclaim the property and continue the foreclosure process. Just letting you know from a title co perspective...it has served my investing business well..