Short sales . How would you experienced flippes handle this?
I recently made an all cash offer (with the help of HML) no contingencies except Short Sale Contingency, and Well and Septic contingency for a house that was listed at $129,000. My offer was $90,000. I got a counter offer for $100,000. I plan to counter that as well with something around $95,000. The ARV will be around $160,000 with repairs of about $30,000 and holding costs of about $8,000
However, the seller pushed back the dates from next two weeks of closing to first week of May and Bank approval of second week of April. I understand that the bank is trying to get the best possible price for the house and is trying to buy some time. So with this background information, I have a two fold question:
- What is the likelihood that seller is acting on his own and bank is completely in dark about this, or is the bank dictating what the dates should be on the contract, and seller is just obliging? (This question is so I know how to present myself. I never had to deal with Short Sales from the listing side)
- What would you investors do in this case. Would you be OK waiting a couple of months for deal that seems to be pretty good, if I do end up getting bank approval?
This will be my first flip. So far I have been buy and hold investor and time was never of essence to me. I was willing to wait. I have my eyes set on the goal of 2 flips for 2017.