Most banks will not allow you to assign a short sale. The entity on the contract must be the entity that buys. Additionally, many short sales have contractual limitation on when you can resell, so double closing is probably not an option.
What you CAN do, is "borrow" the funds from the end buyer, and write up something like a purchase option agreement that allows them to purchase the house from you when holding period is over (essentially eliminating the mortgage they hold, giving you your fee and transferring title) maybe with a power of attorney given to them to execute your side of the deal. This is riskiy for the buyer, though, so there needs to be a lot of trust.
Alternately, you could form an LLC, secure the deal (you'll need to have an accepted offer and will need proof of funds) and then sell the LLC just prior to closing to the end buyer for your wholesale fee.
Wayne it is a double close. The seller closes with the land trust and second closing happens when the beneficial interest is sold to the end buyer.
Have you closed a deal this way yet? Seriously, I'm all ears for details on a land trust/beneficial interest double close strategy. It's sounds far-fetched, but I want to understand it if it's actually do-able. I think my escrow officer would freak.
The 2nd closing, the one where the land trust "sells" its beneficial interest.....that's not a deeded transaction, correct? So, the seller deeds the property to the land trust. The land trust becomes the owner of record. The land trust sells then sells their beneficial interest to the end buyer. The end buyer is the one funding the buy escrow which flows backwards to the sell escrow. But the end buyer isn't the owner of record because they own beneficial interest in a land trust, correct? Yikes
I know im late to the party, but what if I was to create a lease purchase agreement for the Investor. The down payment was broken up into a 1st payment and equal monthly payments up until the seasoning period ends totaling my assignment fee. Then a ballon payment for the purchase price.
I know im late to the party, but what if I was to create a lease purchase agreement for the Investor. The down payment was broken up into a 1st payment and equal monthly payments up until the seasoning period ends totaling my assignment fee. Then a ballon payment for the purchase price.
A lender won't let a party to the transaction benefit from the reduced price.