Short sale Flipping by a realtor
I'm thinking of buying short sale as an investor(not as a realtor), but keep the negotiation part so that I can negotiate for a lower price with lender and once approved, sell to end buyer for a profit. Has any realtor invested in short sale flipping recently? I would like to know how can we do this legally without breaking any rules and if possible then how do I find an end buyer who will buy for a higher than approved price but still lower than market. Can we list the house even if I'm not the owner? Can we do double closing same day? I'm new in this investing field,so any help would be appreciated from a fellow realtor+investor. Thanks.
Most Popular Reply
Can't speak for other states, but in Georgia, it's illegal for a licensed agent to advertise/market a property without a written agreement between the broker and the principal (the seller).
Given that, I don't see how it would be possible (again, in Georgia, at least) to market a property "as an investor not a realtor."
Here, that realtor would be breaking the law.
Again, in Georgia at least, any licensed agent acting as a principal (which your friend would be, as he owns more than 20% of the LLC that is doing the buying) is required to disclose this material relationship in the Purchase & Sale Agreement.
So, either the bank would know that he was the owner of the company that submitted the offer, or he would be breaking the law.
Independent of ethical issues, this would certainly be against the law where I live.