All Forum Posts by: Herm M.

^ I can't put an interest rate restriction in my A-B contract because that is supposed to be a cash offer (funded by transactional lender).

I think this is the way I'm going to try it. I'm going to have the end buyer put up the deposit for the A-B transaction, In actuality, they are putting the money as a deposit for the B-C contract....but I will use their funds for the A-B contract. That way, if I need to forfeit my deposit because I want out of the contract (because my end buyer can't close), it's the end buyer's loss.

And actually now that I think about it, I thought it was Justin who gave me that advice about the end-buyer contingency in the B-C contract.

Also, I've spoke with about 4 title companies in my area, and none of them are willing to do a back-to-back close.

This is a back-to-back closing, not a double closing. Well from what I understand, a double-close involves the C buyers funding closing both transactions. And a back-to-back involves each party providing their own funding (this is where the transactional funding is used for the 'B' party).

I'm 99% sure that I read advice on BP somewhere. This is the place where I've been doing all my research and learning, so it couldn't of been anywhere else.

So I've read that we need to put a contingency in our offer to the short-sale lender. This contingency will say something along the lines of "this contract is valid if, and only if, the investor (buyer) is able to find an end-buyer for the property."

That way, we can get out of the contract if the end-buyer can't close the transaction.

Is this accurate?

Assuming it is....what is the rejection rate of these offers? How likely is it that the short-sale lender will accept this type of offer?

The A-B transaction will be funded by a transactional lender.

The end-buyer needs to be approved for a conventional loan first, of course. So is it a good idea to include their loan approval and/or credit report with the A-B offer, showing the short-sale lender that there is a serious end-buyer who is qualified? Will that help get the offer accepted?

And damn, am I the only one who likes creating threads in this forum??

^ are all those numbers up to date? So there's actually banks out there giving out purchase loans to people with a 620 score at 95% CLTV?

Actually I see the thread with the list of C lenders....so let's change this topic to address only the following question:

What short-sale lenders will allow a "B" buyer to flip the property to a "C" buyer with no ownership seasoning requirement?

Okay so I understand that FHA wants 90 day seasoning from the current owner in order for them to approve a loan for the end buyer.

Can we make a list of short-sale lenders who are okay with the B buyer selling at any point? Which ones are okay with back-to-back closing?

Also, which lenders don't have a problem with the end-buyer financing a home that was just recently sold A-B?

I have a couple buyers that I need to qualify for a home. I will find the home for 260 or so, and use a bridge lender to flip it for 300k+. I want to know which lenders to apply my end-buyer with.

Also, there's a couple properties (uncles') that I am going to try to negotiate a low approval and find an end-buyer for. The first property has a first and second lien both held by Chase. The other property has only one lien, held by ING.

Will any of these lenders have a problem with an ABC flip?

^ so we can't use a transactional lender if BofA is the short-sale lender?

^ got it. I was under the assumption that the OP is a realtor...so I was thinking he was just going to have to pay the listing agent in the first transaction.

^ Thanks for covering all the bases. I've actually already set this realtor up with my uncle, so I might just walk-through this one with her and convince her to do 50-50 on this one....and then the next one I'll try on my own.

Any references to these transactional lenders? Are they just hard-money guys who charge 5% or so?