OfflineI'm out in SoCal & I heard someone talk about short sale to wholesale with No Money and No Credit. Does anyone know how this deal is done from A-Z?
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Short Sale to Wholesale
Posted on: Fri, 07/13/2012 - 08:29
I'm out in SoCal & I heard someone talk about short sale to wholesale with No Money and No Credit. Does anyone know how this deal is done from A-Z?
The information you request could be as long as an Ernest Hemingway Novel. There are so many ins and out to a deal like that. I would suggest you learn the short sale process first. Can take up to 6 months or MORE. Wholesaling and doing this with zero down will take a real cash buyer and his money for the A closing. Got one?
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions
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http://www.mdlodeals.com Tenant/Buyer site
Oscar,
Welcome to the DG family. You are over thinking this.....Wholesale is your exit strategy once you have the property under control (i.e. a contract to purchase the given property for a given price). Short Sale (in your scenario) is your method of gaining control of the property from the bank, prior to it becoming REO.
Understand that short sales are not a quick process. Banks may take several months to evaluate your offer, counter offer your offer, and finally come to an agreement. Your homeowner in trouble will have to provide documentation that they do not have the means or any realistic hope of ever correcting the deficiency with the lender and CANNOT PROFIT ONE (1) PENNY from the entire transaction.
The bank is basically agreeing to take less money than the balance owed on the note as payment in full since the homeowner is in trouble and unable to rectify the situation. Down the road a year or two, the homeowner may get a 1099 for the difference from what the banks accepts as payment in full and the balance owed...but that is a whole different verse to this story.
Good luck with this concept; it is do-able if you are patient.
--Walter
"If it is to be, it is up to me". -Anon
Walter!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
-Michael
Yes I have a cash buyer. I have sellers too but I wanted to know how to structure the deal. am I doing a double close? & if so, am I going to have to use transactional funding or is there a way not to? Do I need a real estate agent to negotiate with the bank? or can I write up the offer myself? I have everything in place as far as the motivated seller & the buyer.
-Walter
You're right I may be over thinking it. I am aware that the process can take time I'm not too worried about that. The Seller doesnt even have a job so there is no way they would be able to repay the default & is upside down on the property. I have pretty much everything in place (seller & buyer) I just need to know how to structure the deal because its my first time. Am I doing a double close? Do I need transactional funding?
-Michael
You mentioned I need to use a real cash buyer...how? How am I structuring the deal & still get my payment for the deal?