Home foreclosures and short sales of a face of the
strategies involved in the work of "art". "Face" of the
core idea lender prevention (which is a broker price opinion and is based on
your conversation skills), the price at which the property can be sold to
another buyer is much lower than with a purchase price is negotiated.
The bank can accept and the final purchase price to the
buyer (including closing and other costs), the difference between what is big
enough, the "spread" in a number of savvy investors can lead to a
nice profit.
Usually this purchase and resale transaction (called back to
back, and the weak, A and B, or in a bar about a) the same day is also within
minutes of each other, or. The "old days", it was somewhat common for
a single source of funding for a full treatment and double document funded.
Prohibit lenders began again to change some of the language
in the letter of approval. The new language would prevent a single source of
funding from title companies to conduct transactions to double from close
range. Everything worked in the investor community was over an independent
source of funding for the purchase (one side) and a separate source of funding
for resale side (end buyer, B side) is.
The two sources of funding resulted in two different
endpoints.
Hard money lenders, so-called "cash-flash" buy
side agreement with (a part of) a double closing short sales with the necessary
funds to provide investors emerged. This technology is still in play today, but
can come to an end.
Recently, a new verbiage in the letter of approval has been
linked by some lenders. The first is:
"The closing of this transaction is a transfer of
ownership within 30 days. "
And now a new one to replace the verbiage was added as an
amendment to the escrow instructions:
"If the buyer or the seller had knowledge of, or belief
in the deal with any sale or other transfer will be in conjunction with, or
together, you should notify the Settlement Agent. Settlement agent combination
of knowledge or confidence or information as will happen with this deal, or
together with any sale or other transfer, settlement agent to proceed to obtain
a written authorization should contact the lender or the approval null and will
be considered void. "
Okay. I hear you already, just "Flash Cash" off
before use and separated from the other end (what, in fact about 30 days, which
means there is some debate). One issue that I see that the old way, and investors'
Cash Flash "was protected from damage because the same day and resale
transactions (side B) is closed usually on the financing closed in warranty is.
the big issue is that these lenders' cash Flash "and nearly 100% of fair
market value and the amount of time that the lender must take place between the
first and second closing held in the same place for about resale goes.
It will be interesting to see what will be in action at the
investor market.
We guide our program to talk more about this in surfing.
After years of doing these calculations on the one hand, my partner and I have
put on the internet on real estate and software to make our life much easier.
We now offers whimsical and seconds can decide the exit strategy.
To your success,
Tom and Sven