By Josh Cantwell:
“IF YOU ARE A LAND TRUST SHORT SALE INVESTOR – YOU HAVE A BULLSEYE ON YOUR BACK AND YOUR WALLET!” - Quote from attorney JEFF WATSON Esq.
When most investors start a short sale they initially think about how they will discount the debt and then buy the property. Of course the next step is to rehab the property and sell it for a profit. Buy-Fix-Sell- CASH PROFIT CHECK. Easy enough.
Problem with short sales is this. Most short sale investors do not have the money to buy, then fix, then sell. They just don’t have the resources. Also some discounts are not BIG enough to allow the investor to buy, fix then sell for a profit. We don’t want those deals to go to waste.
SO WHAT’S THE SOLUTION? QUICK – TURN THEM for a profit. Buy and sell in the same day.
Some of you know this and your first thought is to assign the short sale contract. HUGE PROBLEM! KEEP READING!
Another thought is to quick turn it through a simultaneous purchase and sale. HUGE PROBLEM! KEEP READING!
HERE ARE THE MAJOR ISSUES with flipping short sales THAT THE "GURU's" AREN'T TELLING YOU
1) Short sales cannot be assigned - the lenders ALL put that restriction right into their approval letters - the buyer cannot be substituted. Short sales cannot be assigned. PERIOD!
2) Seasoning problems. If you are doing a double close you run into SEASONING PROBLEMS with the end buyer getting a loan/financing to close. Most short sales are bought by an end buyer who is going to get financing from a mortgage company/bank. Well all those lenders have SEASONING REQUIREMENTS. When you buy and sell quickly you create a seasoning problem.
In order to satisfy the seasoning requirements LAND TRUSTS were used. Investors would buy and sell using a LAND TRUSTS. Problem is lenders, banks and the lawmakers got smart.
If the people you have learned from aren't bringing this up they are not telling you the whole truth.
Quote from attorney JEFF WATSON Esq - “IF YOU ARE A LAND TRUST SHORT SALE INVESTOR – YOU HAVE A BULLSEYE ON YOUR BACK AND YOUR WALLET – now this is coming from an attorney. One of the best in the country I might add.
The DEATH OF THE LAND TRUST report is on the way. AND so is the solution to the problem.
