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Short Sale Flips- the best way

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This topic contains 103 replies, has 0 voices, and was last updated by Avatar of homesavers NULL 12 years, 2 months ago.

Viewing 15 posts - 76 through 90 (of 105 total)
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  • #27847
    Avatar of homesavers
    NULL
    Member

    If there are two closings why don’t you just use the simple Option method using “flash funding”? I thought we were working a different angle on this? Sure you will have a possible seasoning issue but it is not the seasoning that underwriters are worried about. This is just an exception to title that is cleared with two deeds.

    Also you will not get details here on how Scott does this. You think he is going to give his REAP secrets to you? This is proprietary and something he has figured out doing deals for the past 7 years.

    I appreciate the intellectual discussion but I think we need to defer to Scott with the REAP program to get deals engineered. What is your objective to do them yourself without NARS and REAP?

    #27848
    Avatar of jerry carey
    jerry carey
    Member

    Homesavers:

    You’ve got to be kidding me!

    You said:

    Sure you will have a possible seasoning issue but it is not the seasoning that underwriters are worried about.

    You absolutely are going to have Title Seasoning issuses … not possibly :!: The whole thread has explained that if there is a sale to someone or entity and a resale to another end buyer … The end-buyer’s lender won’t fund the loan because of seasoning underwriting guidlines! No Funding … No Sale!

    The EHTrust eliminates the first sale … rather a reconveyance … and one sale to the end buyer! The only seasoning issues that arise here are from establishing a trust to do the reconveyance, which is what I been addressing!

    Using a simple option is fine except that it creates a cloud on the title which must be removed prior to end-buyer funding … meaning it cannot be paid for from the buyer’s funding. The option holder’s profit be must paid-off with other funds outside and before close of escrow!

    Jerry Carey

    #27849
    Avatar of jerry carey
    jerry carey
    Member

    Scott Moyes posted in this string:

    When using the Option method, you need to sell your Option Contract or Assign it for a fee prior to an End Buyer taking title. You cannot get paid your Option paid off from the End Buyer’s loan.

    This quote of Scott’s can be located on the first page of this string in the very first response posting by Scott Moyes!

    Homesavers … This quote is posted in case you disagree! That’s why I said … “You’ve got to be kidding me” … after an 6 page string of postings!

    Jerry Carey

    #27850
    Avatar of getsmart
    getsmart
    Member

    JC there is still the issue of two huds. the lender isn’t going to allow any proceeds and a title company that passes out funds and with holding that inform from the hud isn’t going to happen.

    no matter what, from what you say there will still be a need for two huds.

    #27851
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @GetSmart wrote:

    JC there is still the issue of two huds. the lender isn’t going to allow any proceeds and a title company that passes out funds and with holding that inform from the hud isn’t going to happen.

    no matter what, from what you say there will still be a need for two huds.

    You are correct, there are two full sets of HUDS. Since the Trustee already owns the property and since the use of the Trust does not create a seasoning issue (and yes I know some lenders and or title companies “may” have an issue with that… mine don’t), the negotiated Short Sale amount is simply “paid off”. The seller’s lender treats it like a Short Sale but since the Trustee already owns it, it is for our purposes a reconveyance and now is just like a “free and clear” property. The Trustee can now do anything it wishes with the property, as per the beneficiaries direction, like “sell it”.

    This is all done Simultaneously. Our PayOff happens just moments before our sale to our End Buyer.

    #27852
    Avatar of jerry carey
    jerry carey
    Member

    GetSmart:
    In addition to Scott’s post above … he said in the very same respone I posted above to Homesavers about selling the “Option” outside of Escrow and before closing …

    Using the EHTrust still requires 2 HUDS and 2 closes, not 1, but does not require …

    I’m amazed that you (GetSmart) and Homesavers, both long-time and expeienced participants in NARS transactions … don’t seem to know the basic steps involved in how to complete a “Short-Sale” type transaction via use of a NARS EHTrust :!:

    This is not new stuff … I learned it over a year ago from postings by Scott Moyes! You may not want to do them yourself, because there are a lot of phases to the transaction that have to be co-ordinated and completed to close … so you may well want to use the experience of REAP! Either way, you must understand the fundamental steps and proceedures! With HomeSavers’ and your (GetSmart’s) questions posed … it’s obvious to me that you do not understand the process! That’s O.K. … we’re all here to learn … but do your homework! I’m sure, too, that you guys are better versed than myself in other types of NARS transactions and methodology!

    Jerry Carey

    #27853
    Avatar of getsmart
    getsmart
    Member

    ok, now everything checks out. sounds like one of my post. i already knew the answer to this and just wanted to see someone else verify what i said.

    #27854
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Please folks, lets keep these threads on a positive note and eliminate personal attacks.

    #27855
    Avatar of getsmart
    getsmart
    Member

    @Scott_L._Moyes wrote:

    Please folks, lets keep these threads on a positive note and eliminate personal attacks.

    thanks Scott!

    #27856
    Avatar of homesavers
    NULL
    Member

    @Jerry Carey wrote:

    Homesavers:

    You’ve got to be kidding me!

    You said:

    Sure you will have a possible seasoning issue but it is not the seasoning that underwriters are worried about.

    You absolutely are going to have Title Seasoning issuses … not possibly :!:

    When I said it is not the kind of title seasoning underwriters are worried about. I mean they are looking for deceptive investor flips. Where the investor has defrauded the seller to Deed the property then have their hand out for some money from the end buyer’s lender.

    The A-B-C flip is two sales back to back. So you get easy private money for 2 points and buy then sell the property to the end buyer. Yes you have an Option recorded and this shows as an “exception” so it has to be dealt with. Everything is out in the open so the lender will know and approve it or they will throw out some deal killing condition. This is where you need to know what lender to use.

    The EHT is build for long term hold. Only Scott has perfected the short term EHT flip. Work with Scott if you want to do these.

    Heck, I am just trying to get some effective marketing going so I can closed some deals and make some money here. If I get some bone fide deals I know the Bill Gatten Center and REAP will help me. Otherwise, everything we type here is moot. Maybe I had better start looking on some marketing forums out there.

    #27857
    Avatar of jerry carey
    jerry carey
    Member

    HomeSavesrs said:

    When I said it is not the kind of title seasoning underwriters are worried about. … The A-B-C flip is two sales back to back. So you get easy private money for 2 points and buy then sell the property to the end buyer.

    ANY A-B-C transaction is going to shot down because of seasoning issues of “C’s” lender :!:

    What you are attempting to do is make the transaction an A-C deal bying you getting an option from “A”. This is will only work if the option profit … the difference between your (“B”) lower price with “A” and the higher price to “C” is paid-off in cash prior to and outside of the Close of Escrow. This requires “C” to have that money plus the required down-payment of 5-20%! This type of deal seems to me to be very difficult to complete because of the extra “Option” cash required by “C”! What you are claiming is that the Option is treated … “as an “exception” so it has to be dealt with.” which simply means what I said above … It has to sold/assigned and paid-off for escrow to close!

    Jerry Carey

    #27858
    Avatar of getsmart
    getsmart
    Member

    @Jerry Carey wrote:

    ANY A-B-C transaction is going to shot down because of seasoning issues of “C’s” lender :!:

    There are some lenders that will allow this to take place because there are lenders that don’t care about seasoning, the buyer has to have good credit and then the seasoning is not an issue. A few buyers have bought short sale flips from me with a lender and i receive my profit on the second sale. one thing you fail to realize is there is no option fee when you are doing a back to back closing. Each deal is a stand alone and needs separate funds.

    #27859
    Avatar of jerry carey
    jerry carey
    Member

    GetSmart:

    When I said

    ANY A-B-C transaction is going to shot down because of seasoning issues of “C’s” lender :!:

    I should have said with “C”s” conforming lender! Obviously if “C”is paying cash or using a non-conventional loan that doesn’t have to meet FHA or “Fannie” or “Freddie” guidelines … you won’t have seasoning problems. If “C” has this type of lender then just do the A-B-C transaction without an option … none is needed.

    SoCalGal and I have been trying to get Scott Moyes to name some lenders used to avoid this problem … which he claims he doesn’t know. You perhaps can give us some referral lender names you have used recently to complete these types of transactions …having said:

    There are some lenders that will allow this to take place because there are lenders that don’t care about seasoning, the buyer has to have good credit and then the seasoning is not an issue. A few buyers have bought short sale flips from me with a lender and i receive my profit on the second sale.

    Jerry Carey

    #27860
    Avatar of getsmart
    getsmart
    Member

    @Jerry Carey wrote:

    GetSmart:
    You perhaps can give us some referral lender names you have used recently to complete these types of transactions …having said:Jerry Carey

    sure i will give you one that is a large company to get your list started but you will have to do the rest on your own. Coldwell Banker.

    #27861
    Avatar of getsmart
    getsmart
    Member

    plus the way it was explained to me, a lot of the lenders seasoning has something to do with title insurance. so whatever title company you use, make sure they can provide a title insurance policy since lenders want their investment protected.

    also don’t everyone call the lender i mentioned to verify the seasoning issue, let one authority here verify because an over load of calls will always call for a red flag. so scott will you call to verify. don’t want the lender to get spooked by some seminar newbie that can’t really explain what they are talking about.

Viewing 15 posts - 76 through 90 (of 105 total)

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