There are lots of short sale funding companies out there now that will provide the cash for you to purchase a short sale from the bank with none of your own cash required.
However, after your short sale is approved by the lender, and you have the funds in place to purchase from the lender, these short sale companies, also referred to as transitional lenders, will require that you already have a new buyer in place to immediately purchase the short sale property. If you can't find a buyer who can qualify for a new loan, then what?
You now have to find a buyer who can qualify for a loan, and who has a down payment to purchase the short sale from you, or risk losing your short sale approval from the bank.
Because of the present credit crunch we are all experiencing, this has made it increasingly more difficult to attain a qualified buyer. Therefore, it is evermore important that you expand your demographics by providing creative solutions for your potential buyers by structuring a form of seller financing that will allow your new potential buyer to purchase the short sale home from you with little, or NO Money Down!
Just think, if you could offer your short sale home at a tremendous discounted price, and do it without requiring a down payment from the new buyer, how many more potential buyers would you reach over and above the competition. You would be the answer to every new home buyer's wet dream!
Well, there is a strategy that can be used to accomplish just that. It involves you as the seller providing a seller concession, or credit to the buyer at closing which would be equal to the amount of the required down payment.
Now, there are several moving parts that need to be employed in order to execute this strategy. You will need to have a conventional lender in place that will allow for the seller concession, and the amount of the allowable concession will need to be enough to cover the amount of the down payment, if not, there is an additional strategy that can be implemented in order to overcome the concession deficiency.
However, we recommend that you contact a mortgage company that understands the unique requirements that a real estate investor has, with an extensive understanding and background in creative finance, and how to structure them. One such company that we would recommend is .
Remember, finding a new buyer that will qualify for a new loan is the key to completing a successful short sale flip transaction. Without these final elements in place, your short sale approval, along with your transitional short sale funding mean nothing, if you can't complete your short sale transaction, and access the profit you have built into the deal for yourself.
We hope you'll take advantage of this information, and we wish you good luck! The opportunities are abundant, and waiting for you. Seize them, and take control of your financial destiny.
