Short Sale Flip

**agentsranking** · 11-06-2008, 05:46 AM

I've heard there are some legal strategies for flipping short sales has anyone been doing this recently. Some of the strategies I've heard of people using a while ago were through a Trust or through an LLC and transfer of LLC shares to the new buyer. Has anyone used any of these methods recently or is anyone using another method that works?

**Codythebest** · 11-06-2008, 07:52 AM

Flipping the LLC or trust to the public is very difficult because of lack of knowledge. You better avoid that IMO...

**fmike630** · 11-06-2008, 01:09 PM

A more common way to flip a short sale is to have a dual close. You make your money at closing.

**Codythebest** · 11-06-2008, 03:21 PM

Originally Posted by fmike630

A more common way to flip a short sale is to have a dual close. You make your money at closing.

Neah....forget dual closings. You name even appears on a deed and you need to report to IRS. Avoid the dual closing by flipping the contract instead..

**agentsranking** · 11-07-2008, 08:18 AM

When you say flip the contract I assume you are referring to the purchase agreement. If I understand correctly you are suggesting an assignment of the PA. Every short sale I've done the bank has stipulated in their approval letter that the buyer must be the person stated in the original purchase agreement submitted with the short sale package. If I flip the contract the person closing on the property will be different than the bank approved and they won't close the deal.

What am I missing?

**Codythebest** · 11-07-2008, 09:58 AM

Nothing. You are correct. 99% of the time, the bank doesn't want to see an assignement. Flip the LLC then...
Flip the contract if it's not a short sale, which is, these day, no different than real life...

**Fate** · 11-28-2008, 09:55 AM

Double closings can make you alot of $$, I did a lot of them in the past. If there is a loan involved they are almost impossible now. Assignment can work. If you are a licensed agent, you can charge it all to commission and avoid the higher taxes of a double but will not make as much. An assignment lets releases info on what you are buying it for. If you do a double, make sure your disclosures are in the contract correctly to avoid any possible lawsuits. You have to disclose to Seller you plan to sell for a profit, hold or Wholesale the property. The new buyer must be aware the contract is contingent on seller getting transferable title prior to escrow. If you are a Realtor, you must disclose this as well.

**hassansr** · 12-02-2008, 05:03 AM

Just do an option to close it out. Dont get greedy on the fee

**100kRealEstateCoach** · 12-02-2008, 08:35 AM

It really depends on the bank. Some banks are ok with this and others are very against this and state that in their paperwork. Your best bet is to use full disclosure at every turn and document the whole process. I agree with Hasaan. Don't let greed ruin your career. Proceed with caution.