Howdy, I ask this because I trust my fellow naky-vestor friends. So who has the best short sale course out there, I need to learn. Thank You, Diver

What are your intentions. Do you want to buy SHORT or do you want to short and flip?

Jonathan, For now I want to short and flip. I,m trying to figure out getting a home under my Option to Purchase Agreement, locating a buyer for my contract and then releasing my contract at closing for a fee. On the HUD-1 call it release of encumberance or whatever title co. wants. Just an idea but I should have such a deal today. Am I way off or could something similar work. Diver

Ok. I am not a fan of Short Sale flips and won't do them. I know what you are doing. I cannot reccommend a Short Sale course. I know there are hundreds out there. If you want a basic course Lou Brown has one on his website.

Thanks for the info. Jonathan but why won't you do the short sale flip? I don't want to do something illegal. Diver

This is my belief. I am against Option Flips and regular flips when it comes to a short sale with back to back closings.

The seller is left in a lesser position financially with a greater tax burden and possible deficiency judgment.

The key to a short sale is that it more than likely has to be listed.

So the realtor is going to do there job to find a buyer for the property.

Lets use real numbers.

3/2/2 owed 325K
Worth 180K
Investor options the home from seller for 140K
BPO is ordered and the value is established at 180K.
In the mean time it is listed for 180K and then dropped to 170K.
All of sudden it contracted for 170K.
Bank settles for 145K

25K is on the table.
Bank pays the short sale agent 3%
Investor pays realtor 3% or more out of 25K plus all other closing costs.

When the dust settles. Seller now has either a tax gain 180K or possible deficiency or maybe some other work out with promissory note.

Now if investor cannot get the price they want on the home and realtor has it under contract then it may close direct between seller and buyer. But if investor is hard nosed it can be an issue.

I am just not a fan. I am doing short sales but as an agent. I can still get a nice check.

OK I see your point but thats not quite what I was wanting to do. I want to get the home under an Option contract, find a buyer and then release my contract for my fee at closing. The seller works for a bank, not the one holding the mortgage and we figure between the 2 of us we can do the short. I told him first we need an offer from a buyer thats where I come in. Diver

Not going to happen. You will not get a release fee from a short sale. If there is any cash left on the table the short sale approval letter will insist that it goes to the lender.

Best play for a short sale is the flip method as I described.

Investor Option from seller. Investor works the short sale with lender and seller. Realtor finds buyer. Investor records a memorandum of option. When buyer is found and Investor is closer to get his number then closing is arranged. Investor funds his side with REAL MONEY (No Release) and Then sells to end buyer. The spread is the play.

Thanks Jon, Good point I wasn't thinking. Diver