Short sales

[Tarrin Lilly]

Hey guys, just wanted to introduce myself, I'm Tarrin Lilly from Baltimore MD, looking forward to tackling a lot of real estate transactions this year, Anyone experienced on wholesaling short sales, proper exit strategy to minimize risk?

[Antonio Lopez]

What you will need:

1. Marketing List

2. Real Estate Agent

3. Proof of Funds or Cash in Bank

4. Short Sale Negotiators (May be the title company)

5. Title company

6. Buyer's List

First thing you do is market to your target market i.e. pre-foreclosure properties.

Next find a real estate agent willing to work with you on your short sales.

Once you find a homeowner willing to sell you the property through short sale, get an agreement together with them. Have them sign the exclusive right of sale agreement for your agent and the as-is sales agreement.

Next make sure you have all the paperwork required from the bank. The negotiator/title company should be able to guide you with this.

After the bank receives the short sale package the bank will send a BPO agent to assess the value of the property.

After this, the negotiations begin. Make sure your negotiators are good.

You should receive an Approval from the bank with the amount they want. This is the important part because your contract with the homeowner becomes an equitable interest in the property and you should be able to wholesale it. Now is the time to market to your buyer's list! Some details that you want in that approval are the waiver of deficiency and hopefully some relocation funds for you seller.

If you can't find a buyer, market the property as an approved short sale for the seller's sake and because its the right thing to do.

If the price is still too high and you can't sell it, you want to have an inspection done by a trusted contractor. Use that report to negotiate and send it in to the bank. Your negotiators can help with the submission of the contractor's report.

I believe every state is different. Id check with the local REIA. I hope that helps.