Deals but no financing

[Jenny Duclair]

I have two properties (a duplex and SFH) a family member is offering at deep discount, he needs to short sale. They are in Miami & I'm in WPB so, too far away for me to use VA or FHA as an owner occupant. Neither my credit score nor cash on hand will let me get in with a private lender. I'm thinking wholesaling is the only option remaining but I don't know where to start with that and frankly I am focused on acquiring my first duplex and hacking into landlording. I got my prequal letter in hand and I'm sending out offers so I don't think I have the time to start a whole new gig such as wholesaling. How can I make use of this opportunity?

[Lucas Machado]

@Brent Coombs raises an important point - all the seller can do is try to work out a short sale with the lender - they will have 0 control over the final price...An agent will have to list the property, they will have to take offers, the seller will sign one, then it will go to the bank for approval. The lender will get broker opinions on what it's worth, the lender will decide on a short sale price to approve, and then they will wait til they get that price, or until the BPO expires at which point the process will restart all over again. The seller can decide which offers to sign/not sign, but that won't have much impact on the approved price.

Another thing I don't think anyone has mentioned...The buyer & seller will most likely have to sign a HAFA Affidavit in which they confirm that they are "unrelated and unaffiliated by family, marriage..." If you were planning on not being the buyer for this exact reason, and you were planning to partner with another investor to step in as buyer and cut you a % of the profit, note also that the HAFA Affidavit says that if there are any "agreements, understandings, contracts, or offers relating to the current sale or subsequent sale" that they need to be disclosed to the lender. It's possible that disclosing that stuff won't blow up the deal, but who knows - it's up to the lender.

I'm not a lawyer, nor do I play one on TV, just speaking on my past experience buying short sales...