Need some clarification

[Kimberly S]

I am a Realtor in Florida and I have an investor who would like to list a short sale property with me that he has an option on while he is negotiating with the owner's lender, so he can find an end buyer. I have never done a short sale flip like this and not that familiar with the process. I have been reading a lot of great information on the forums here and can see that it is a fairly common practice now days.

My question is, how can I list this properly on the MLS? I mean I can't list with him because I can't list with options. I can only do a listing agreement with the owner who's name is on the public records. (according to MLS rules). In which case I have to present all offers to the lender. So, I am a bit confused on this. I see that many of you use a Realtor to find the end buyer, so what am I missing? Any guidance would be greatly appreciated.

[Moe M.]

Hi Kimberly:

I get asked this a lot by realtors. The option contract, and Memorandum of Agreement (or Notice of Option), discloses that the buyer has the ability to market the property for sale while the property is under contract. This gives the buyer marketable interest. And remember, the Seller and Buyer are principals to this real estate transaction, not the Lender:

. Yes the lender has to approve the short sale, but you do not have a fiduciary responsibility to the bank, nor are you representing their interest. This whole idea that agents have to present all offers to the lender is incorrect. In fact when done correctly, the end-buyer you bring to the table will have benefited from the investor spending their time and resources to negotiate a great deal. Also the benefit of an investor buying a short sale and reselling is that we leverage our cash position to negotiate liens or conditions that may discourage retail buyers (ex. if there's a 2nd lender and they want more money). It can truly be a win-win situation for the seller, buyer, bank, agent(s), investor, and real estate market.

Good luck to you.
Moe