Wetting my feet in Real Estate with Short Sale

[Nadir Malik]

Hi all! I found BP by accident and amazed with the wealth of knowledge and information I have found so far so first off job well done to the creators and the awesome community out here!

Well here's my story: My business partner and I are going to purchase a 3100 sq ft 2 story house with 3br/2bath and we are going to be able to purchase it for 90k including taxes and closing costs on short sale. He's going to co-sign and put up the cash for the closing costs and I am going to get an FHA loan with the 8k tax credit. The house was built in 2006 in Victorville, CA and all that it really requires will be minor patching and painting and re-carpeting which my partner stocks thousands of feet of in his warehouse and has a GC he employs that will take care of that with less than 8k of direct capital. The work on the house is minimal as it had a military family as tenants about a month ago but they were redeployed so had to move out.

The owner is going to let the house go into foreclosure due to a personal bankruptcy and moving out of state so he needs to dump the property as he owes about approximately 200k on it.

We are planning on buying the house and flipping it within a 5 month period. The median housing prices on that track are 165k+ but I know that doesn't necessarily mean squat but just thought I would mention.

Partner is very trustworthy as I have a longstanding relationship with him and I just need some guidance if there is any other information I am missing and need to obtain or if everything seems to be in order.

PS The short sale cost was thru a Realtor and the mortgage on the loan will run about $1000/month.

Any words of encouragement, skepticism, or help would be appreciated. Looking forward to contributing more and more on BP in the near future (hopefully in the success forum! ) :mrgreen: