I have a way around funds-proof requirements - BUT...

[Chuck Prime]

For wholesalers, here's a way around funds proof requirements on those shortsale/REO deals - IF you know your buyer.

Use a standard Addendum and add him as co-buyer on your original purchase contract. Now you're both buying the place, and the banks can use his funds proof and such instead of yours. After closing, you both go to a notary (best place is your bank or his) where he pays you cash in place of an assignment fee to deed all your interests in the property to him. Bingo. Done.

No hard-money hassles or expense. No BS. Pretty slick, eh?

Yeah - when you know your buyer. I've done it my last 2 deals. But my buyer for the current shortsale is someone new. He has no assurance that I will in fact deed my interest to him after COE, even though he knows I need the money.

We can't write it into the contract, because it's an after-COE arrangement. We could probably draw up an agteement and file it with the county recorder, but he's kinda "meh" about that. And this current shorsale is a condo, for which ALL my buyers would be new.

Anyone got any suggestions? I need a bright idea to fix my bright idea.

Thanks in advance!

[Cheryl C.]

Yes, I understand that you will both take title. In this juridiction, prior liens will attach the minute title goes into your name. In other words, when you deed your interests over to him the title might be encumbered by prior judgments of record against you. Jurisdictions have differing law with respect to priority, etc.

I have bought properties for relatives in the manner you are contemplating (I did it in order to give my relatives time to sell a property or obtain financing). As an investor I would never want to take title without title insurance, which is what you are asking this guy to do - nevermind the issue of your possible breach.