I have been thinking about investing in short sales, with idea of buy with cash and resell for a profit.
I have been reading alot out there that this kind of investing is dead. Can anyone shed some light on this.
Is the back to back closing a thing of the past?
Do all accpetance letters contain the anti Flip language?
What if I rehanb and resell after 90 days?
Any help is greatly appreciated.
Thanks You
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Yes, the same day A-B-C transaction is a thing of the past. In fact, some real estate agents are doing jail time for such closings, where the value may have been misrepresented and they may have profited from the transaction.
However, you can buy a short sale and rehab the property and sell it usually after 30 days of holding. Getting a great deal is the trick...margins are in deed thinner these days but still a better return than the S&P this year:)
You will need to sign Arm's Length Affidavits and lender specific addendums...
Usually with a rehab and sell after 90 days you are okay. Many do have "no flip" language and back to back closings are a thing of the past in my opinion. Lenders are looking for fair market value now so many of the houses in good condition are being closed at or close enough to fair market value that you would have little to no profit margin.