Forget about this deal. You are never going to find an investor to buy it. The major problem is it’s LISTED too close to retail! When you do a short sale you have to get an OWNER OCCUPANT to buy it and have them pay FULL MARKET VALUE to make any money. Let’s assume you could get the bank to accept your offer of $100K with no realtors involved!The realtor is demanding proof of funds, not the bank. You place an ad or stick some signs in the ground to find a buyer with no money down and you pay all the closing costs. You sell as is. Do you think you could find a buyer whose renting now with no money but only fair credit to buy this house? I’ve done many of them. What is your return? Cash out of pocket = $300 maybe. 20K return. My calculator doesn’t go the high! It happens every day.
I’m working on my first deal and I need a little bit of advice. I found a newer home, built in 1999, being sold on a short sale. They’re asking for $100,000. It is worth about $130,000 based on comps in the area. I have no credit to buy the home myself, but I would like to flip it by making my contract assignable. The bank requires a letter of loan approval (which I can’t get). If I offer all cash do you think that I would be able to find an investor to sell my contract to that would be able to work with those terms? And what about a closing within 2 weeks? Just to make the contract stronger, as it’s really hot - just listed in the MLS 2 days ago, and she’s already showed it several times. Bytheway, the home is in excellent condition and needs no work at all.