Hello Fellow Investors,

The rage these days is everyone is trying to figure out a way to Flip Short-Sales and Reo’s. Currently in my market in North Jersey there are great deals to be had if you know how to go about doing them.

First off, ignore the Lawyers or Realtors that say you ” Can Not” do something. What they really mean is that they just don’t know how, so in their mind it can’t be done.
Saying that, the easiest way to Flip a Short-Sale or REO is to do a same day close. Meaning you close a deal from the Seller (A ) to yourself ( B) and then from yourself ( B) to your end buyer ( C ). This is what would be called the normal Same Day or Double Close, A-B, B- C

Now this of course requires that you have an end buyer lined up to close with, and also that you have the correct clauses stating that if the first deal doesn’t go through, the B-C transaction does not take place and the funds are not released. This is a very nice way also, because that also makes it risk free.

The obstacles you face are making sure you have an end buyer lined up. Making sure you get the property at a good price to sell it to either an end investor or Retail Buyer. If you are going for the Retail Buyers than you can be more flexible on your price and still offer the Retail buyer a house below the current market value.

Another obstacle you will face is that if an end Buyer has a FHA loan this can not be done as easily. Title seasoning comes into play and is usually around 90 days. So to make your life easier stay away from any buyer that comes with an FHA loan.

Most deals fall through because all parties are not aware a flip is taking place. If you are very transparent in your contracts and upfront of your intentions with the bank and also your end buyer and their lenders this will work. The main reason deals don’t happen is because C’s lender wants to know why their buying from B which is you instead of directly from A.. Making sure they know why before any questions can arise is the key.

If you would like any questions answered or things further explained please contact me.

Take Care,
Jarred