There is so much attention on back-to-back closings . . . can you, should you, how do you….and on and on. The attention is merited . . . there are a lot of things to line up correctly and be careful about; but don’t forget . . . there is more than one way out of a Short Sale.
On our last Short Sale Success Webinar, I interviewed a pair of students who who had just completed a nice transactino that involved a Short Sale and made more than $37,000! But these guys were not able to do back-to-back closings. Instead of buying the property and re-selling it immediately, these investors needed more time to pull everything together. So they simply borrowed the money to purchase the property, held it for about 30 days and then resold it.
Now, personally, I don’t really want to be a landlord and I already have a house for my family and me to live in, so I’m not necessarily looking to hold onto properties. Just don’t forget that just because you can’t figure out the back-to-back closing doesn’t mean there aren’t other options.
I understand why back-to-back closings are so popular. There’s very little risk of getting stuck with a house and the financing via “dough-for-a-day” lenders is so cheap because they already know there’s an end buyer when they lend you the money for the A to B purchase. A Back to back closing is great when you can do it; however, they are becoming increasingly difficult and are under intense scrutiny from title insurance companies, regulators, state attorneys, and other investigative government agencies. Doesn’t mean you can’t figure it out just don’t forget . . . there is more than one way out of a short sale.
We’ll be studying several ways out of a short sale, including back-to-back closings at my next Breakthrough Live Training Event “California Gone Crazy: The Short Sale Breakthrough Event”.
Ben
