You can buy cheap, foreclosed homes, fix them up and rent them out for cash flow to resell when the market values increase again. You can even find a great deal on your own dream home.
Some savvy investors are purchasing pre-foreclosed homes with short sales and then selling them to home buyers for a profit. Often, these deals are done in what is known as a back to back closing, where the buy and sell take place at the same closing table with one title company.
If you are an investor who is working with REO properties, pre-foreclosures and short sales, you have no doubt noticed how much more difficult the double closing is. In the past, simultaneous closings were easy; however, with the mortgage melt-down comes the credit crunch, mortgage fraud and tighter restrictions with lenders and title companies.
A back-to-back closing is an option that works for closing short sale deals. Back to back closings take a short sale deal and turn it into two separate transactions. The first transaction is the homeowner facing foreclosure selling to the investor with a short sale. The second transaction is the real estate investor selling the property to the end buyer.
If you are a real estate investor who is considering using a back-to-back closing to buy and resell a property purchased on a short sale you need to have a title company who is capable of completing this type of transaction. Not all title companies are even willing to do this. There are laws to follow and guidelines to meet in order to do this legally.
Jodi Funke is a transactional lender with Cash for Short Sales.com, a company who specializes in funding the buy for the short sale. They have a nationwide team of professionals, attorneys and title companies who can close back-to-back transactions in every state across the nation. Learn more at http://www.cashforshortsales.com
