You must either be the “listing agent” in the deal, or have explained the situation to the listing agent, and she must be informed and understanding of the process. We will enter into a contract to purchase the short sale property, giving us a controlling interest.  Since we are contracted to purchase the property, we will do our own negotiations with the lender on behalf of the owner of record.  This frees up you, the Realtor, to do what you do best… find buyers and/or list other properties.  

At the same time, you will re-list the property on our behalf and begin seeking a third party purchaser to buy the property from us after we complete negotiations and purchase the property from the owner of record.  Upon a successful negotiation, we will purchase the property from the owner of record using our own funds, and immediately resell and deliver the property to the “end buyer” in a unrelated and separate closing, with a clear title free of all encumbering liens.

Our title company must facilitate each closing. There is and can be no exceptions. Our title company has the expertise in closing short sale deals and will ensure a smooth and stress free closing transaction. We will pay a 4% commission to the listing agent when we purchase the property from the owner of record, and another 3% to the agent who finds the “end buyer”, who purchases the property from us. 

Since we will not close on the property until successful negotiations have been completed and a third-party purchaser has been found, we will not pay for utilities to be turned on for inspections for any reason, nor will we do any repairs to the property.  All properties are being bought and sold “as-is”.  

**The listing Realtor is responsible for attending the “BPO” on behalf of the parties involved.  

As our Realtor representing our company, please understand and make yourself familiar with our process in selling our “short sale” negotiated homes.  We give our Realtors an opportunity to make an above average commission on a short sale property, without the need to do any negotiations, deal with loss mitigation personnel, or collect the tedious paperwork that accompanies such transactions. 

When you understand our process, it will be much easier to pass this information onto the end buyer or the end buyer’s Realtor, so the end buyer understands the steps and process.  When we enter into escrow with an end buyer, he has to understand that it can take longer than usual for the property to be readied for closing.  The end buyer also has to understand that they have to acquire funds from a lender who does not have stringent “seasoning” requirements.   

However, due to the fact that it is a short sale situation, they commonly get a price-point far below the area average. Our goal is to create a “win-win-win” situation, where the seller, the end buyer, and all related parties are satisfied.  

Our process in selling short sale negotiated property includes two separate closings. The first closing is as follows: 

We will have a complete set of closing costs and private lender fees as the buyer of the property from the seller in default. We close using our own funds, not the funds from the end buyer.  We typically pay for all closing costs, private loan fees, and all other fees and many times other liens encumbering the property to clear the title so that we can offer the subject property for sale to a third party at the second closing.   

The fees we pay may include delinquent utility bills, usually back taxes, liens from the city or county, mechanics liens from water softeners, solar panels and even court fines and judgments to public defender fees. These have to be paid off to clear title for us to offer the property for sale to a third party. In addition, we will pay any Realtor commission that the lender tries to “cut-out” or negotiate to an unacceptable level. 
 

After the first closing is completed, we immediately resell the property to the “end buyer”.  This closing

is totally unrelated to the first, except for the fact that we have turned from “Buyer” to “Seller”.  We make our profit from the difference in the short sale price and the sales price to the end buyer, minus all of the costs and fees we must pay, including those paid to the Realtors.  

As a short sale service provider we will continue to look for ways to cut costs and fees as long as our closings are legal, moral and ethical.  However, due to the many fees and costs, in many cases we make much less than the Realtors involved. 

When we are dealing with a cash buyer, we will explore avenues to assign the short sale deal through an assignment of contract. As long as these types of closings are available to us and approved by our attorneys and title companies, we will be open to creative ideas and entertain alternative ways to close a short sale all cash deal.   

We typically over disclose the process, and are totally transparent to all parties involved, including the seller, end buyer, seller’s lender, buyer’s lender, Realtors, title companies and all other parties. As long as we operate our real estate business legally, with good morals and ethics, title underwriters will approve our deals and get us closed quicker with minimal or no stipulations at all.  

We desire to collaborate with Realtors that are innovative out of the box thinkers that understand our needs and processes in how we do short sale deals.  Likewise, do not ask us to participate with questionable business practices that may be deemed illegal, immoral or unethical. We will not hide, alter, “bend” or shadow parts of our process for the sole sake of “closing the deal”.

Please feel free to contact us with any questions, ideas, or suggestions. We consider ourselves “out of the box” thinkers, and would love to work with you on your short sale transactions!