I know what you’re thinking. Come on Marty, are these late night infomercials for real? Can you really buy and sell houses with no money and no credit? I’m here to tell you that ABSOLUTELY you can! I do it month after month and deal after deal. My primary exit strategy on pre foreclosure short sales is to do a simultaneous closing, which allows me to do the closing with zero money and zero credit. It’s an absolutely outstanding way to close the deals and puts me at the least amount of risk.
Ok, here’s the readers digest version of why and how you can, and you are going to be amazed at how easy it is. All you do is acquire a property from a homeowner facing foreclosure that needs a short sale done on their property. You can either put the property into a Land Trust or your can put an Option on the property. Next, you negotiate the discount with the lender. In parallel, you market for and find your end buyer who wants to buy the property from you (and yes, you can find retail buyers using traditional financing, EVEN FHA BUYERS!!!). Get your approval letter from the bank on the accepted short sale price. Take that paperwork to your title company or attorney. Have your end buyer get their funding in place. On the day of closing, you simply buy the property from the homeowner and sell it to your end buyer the same day. Because you are selling it the same day (it’s called a “double closing” or “simultaneous closing”) your end buyer is funding the transaction. The difference between what you buy the property for from the homeowner and what you sell it for to your end buyer (minus closing costs) is what you get to keep. Your credit score is irrelevant and you don’t need to bring money to the table. And because you’re using a Land Trust or an Option, your end buyer can even use traditional financing because the property has already seasoned. See, I told you it was easy. After you do your first deal like this, you’ll be walking away from the title company with a check for $10,000, $20,000, $30,000 or more with a baffled look on your face because you just did what everybody told you was impossible. J
