Flipping short sales is being sold as an investor gold mine, but is it as easy as it sounds? Let’s discuss.
Purchasing a Short Sale to Flip
Here are three things that you need to be prepared for if you plan to purchase a short sale as a flip:
1. No Repairs Paid by the Short Sale Lender.
When purchasing a short sale, the short sale lender likes to sell the property as-is.
2. Short Sale Addenda May Restrict Resale.
If an investor buyer purchases a flip, he (or she) may be required to hold the property for 90 days or more—thus impacting the investor buyer’s financial bottom line.
3. Terms Not Ratified by Lender.
Investor buyers of short sales need to be prepared for the long wait time and the “no” that may come at the end of that long wait.
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