So the first project is on Vassar. It’s a short sale which is new to me. So far I’ve prepared the short sale package and submitted it to Citimortgage. This was about two months ago. They have a third party who processes their short sales, National Quick Sales. They told me a realtor has to be on the transaction so I had to find one willing to work with me. I hired and fired one already (more on that later). I then contacted an old acquaintance who left the company I work for to become a realtor. She said she’ll look over the transaction, call the bank, and then let me know where we have to go from here. I really don’t want her to do too much until I know what she’ll charge me. I’m open to a flat fee arrangement, but certainly not commission. We’ll see.
The greatest hurdle for any aspiring rehabber is finding money. Many work with hard money lenders (HML) or through conventional lenders, but the crown jewel is having a private lender since they can move faster and often offer better rates. I’ve had the good fortune of finding a relative as a private lender, or as I like to call them, a funding partner (has a warmer tone to it). This arrangement however is a little unique. The funding partner has neither cash nor credit, but she has a free and clear property. Last year I was added to the deed so that I could borrow against the equity in my own name. I am currently awaiting the bank disclosures for the loan. This is how I’ll finance the Vassar short sale. I just hope the loan closes before the short sale does. Otherwise I’ll have to make short term financing arrangements.
Future post topics:
– Butt-dialing realtor
– Rehabbing philosophy