Can This Work?

Yes, I have. I belong to the mentoring program and it is great stuff. You just need to decide how badly you want to go forward and are you willing to put in the effort.
Best of luck whatever you decide.

Sounds exciting!

Is her selling/moving from HER house contingent upn you getting the house she wants to move TO? I guess if that were the case, you might want to wait 'til you know for sure that you'll be getting it.
You could get hers under contract and she could rent or lease/option the other house until hers sells. Then you wouldn't be in a pickle with a house payment. (btw, what type of financing will you be using?)

Just throwing out some thoughts.
Fun, isn't it? Like a brain teaser. lol

Rina

Run it by the coaches of course, too. Let us know what they say.

Yes, I've already talked to my coach, but that was before I found out today that it was a short sale and I needed to up my offer a little. I'll be calling them tomorrow, again.

I guess the idea about getting her house under contract right away, whether I get the other house or not, at least gives me the opportunity to make an assignment fee if I can sell it.

She told me she would sell her house for $55,000 even if we didn't get the house I'm bidding on. I guess she would try to find something else, in that case. So, it's not totally contingent on her getting my house. She just knows that this house is what she wants and there aren't very many people that would be willing to "trade" with her. Right now I look like her only real option.

I'm trying to get 100% bank financing, 30 yr. amort. with a 35 month balloon. I don't think I would be in a pickle because I'm sure we could rent it for at least a $75/mo cash flow and have at least $20,000 equity.

This one is a real brain teaser for me! I'm having to really s-t-r-e-t-c-h my brain, but if it works out I'll be doing my first deal since joining DG and make some cash to boot.

Now, let's see if I get the financing approved. We are pretty heavily invested already, so, it might be touch and go. But, if I get the financing approved and don't get the bid on that house, I have a couple of other ones I'm looking at pretty seriously.

Whew!! I'll be glad when I get that first one under my belt!

It sounds like this is how you are treating it so I probably don't have to mention this... but maybe someone else reading will take note.

I can say from experience, do not make any decisions based on the ability to help someone else out who is in a jam or making the good deed justify a move that you wouldn't make 100% of the time over and over.

Helping a friend as a by product of your deal is great, but don't factor that into the equation. When you do, it generally means you are making a bad business decision.

Now, the way I would do is lock both with contingencies with contract to trade under the conditions you are trying to make happen. It might be difficult to get done, but by doing so are you creating a arbirtrage situation which is exactly what you want.

If nothing else, just try a reassign with her property and find her a deal that can also do a reassign on in case the short sale can't be locked up like that or isn't available once her's is sold.

You're right. I am not essentially doing this just to help her. I guess I am trying to see this as the best opportunity to make some quick cash.

You mentioned "contingencies with contract to trade". What exactly is that and why do I need to put it in the offer/contract I make to Wells Fargo on the short sale property? What is an "arbitrage" situation? Once I close on it, shouldn't I be able to do with it what I want and get a land contract from her on it. Also, get a quit claim deed on her property, since it is free and clear?
Like I said, this is a s-t-r-e-t-c-h for me.

Thanks for any input. I will be calling the coaching line tomorrow or as soon as I get my financing approval to see how this can work.