I`ve been trying to find out information on how best to "creatively" approach a banked-owned listed property here in BC, but there seems to be precious little information that I can find. Any ideas will be greatly appreciated. Here is a hypothetical example:
[list type=decimal][*]Property ARV is $460,000; needs minor repairs totaling $10,000 max[*]Bank lists the property at $400,000.[*]Buyer A submits unconditional offer for $380,000 which is accepted and court date is setBuyer B shows up in court and offers $390,000. The judge awards court ordered sale to buyer B throwing out Buyer A`s offer in the processNext day, buyer B sells the property to Mr & Mrs C for $410,000 who are owner-occupants and are very happy about the good dealBuyer B pockets a profit of $20,000 less closing costs[/list type=decimal]My question is: How did buyer B manage to engineer this transaction? My understanding is that she will not have been allowed to assign the contract to a third party. At least banks don`t like to have that as a condition in the contract. Closing the court ordered sale and in turn selling it to buyer C on a separate contract should also attract Property Transfer Tax. This should have eaten a sizable chunk of her profit. So I am still at a loss as to how investors perform this type of transaction in BC. Any suggestions or experiences?
[list type=decimal][*]Property ARV is $460,000; needs minor repairs totaling $10,000 max[*]Bank lists the property at $400,000.[*]Buyer A submits unconditional offer for $380,000 which is accepted and court date is setBuyer B shows up in court and offers $390,000. The judge awards court ordered sale to buyer B throwing out Buyer A`s offer in the processNext day, buyer B sells the property to Mr & Mrs C for $410,000 who are owner-occupants and are very happy about the good dealBuyer B pockets a profit of $20,000 less closing costs[/list type=decimal]My question is: How did buyer B manage to engineer this transaction? My understanding is that she will not have been allowed to assign the contract to a third party. At least banks don`t like to have that as a condition in the contract. Closing the court ordered sale and in turn selling it to buyer C on a separate contract should also attract Property Transfer Tax. This should have eaten a sizable chunk of her profit. So I am still at a loss as to how investors perform this type of transaction in BC. Any suggestions or experiences?
