In today’s real estate market, trying to flip short sales can be problematic.

First, the seller’s lender must approve the contract of sale, which includes approving the buyer. If the lender smells a flip, the contract will not go through.

Second, the end-buyer’s lender likewise will not allow it. The new lender requires a “seasoned” title. In other words, the property deed must already be in the investor’s name and recorded at the County land records for a period of time before the lender will loan the money.

If the investor has not yet gone to settlement with the seller, how can he satisfy this requirement? A land trust may be the solution. (more…)