Tax Credit Extension Ideal for Inverse Purchase?
The Tax Credit Extension is set to be signed off by the President. It just sailed through the Senate’s with overwhelming approval as expected.
What does this mean for real estate investors?
The tax credit affects both first time buyers and repeat buyers (in slightly modified ways). So let’s look at what type of deals these buyers are usually eligible in today’s market.
1. REO’s Bank owned properties. These types of deals are typically not for first time buyers. The condition of these properties is often too bad. They are sometimes listed with good discounts. Rehabbers and cash buyers are snapping them up. Agents with retail buyers sometimes whine about how their buyers don’t have a chance because the market is too hot
2. Short Sales. Short sales can work for these buyers IF they are pre-negotiated with a cash offer. So the end buyer would buy them from the cash investor at close to fair market price. This can work, but you have to do it correctly in terms of disclosures etc. The Home Seller Assist Platinum membership supports this type of transaction with great tools.
3. Inverse Purchase Deals. The Inverse Purchase system is designed to facilitate flip transactions to retail buyers. So this system is ideal for this target group of buyers. You can put together the transaction with first time buyers who get the tax credit. They could even have an agent involved in the transaction as well.
Here are some of the limitations: You cannot use the Inverse Purchase system for bank owned properties or short sales. That’s all! Any other transaction will work with this. Ideally, you find a motivated buyer who does not have the property listed. The Inverse Purchase system will allow you to create win-win solutions at a much higher net price to the seller. So they will be easy to work with and happy you found them.
You have full access to the Inverse Purchase system in the new “HSA Club” membership level at a nominal fee. Click here to get started!

















