Presenting Offers on REOs - Property Listing Agent vs. Buyer's Agent

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...A transactional lender that offers a proof of funds letter can be found at Coastal Funding.

The link is as follows:
http://www.coastal-funding.com/

Be sure to read about the terms and conditions regarding this type of funding. Good luck. Believe and Achieve! - Joe

No money.
No credit.
No problem..right?
With all the above:

How do I get a contract on a REO?
Make an offer...ok what goes with that offer?
Funds letter? What else?
Do I send it directly to the Realtor handling the REO? or should I try to contact the asset manager and bypass the realtor?
If I even get the contract what then?
Will they allow me to assign?
Will I have to find a buyer fast?
Will they allow me to find a buyer other than myself?
If not then what?
Hard money lender? Ok. Will they finace 100%? I dought it.
Where do I make up the other 30 to 40% I will need to purchase the property?
The houses in my area are 200,000+.
From what I hear REO's dont allow the contigancies (easy-outs) that regular contacts offer. They wont allow it.

I would like to get 1 deal under my belt so I can afford to pay for coaching.
As for now DG forums is all I have.
Any help would be greatly appriciated.

I just want to make sure I'm on the right track. I have a good real estate agent to find me distressed REOs. Since you need proof of funds when working with a bank out front, this agent even got me a company that provides the money for 24 hours only after the buyer has signed the contract to buy. I'm putting the property under contract with the seller for 50k and with the buyer for 65k. So I am looking to make about 14k after I pay the lending company its 2.5%. Am I missing anything? and does the cash buyer have to know at what price I originally bought the property for? I don't think it's any of his business. Let me get some feedback on this I would really appreciate it! Thanks!

Hi Joe, It's funny, I'm having the same problem here. Submitted on a REO friday and my realtor swears she would have it in "Monday mourning 8am straight up" I think she forgot my wife work at that perticular financial institution. So,maybe going through the listing agent wouldn't be a bad idea.Good luck hope it works out for you

...Good luck on your first double closing. The end buyer will not find out what you paid unless they go back and review the county records after filing. Most counties will record the purchase price as part of the recording process. Banks often have the title companies report on chain of title. As long as your end buyer is happy with the deal, they should not care what you paid for it. Good luck with your transaction. Believe and Achieve! - Joe

.....I found I usually get a faster response with the Listing Agent. However sommetimes an agent may be eager to look like a super hero to the bank by shopping the offer for the "best and highest". That's why I will give no longer than 48 hours for an acceptance. Good luck on your potential deal. Believe and Achieve! - Joe

I am not a newbee per say, but more of a reborn again birddog. I had some sucess in the Atlanta Ga area in the mid-90's to early 2000's but I had a list of five go-to buyers who would always snapp up my preforclosure properties. I now live in Raleigh NC and trying to get back into the game. I am having a tough time putting together a buyer's list and I thought there was a blog about how to do this. I can find the properties, be it REO's, FSBO, Prefourclosures but contracting the properties is one and assigning/selling them is something else. How do I go about finding the cash rich/time poor investigators mentioned in Dean's commercial.

buffs28,

It has been my experence that REO's owned by larger banks will not allow you to assign their properties. The usually wan to deal directly with the buyer and will require some kind of proof of funds or a pre-quail letter. What I have done in the past and working on doing now is to team up with a buyer who has the cash/funding. I find the property, make the offer, and add the buyer to the contract when both agree on the property and contract price. We then partner up to rehab/sale or flip the property. As far as pre-forclosures or FSBO's you can lock them down with with a contract and assign your contract to a buyer without taking title to the property. You will be the middle man putting a buyer with a seller.(ie: Property after repair value (ARV) = 100,000; your contract price 40,000; you assign the contract to your buyer for 50,000 (50 cents on the dollar) Your assignment fee at closing is 10,000)

Quick question? So, a agent that list a house that my buyers want, How can i make this happen?

I think it is very smart to use contractor not inspector. First it will be free and second it will give you an estimate of the repair cost. I'm a realtor helping my client to make money by "Assignment of Contract". You just keep putting offers on REOs, short sales and probates and see who is willing to go for it. Some wants to take a chance and think you'll find a buyer fast enough, some doesn't want to go for it. You keep moving on.

Going to the listing agent doesn't help. It is a good idea to put offers on foreclosures that has been in the market for a while, you'll have a better chance. I'm talking about Los Angeles, CA. Here the banks are very picky.

Remember that you can use Transactional Funding to supply a "Proof of Funds Letter." Most of the transactional funding companies will supply this letter free of charge if you visit their websites and request one. Some require you use a business, i.e., LLC or Corp. some will not. Some of the banks are "wise" to this method as they know you are going to do a double closing as a result. But keep going and making offers with the proof of funds letters and you will eventually get some offers accepted. Then you can do a double closing using either an amenable title company or a real estate attorney and sell your "deal" to an investor.

I'm new, don't know anything, credit is bad, no money
what do i need to do to start and make this work for me.

Is it possible to purchase the reo in an as a LLc with the name on the contact as the property for Example: 123 oak st, LLC. Then just add your buyer as a member of the LLC to allow them to take ownership then purchase the property?

HI, I just filled out the form on the Academy page.
I may just call them. But I hear its very good!
I was wondering if there subscription offers to the Academy?
Or is it a one time fee?
I have an idea what to do. 85% I learned from Deans Book
And thru the years of just studying stuff but not applying it
I need someone to kick my butt into gear. Just make excuses
not to get started. This is really a challenge for me? I dont know
why either? Its crazy!
Roland

hi this is my first post asking a question on the DG web site and hope its not a dumb question. I have learned that forclosures are great because of the low offers that can be made. I found a couple of forclosures with great potential in my area of choice. one may need a new kitchen, carpeting, appliances, paint, and some yard work while the other looks ready to have someone move in. the one that needs work has been on the site for over 60 days and the other property for a lil over thirty days. im sure that low offers can be made because they are REOs but to whom? these two are on the same agents web site and i was wondering that since they are forclosures, why are they on the web site along with homes that are not in forclosure. i was also wondering that if i made an offer, do i try and find the banks that are in control of them or do i make them to the agent? im really interested in wholesale for some quick cash but dont know what the next step is. would appreicate any advice.

Newbie you guys are the bomb, I am loving this Thanks so much for the comments, I have been doing a little research on my own and have actually gotten a lot of inquiries about what I want to do to build my network and I did not even know how but it is really worth the effort to see how you have done this Thanks so much

Work4No1,

We found your information to be very insightful...

Thanks

...Glad you found the information to be useful. Good luck with real estate investing. Believe and Achieve! - Joe

Welcome and good luck with real estate investing. A power team network is key. Work on finding good members for your power team and have depth in eveyr postion of yoru team. Get members on your team before you need them so you will be ready to handle any challenges that may occur as you do deals. Believe and Achieve! - Joe

...You would make your offers on REOs through your real estate agent. You do not need to find out what bank owns the properties. The real estate agent presents your offer to the bank. Any proeprty that is listed for sale with a rel estate agent is usually always in the MLS system./ Realtors can provide lsitis of properties for sale. Properties can include bank owned REOs, short sales, estate sales and regular homes for sale, etc. You can offer whatever you want on a property. Always have an exit startegy in mind as to what you will do with the property if you get it at the price you want. Good luck. Believe and Achieve! - Joe

...Dean's Success Acadmey is a great option. I believe they offer a few different packages. It would be worth the call to see if it is a right fit for you. I know the coaches are great and very knowledgable. I have met them at various events including Dean's Gain the Edge annual event. They have helped a great number of people succeed with real estate investing. Good luck. Believe and Achieve! - Joe

.....You should consult your attorney as the best way to do this. I know of some investors that formed an LLC made an offer that got accepted and then sold the LLC to the end buyer. You will want to check with an attorney for the best way and options of doing this. A double close could be another option to consider. Good luck and AI hope this helps. Believe and Achieve! - Joe

...To get started try some of the fast cash startegies such as bird-dogging for other investors, locking up deals and doing assignments or even a double close. The key is build a great buyers list and find what buyers want. The better the edeal you lock up, the more options you will have of what you can do with the deal. Believe and Achieve! - Joe

thank you so much for the info. it really helps me to know where to head next. ill be checking in more often and leaving more posts if i need too. thanx again

im having an issue with craigslist. im trying to list a ghost property but when im almost done with the post and asks for my phone number, it says my number is invalid or something. it wont let me post my ghost ad. i think it cuz i have cricket any ideas? dont wanna miss out on using craigslist

...To post some ads on Craigslist it requires that they verify a phone number. They cal land provide a code that you haveto enter. Retry the ad 24 hours later and provide a phone number. Either a cell number or home number should work. Good luck. Believe and Achieve! - Joe

thanx a million i appreiciate it!! ^_^

I know it varies, but about how long does a bank keep their foreclosures on the MLS, until' taking the property to auctioning? Thank you.