OfflineI talked to a mortgage officer at a local bank yesterday afternoon. She informed me I needed to talk to an escrow officer at a title company to get information on laws in the state regarding legal means of transfer of ownership. When I spoke with the person at the title company, she informed me that for bank REO's I cannot assign, or do a double close because legally I am required to hold the property for 90 days before I can sell it to someone else. I do not remember this part from class, so I am a little sad as this was going to be my tactic for wholesales. Is the true everywhere? or just in Washington State.
A little bummed. Thought this was a great tactic, and now feeling a little deflated. Any help would be greatly appreciated
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Says to use a land trust.
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Thank you for the links Carol.
Hi Elizabeth,
90 holds are considered Deed Restrictions most of all banks are putting onto the buyers, so doing double closings is out. You can do the Land Trust strategy but it will take you time and a lawyer to put it together. Another option you have is the LLC Method. Put the property under contract in your LLC name, then once you have the property locked up, take the deal to your investor and let them know you want them to come into your LLC as a managing member, bring their funds to buy the deal, now you and they are owners of your LLC. You guys buy the house under the LLC, once title is recorded in the LLC'S Name have your investor buy you out of your LLC. The property is still in the name of the LLC and you are out and no harm to the deed restriction. Make sure you use a LLC that has nothing attached to it or create a new one for every deal like this.
Hope this helps.
Happy Investing,
Shah Ali
Hey buddy, I havn't done this yet but will I'm sure soon. I thought you could just sell the LLC while you have it under contract, can you do that too? Or do you have to add the buyer to your LLC. Thanks.
Tony
Go faster do more! GFDM!