OfflineHello.
I will be meeting with a bank that has 2 REO properties. I was expecting to hear that they worked with an REO agent (real estate agent) so I could work with that agent, and place properties under contract and assign to an investor to flip. I know that banks do not work with “or assigns” type of transactions.
Can anyone tell me what to expect and how I can work with a bank with no money or credit to flip these to another investor (as I would be able to do with an REO Agent?
Ter Scott
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Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
The last guy was so nice in his answer, I’ll try to be a little more personable.
Ter
you have several things you may not have thought about. 1) Most of your “hard money lenders” will lend transitional funds for a fee. Or 2) your “private money lender” he/she/them, may consider loaning the funds for a fee also that may be a better rate then the HML
Food for thought!
Regards
Ed
not sure what kind of answer Mike implied, but yes, one way is the HML or private money, but make sure you have these before you go. The banks will not assign. EVen when you work with an assigned agent be careful, because I had an agent misrepresent the property. They showed pics that make a deal look like one would expect in that the property needed some work, but a great deal. We went to the property and it was a total gut! I stopped working with them after that! The agent went out an "took" pictures at least that was her claim, but she had not been there at the time she states, because the house as I said was gutted!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
1. Find out who at the bank you can submit the offer to.
2. Offer in the name of an LLC
3. Find a buyer
4. Sell him the LLC for your fee.
5. Collect your fee at closing.
Do not mention wholesaling, that you have no money etc etc. Present yourself as a knowledgeable professional that closes deals.
Having a list of active cash buyers is essential.
Good luck!
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
The exact strategy Michael explained above is the best way to go about any no money strategy deals with the banks.
Reynold Orozco
Another way around the REO non-assignment restriction is to do a double close. You will either have to use transactional funds or find a title company that will handle a double close.
The last 7 REO's Jill & I have bought REQUIRED that the POF being in our name, whether it was a checking, savings, IRA, account etc. In fact in their contract addendum, it stated that they would not accept any 3rd party POF.
One way to get around that is to set up your own escrow. Take the EMD from your end buyer and place it in the escrow account. Use the escrow account as your POF.
IF you haven't LEARNED HOW to do this, they will laugh at you and you may get a calendar.
The LOSS MITIGATION Dept is where you'll find all the deals and IF you Learned HOW, you will KNOW the ??'s to ask.
Best Wishes in 2015 and beyond
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Gary,
We are seeing that trend here also. Requests for ACTUAL POFs. REOs in Colorado are listed at ARV when they need $50,000 in Rehab! I was doing mainly REOs 2 years ago, this year we only did 2 in the Denver market.
Mike,
You are so right! You don't want to talk to a banker in any way other than in a totally profession manner. You might not even get a calender!
One other note. A lot of REOs (fannie,freddie etc) have 90 day deed restrictions so that does away with the double close strategy. Selling the LLC is a single closing.
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Are good,but you HAVE TO KNOW...HOW
ALL REI strategies Can work, IF you KNOW HOW to USE them and What to say.
The 'cycles' of REI is VERY important and you NEED to recognized them and USE the appropriate strategy.
DO YOUR HOMEWORK AND LEARN!! It takes TIME and you are NOT willing to put the time and sacrifices to LEARN HOW, you won't make it.
POF'S is a MUST now, it doesn't have to be Yours, but you Have to have it.
I can't even get a calendar...what day is it?
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Ter - did you end up meeting with the bank, and if so, how'd it go?
- Tom
Michael:
Is this also the appropriate way to sidestep the restrictive sales addendums that Bank of America and others are currently using on Short Sale and Foreclosure sales? I just made an offer on a HUD foreclosure and received an addendum stating that I would not resell the property in access of 120% of my purchase price for a period extending from acceptance date until 90 days post closing. I refused to accept the addendum and thus lost out on the deal. This was the 4th such Addendum I refused to accept in the last 3 weeks because I refused to give up my right to assign the contract or wholesale the deal pre-close.
Thomas M.