Assigning REOs

As far as I know lenders will not allow an assignment on an REO period. Some people purchase the REO in its own LLC and then sell the LLC to get around non- assignment clauses. What I do is fund the purchase using transactional funding, Have my buyer under contract and do a double close. I have had to come up with earnest money once the deal was accepted. Maybe a friend, family member, credit card or partner can help with this. Your transactional funding guys will verify that you have a buyer and his funds are in escrow before they do the deal so it is very important for this type of deal that you have a REAL buyer lined up or your earnest money could be at risk. Find a deal that the numbers will work, have a buyer lined up and I will be glad to help. However, when you have gotten that far, you most likely won't need help!

Good luck and do your research!

Michael Mangham
MD Home Acquisitions LLC

Thanks for the advice! I don't have a buyer lined up yet, as I plan to negotiate the deal and make it more appealing to other buyers. Can you also advice whether this is a good idea? Thanks!

You may want to work with FSBOs and owners in pre-foreclosure directly. You can put them under contract with a very small earnest amount and assign them to one of your buyers. You may want to start at the wholesale level and attract fix and flip or buy and hold investors to your buyers list, not the end buyer, unless for sandwich lease/purchase deals.
If you have a list of wholesale buyers and can provide deals that are 65% to 70% of ARV after repairs they will buy!!
Whether you do REOs, Short sales or the pre forclosure market you must first negotiate the deal to get to those percentages to be a productive wholesaler.
I think this is the easiest way to start along with doing sandwich lease/purchase deals. No money down, low risk. REOs can be a pain with alot of competition for now anyway. If they release the shadow REO inventory it could become easy again!

Michael Mangham
MD Home Acquisitions LLC

Thanks for the advice. I've had many houses under contract since ordering Dean's books last November. All of them had great amount of equity, but I couldn't find any "firm" buyers. I got discouraged and decided to move on to another method. However, I am willing to take a stab at it again. Thanks!

Its very easy to get buyers. Go to those websites, "I buy homes for cash" "Cash for homes" and you'll get tons of investors calling you. Use google to search for those sites. Once you go to those sites, you can put in the information on the house. Thats a fast way to find your buyers.

Today I found "my Realtor".And I got a list of all the property's in my area.I have a buyer thats approved for 205,000.I have all of his info and was ready to make some offers.But if this is the case,what shall I do?Try to find a FSBO?My buyer is on stand bye,and seems to be in a hurry.I'm a greenhorn and just joined the acadamy and would love all the advice and help I can get.

Thank you,Kimmie

Lenee, check the Forums area on this website at

http://www.deangraziosi.com/forum/32

You will find TONS of helpful info. re. REO's as well as additional acquisition techniques you will use in the future.

Thanks so much John! I will certainly use your advice and keep everyone updated!

Did you loose your earnest money on all of the props you have had Under Contract ? I am curios because it seems to me that finding buyers and then finding Qualified buyers can be very hard to do. Then before you know it the deal falls thru !!! Does this sound about right ?Thanks

Actually, none of the deals I worked involved me putting earnest money down. The reason being was that I gave the seller an escape clause, in the event theyfound their own buyer (btw...which never happened). This allowed me to keep my money and not make an earnest deposit.

find someone who does

The best ways to do this are to partner up with one while having another ready to buy. Try and have several deals so that just in case you offer one and they don't like, you have to try and find another one

Find the deals first and the buyers/investors will come in hordes

If you need help, pm me. I will be happy to partner up with you on some deals and get your feet wet. Don't give up you are to close. Take care-

I am attempting to PM you, but it will not go through...

I too am a newbie and have a simple question. I am trying to get started by bird dogging. I have no money to invest yet and hopefully this will help. I have had my eye on a particular house that just recently went through foreclosure. It has went back to the bank and has not been listed with a realtor yet. I would like to get a jump on it beforehand. How do i go about getting in to do repair estimates when the bank is in another state before it gets listed? I have done all due diligence on this home except for repair estimates... looks like a great deal!! Dont want this one to slip by.
Does anyone have any advice?

During your convo let them know if they have any other properties that need to be taken off the books pronto, you have access to a bunch other cash buyers. If the bank does not allow assignments, set up a finders fee agreement with a buyer(s).

You might want to start here as I doubt any of the regulars would outright screw you over with the thought of being exposed so high and embarrassing.

Hope it helps

Hi Lenee...

Great topic...I posted something similar a few weeks ago but wasn't getting much response so I'm glad you posted this!

I have 2 REO's that I'm currently pursuing so finding this great! Thanks for sharing!!!

Ted

Lenee,

I got your pm. I will be contacting you. Feel free to contact me as well If anything should cross your mind....

Now that it has been determined that one can assign a REO... Is anyone that has done so, willing to share how their transaction went??? Thanks!

All you have to do is get a contract on the property you make an offer on from a lender that is assignable. Good luck and let us all know what lender will allow an assignable contract on a REO!

Michael Mangham
MD Home Acquisitions LLC

Thanks! I am sending the contract today and I will definately let you know how it goes!

I did a lot of deals with commercial under Land agreement, trying to get this house its a fix-up I think I can get it 100% finance from the bank just trying to find out who owns it, I'm hoping its FSBO so I can deal directly with the owner, I know there is equity in it and can use it to finance other deals...So I will try to get it on contract but like Mark said try for the deal where the home is in big distress...