help in wholesale a listed bank own property.

Hey check out this site for the POF: http://www.tempofunding.com/request-proof-of-funds/

Yeah, You should definitely Wholesale it! I can always help partner by finding a buyer.

Get the offer in first and get it accepted! ASAP! GOOD LUCK!

I HAVE A PROPERTY RITE NEXT DOOR TO ME SAME PREDICAMENT, 33,000, I HAVE MONEY BUT CREDIT IS AN ISSUE

Hurst,

The fact that the price dropped only means the bank is getting more and more desperate to sell it, which is a good thing for you! But it doesn't necessarily mean 49k is a good price.

First you need to know which type of buyers you want to target, cashflow investors, or speculator investors. Cashflow investors only care if the property can cashflow, and what their return on investment will be. Speculator investors (flippers) care about if they can buy it, fix it, and quickly sell it for a nice profit, usually around 15-25k profit. To find out which type of buyers are in your area, the best way is to build your buyers list.

Once you've figured out who you want to wholesale it to, you need to figure out if it's a good deal for that particular investor. To figure out if it's a good price, you need to know what the ARV is, and how much work needs to be done.

Here are two different examples:

Speculator (flipper)
If the purchase price is 49k, the ARV is 80k, and it needs 10k work put into it, then it is not a good deal for a flipper. Why? Because it costs money for the flipper to sell the property (about 15%).

6% - Realtor Commissions
3% - Closing Costs
3% - Negotiation Wiggle Room
3% - If the end buyer wants the flipper to pay their closing costs

So when the deal is all said and done, the flipper will walk away with a $3,620 profit.

How did I figure that number out? 80k minus 15% expenses equals 68k, which is the NET amount they will get for selling the property. So if the flipper bought it at $54,000 (assuming you locked it up at $49,000 and wanted to make $5,000 from wholesaling it) with 3% ($1,620) closing costs and did a $10,000 rehab, that would mean they put a total of $65,620 into purchasing the property.

$68,000 minus $65,620 equals a $3,620 profit.

But this deal would never happen because the flipper would not buy the deal from you with these numbers. That's why you would need to negotiate a lower purchase price from the bank, so you could in-turn make the same amount of money and also give your investor a lower purchase price to make the deal more attractive to them.

Cashflow investor
On the other hand, if the investors all-in costs were $65,620 (like the example above) and they rented out the property for $1,600/mo and had $700/mo expenses. That would give them a $900/mo monthly cashflow.

To figure out their return on investment, you would need to figure out their annual cashflow by multiplying their monthly cashflow by 12. In this scenario, $900 times 12 would equal $10,800.

Divide their annual cashflow by their all-in costs and that would give you their return on investment. $10,800 divided by $65,620 equals roughly 0.165 which is another way to say 16.5%

Most investors would LOVE a 16.5% return on investment (aka ROI, or cap rate). Most will even be happy to get 10%.

To summarize, it might be a good deal for a cashflow investor, but not necessarily a good deal for a flipper. Another thing you need to take into consideration is that when wholesaling bank properties, you need to do a double close instead of an assignment. Banks will usually not accept any offer with "and/or assigns" after your name, so you are forced to do a double close. Remember that in a double close, you will personally have to pay two different sets of closing costs, so you should always try to make at least $10,000 when doing a double close to cover any expenses out of your own pocket.

For more information about the difference between assignments and double closes, check out my guide for beginners. The link is in my signature.

Hope that helps! Let us know how it goes!

Another thing I forgot to note is:

There are many free proof of funds services you can use when you are getting started. A few I can think of are Coastal Funding (not sure if they are around anymore) and Insiders Cash. Google them.

Just a few thoughts I had as I read the thread....

Of course you can draw a line through the paragraph in the contract on the state form that reads “This contract may not be assigned unless agreed upon by all parties in writing.", and hope the asset manager initial off on it, lol Good Luck with that one. Who knows it may work. I have not had luck with that myself lol.

Several ways comes to mind of how to wholesale a listed Reo, I'll share two here.

Assuming you have all your other contingencies in place i.e. Inspections. One way is, after the contract is ratified tell the list agent you want to add a buyer (what bank do you NOT know that wouldn't love 2 people not 1 personally liable?) the buyer you add has the cash to close.

Another way is to write the offer up in the name of a Land Trust Agreement. Sell your intrest in the Land Trust and agree to resign as Trustee at closing.

You would create the Land Trust when you have the contract ratified. If you can't find an end buyer by the time your inspection contingency expire, simply do a release agreement based on unsatisfactory inspection and you will get your EMD back.

If you need help or some more ideas let me know if I can assist you.

Wish you the best in 2013 !!!