Getting your buyer to pay your escrow

...'double close on the property with transactional funding?' I've been told that you can't ASSIGN Short Sales or REO's with a bank, they just won't do it. So how do YOU do it Carol? Thanks!

Thank you for sharing the insight and the information on putting in offers on Short Sales and Reo properties and getting your escrow covered by your buyer. The more we learn each day, the more options we will have with real estate investing. Good luck on all your fuutre deals. Believe and Achieve! - Joe

Actually you can Assign by using a double close. Basically, the way to do it is by using a double closing and not using the "and /or assigns" on the contract which is what you are referring to, when they imply that they don't do it. I know this because I myself have done double closings for all my all REO's. Basically, no ones that you are doing double closing. The realtor does not know. Only you and your title company know.

Sheri_T wrote:

...'double close on the property with transactional funding?' I've been told that you can't ASSIGN Short Sales or REO's with a bank, they just won't do it. So how do YOU do it Carol? Thanks!

Your not assigning the property. You are actually purchasing the property with private funding (AKA transactional funding) and then re-selling the property to a buyer on the same day. This is known as a Double closing.

With the transactional funding, what kind of percentage do require back?

Carol
Thank you for the informative post and keeping it simple! So clearly you ensure you have enough profit in the deal to pay your real estate agent fee and transactional funding fee right?
Fish

Carol,

I realize each deal is different, but on average, how much are you marking up your property for the double-close (to your end buyer).

$5K or $10K ...what would you say your average mark up is? Do you have a minimum?

Or do you make the final "sale price" to your end buyer is a certain percentage under market value (obviously with you still profiting)---is that your rule of thumb? If so, what is that percentage?

I'm making my first offers on 2 REOs, and trying to be clear on this point. I bookmarked your fabulous post from a few weeks back, and have returned to it for clarity.

Thanks in advance for your insight and experience!
Louisa

Hello Louisa,

I have recently been having a hard time getting my REO offers approved. There is so much investor activity where I live that they are bidding on them faster than I can find them. When I do get one accepted I mark it up at least $7,000. Sometimes more if I get it cheap enough.

Carol how do compensate your agent when you say you have them show the property to your potential buyers? What I mean is, say you found the property not the agent. But of course you still need your agent to show the property.

Reason I ask is I don't think my Realtor would do this for me but I don't want to lose her because she's been investing all her adult life (20+yrs). She holds REI networking group monthly (only one in town) and gave me most all my team members in a couple emails. But I'm finding it's hard to get her to answer an email for a comp. on a property or other questions I might have about seasoning in our area or "can you get me inside an abandon pre-forclosure?". No answer until I ask her if I could bring another new investor to her meeting. She responded right back with a sweet "yes". I can't figure her out. I'm having a hard time connecting with her. Sorry, just not knowing how to get around this.

But if I knew how to "compensate" maybe it would be a good time to bring in a second agent?

As always Carol, your a asset to this site. And I love watching you grow your business.

Happy New Year!
Barbara

Sheri_T wrote:

...'double close on the property with transactional funding?' I've been told that you can't ASSIGN Short Sales or REO's with a bank, they just won't do it. So how do YOU do it Carol? Thanks!

Sheri, in a double close you are not assigning, you are actually closing on the property and then your buyer closes on it the same day.

Barbara,

First thing I would do is find another Realtor to service you. I would keep a good relationship with this one by attending her meeting but I would not use her to make your offers or answer questions etc... I have found that the best Realtors to have on your side for showing properties etc... are Realtors that are rather new in the field. The "seasoned" Realtors are set in their ways as far as REI and don't really adapt well to new Investors.

The New Realtors are eager to learn and are more willing to work with you. One way to find such a Realtor is to post an Add on craigslist or facebook that simply states " I am looking for a Realtor with an open mind willing to make some money in 2010"! or something like that. The newer Realtors will jump on this opportunity. When they simply ask them how long they have been a Realtor etc... Then weed them out until you find one that fits.

Also the Realtor that I use to show my properties is actually my wholesaling partner so we split all of our deals 50%. I do all of the marketing, networking and phone calls and he shows the properties and closes the deals.

That makes GREAT sense. I'm all over that. I've really been struggling with this for some reason (miss placed loyalties) but you just lifted me over that hurdle. Thanks again.

What a fantastic arrangement you have there with you and your Realtor/Partner. [] Outside the box []

It really turned some lights on in this old head of mine. The squeaky wheels are turning again. Awesome!

You mentioned that you do not sign the contract under your name until you have had your realtor take the potential buyers to view the property to make sure they will buy it off your hands. If you have not signed the contract, how does the realtor keep the property for you without the buyers taking it on before you? Does the realtor place the property as "pending"? Can he do that without a contract already signed by you? How can I convince a realtor to be willing to do that also, if possible here in Central California?

Happy New year everyone!!

Thank you Carol for the great advice which you pointed out. The key to this is buyers list like you said. I had to bookmark this post. I learnt another great advice which is keeping the tire kickers around because they might know a buyer (referral fee for them)...I love your tip on using realtors to show properties.

Happy investing!

Great information thank you; which will come in handy now that I have a closing set for Feb 28th for a short sale home.