Assignment Contract Proof of Funds

I'd recommend avoiding REO's for assignments, and stick to motivated FSBO's instead. In general a REO contract:

- Is not assignable.

- Does require POF to submit an offer.

- You have to sign their contact and they will not accept any contingencies outside of their standard contract. Even inspection and financing contingencies can be difficult with them.

I've done a number of REO offers and the banks tend to be very firm.

Tom

Can give you that proof of funds. I am not an expert by any means, and am learning myself - but I've learned that Transactional Funding may be what you are looking for. If you go to a site like www.insiderscash.com you can get that Proof of Funds letter your Agent is refering to. Most banks that I know will NOT allow you to assign that contract to your end buyer, so you may need to do a Double Closing and use Transactional Funding to buy the REO, and then turn around and sell it to your end buyer. I have not done this yet, but what I'm told is that your end buyer will need to have their money in an escrow account, showing the Transactional Company the "proof" they have the funds and are buying that property from you. Then the Transactional company will cut the check and buy the REO as your partner, and will get paid from your End buyer, and cut you a check for the difference.

Those that have already done this can probably explain it better, but check out that website and get more info! Hope this helps a little

Renae
The Browley Team

Thanks for the responses guys. I'm looking into the insider cash thing now.

My question is, although FSBOs are bound to naturally be more flexible than banks, won't they also most likely want a proof of funds?
Also, the thing is that I have a wealthy relative who I was wondering if it would be possible to somehow work him with to have the contract go through so I can just assign it. How do partners work in terms of proof of funds and contracts?

Also, @TDS how do you go about working with REOs. Do you do standard deals where you buy rent or buy and resell on your own, or have you been able to do double closings with banks?

Hi

Here's another free site to get proof of funds. Www.coastal-funding.com

You can get proof of funds letters for any offer you are going to make...If you have a Wealthy Relative...cut them in on the deal and just buy it cash! Make some money off of it and now you have someone who can see how this works and can help you down the road...or ask them to co-sign if you don't think they will buy it outright.

Hi Luis - for me, I buy, rehab and rent REO's. I haven't done a double close although many of this site have so that's an option.

The banks I have worked with are firm in their contracts - lots of rules, cashier's check required for deposit, etc, but I work with them because you can get some really good deals!

Hope that helps,

- Tom

PM me for more info...
Barbara

Please fill out your profile info -let us know a little about you and where you are.

if you have a partner with funds-sign a joint venture contract and split the profits anyway you agree to.

REO - buy the property and add/remove your or partners name from the contract during process, but have a second contract for your pay with buyer/partner.

Buy under LLC and sell the LLC

Thank you all so much for your responses and help, it really means a lot to me. I sincerely appreciate it.

The wealthy relative I have, actually does not live in the United States but in Venezuela and is my grandfather. He is pretty old and semi-retired so I highly doubt he will be too willing to spend funds, although I might be able to convince him if I'm absolutely confident about the deal and the numbers, but preferably I would rather not risk anyone else's money until I have a bit more experience under my wing, which is why I think double closings and assignable contracts are so great.

As to what I should focus on, should I focus less on banks and REOs since they will make it more difficult to do assignable contracts? The thing that attracted me about banks is because if I can make a good relationship with the asset managers, then that's a constant stream of deals to work with, and its a win-win-win because I want to get a lot of deals done, the bank gets rid of a lot of properties and investors get great deals, but I'm not sure if this is possible. Which leads me back to the proof of funds question since banks like cash.

How does transactional funding work and what are the downsides to using it?
How do you legally structure a deal with partners? Do you need their signatures as well for doing assignments or double closings in partnerships or joint ventures?

Once again thanks so much to everyone for all their help and support. It means a great deal to me.