OfflineHello
I had a question about the 25:1 ratio
I read a long time ago and sadly cannot find the post no longer. This is in regard to putting in offers with REOs with the bank.
I find deals with REOS that i think will be great deals..most are as most know 50% if not more below the market value on properties.
I am confused on the process to use these as flippable properites as the bank wants me the buyer to pay for the property up front.
I am aware of double closing on properties but i want to know for sure how the escrow works. I read in a post long ago that again i can no longer find that a guy would write 25 checks to each offer for 1000 dollars and he stated the bank will not cash these checks unless you the buyer accepted the offer.
I have the money to pay 1000 dollar escrow but i do not have 25,000 to write for each offer.
Is it true that the bank will ONLY cash those checks if you the person making the offer accept the agrement of buying the house, or do they cash the check before considering the offer?
I am asking because i want to put in lets say 10 or 15 offers write out 10 or 15 checks and not have the fear of all these checks being cashed unless i ACCEPT the banks offer..
any help on this would be great
Thank you
Hi David:
yes, I remember that posting as well. In my experiences, it can go both ways. I've had the listing office for the bank just hold my check, and I've also had the listing office CASH my check. In cases where the office CASHED my check, and then I pulled out of the deal, that office re-issued me a new check from their own checking account, so please be careful! You could get in a whole lot of trouble if they cashed your checks! This is the listing office CASHING my checks, not an escrow company. Why they did this, I don't know, but I do know they cashed it in anticipation as part of their commission! Aye, yai yai!
Good luck!
About the 25:1. This is something Matt Larson uses very successfully. Check out his posts, he is cbrpower.
Good luck
and give that to your agent; you tell her/him that you will send in the original when your offer gets accepted.
Learning and progressing every day,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Hey thank you for that comment, i have read that before about people suggesting that approach.. Have you been able to get away with doing that.. And what kind of negative feed back did you get back from your agent when you first tried it and how did you talk him into doing that.
I like that idea but never heard of some one successfully doing it. Thank you for your feed back, im really liking that idea
David
last evening...
my agent submitted my offer for me, out of state, with a copy of my check for the EM, and a proof of funds (copy of summary page only of my bank statement).
Once you work with your agent on a few deals, they know you are good for it. The first time I worked with her, I missed out on a deal, because I had to mail the check ;(
Val
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I know for sure an agent I work with would not take a copy, but I also know she would not cash it unless accepted.
I did an assignment deal with REMAX and I didn't have to give any check, just had in the contract, had like a day or two to pay the EM. I agree with Jenny, I would be too nervous to trust putting too many out there, until you get more savvy at this. The bank may take action on a bounced check
So maybe just do a couple deals first, and maybe ask if you can offer $500 instead.
But do be careful, it only takes one person to cash it before hand and leave you with some legal trouble.
I also had an agent tell me that he wants a copy of my bank account to show the bank, my thought, if that is the case, move on to another agent. Which I did, but I did tell him first that I wouldn't do that, as I am an investor and could get PML when I need it.
You could offer a letter from Coastal Funding for POF if needed. That is a good one to use.
Good luck
Sandi
may be just me (my state) but I've made several 100's of offers with agents this year and NEVER once had to provide a EM check up front or even a copy of a check. Always, upon acceptance EM is due within 48 hrs.
POF Yes, EM upfront No.
When working with agents: I do $500 EM in my contracts or 10% of pp (if Fannie Mae requirement for cash offers)
God bless,
Jen
If you need a financial JV partner, PM me. I need properties, so send me info on your best ones.