Assignments/Finders Fees

Do you have buyers lined up and are they bank approved ? From what I understand it`s not a good idea to make an offer with out a buyer in place. In order to do a back to back closing you must have a buyer.As far as funding the back to back, typically all you need is the proof of funds letter from your buyers bank and you should be good.Honestly from what I am learning on my own is that with out a buyers list that is pre-approved you are really just spinning your wheels!
With out your buyers list . You have no sales.
I hope this helps,,,,,,, Good luck and forward thinking !!!

Like rjinvestments said, it is important to have a buyer's list. However, you can start building that right away. Also, for a double closing, you can use transactional funding such as coastal funding for proof of funds for your offer and to do the A-B funding of the first part of the double closing. Also, if you are doing REO's, you can try assignments (and/or assigns after your name)...some banks don't mind, others do. As far as the POF, having an end buyer w/cash in place and using their POF will usually carry more weight with your offer than a transactional POF.

Out of the last 5 REOs we purchased & the last 29 offers we made, NONE of the banks allowed assignments. We normally pay cash & then flip or lease. In the case of no money/credit, you would need to have the buyer in place & use trans/funding & just pay the higher premium. Keep in mind that sometimes that 2nd closing can be delayed, especially if the end buyer is financing. Another, safer way is to have buyers lined up & just find the properties & collect a bird-dog fee. We are working on one now that our fees will put on the buyers side of the HUD statement, so the title company will cut the check diretly to us. Gary/Jill

I know the bank requires Earnest money to compensate them for taking the home off of the market in case you don't close. From what I have been told it is usually around $1,000.

Most transfunding companies will only finance the purchase if end buyer (C) is already lined up. The bank wants proof of funds when the contract offer is submitted, then if accepted a deposit goes into escrow. So even if you can find a title company that's willing to do a double closing, (A) to (B) to (C) the same time, actually using (C)'s money to pay (A) & you being (B) getting the profit difference(& I have not found a local one yet) it's unlikely you'll be able to buy a REO.

I have not been on for a while, but finding buyer and seller go hand and hand with assigment. Like most of us out here we all have little cash to advance to REO. If your credit is not above 600, then joint the build a buyer list club. Find a very active/ investor group and learn who your players are and make friends fast. Follow Greg Murphy plan on finding your Seller, and you will find your buyer for assignment. Follow up with carol stinson's Assignment plan. That's what me and my wife did and now we have investor groups that are all over us for Deal we bring to the table. Oh one more thing find a good realtor that understand creative finance and your in action. We were lost too. But you just have to put in the work and it will show at some point. It took us a lot of restless nights and we findly found our place. Good luck.

Here what we follow as a rule for investor. 30% of Down payment. We line up buyer with nothing less then 8k to 20k down. The greatest thing is you make the rules.

My question is after you get listings of the REO properties, do your due dilligence and find a property that has a good amount of equity to sign off to your end buyer; how do you get a buyer to commit? I would assume that they would need to do their inspection, address check, etc. If you give them all of this without locking up the property they can steal from underneath you, but you can't lock up a property without a buyer, and how can you use your buyers POF because it will have their name on it and not yours. Won't the bank refuse it because you are putting in the offer, not the POF name? It seems to have a ton of variables, but I am willing to learn all I can so any more information about this would be awesome.

Richard
Bothell, WA

Awesome info!

Can anyone answer to post #10 on this forum?

Richard
Bothell, WA

Thanks for all the feedback.I am taking everything under consideration and learning alot from you guys.I just want to get one under my belt so I can understand the process better.

I just had this question answered. before showing any details to your buyer, you have them sign a Non Circumvent contract. this prevents them from going around you on any deals you present them!

What exactly is it and where do you get a copy.

Go to this website and put in your state.
www.uslegalforms.com

Go to this website and put in your state.
www.uslegalforms.com

thanks for your comment here. It has given me a lot of hope as my husband and I are just starting out in the NE area.

I haven't been on in a while. Thanks for the information.

Jo

Thank you for spelling this out so well. For those of us who are new, this is the kind of stuff (spelling it out step by step)that we look for. Those of you who have been doing this for a wile, forget that us newbees; need to know the step by step process; so we can see how it all relates and falls together. Thanks again.

Have a good day
Pattison

Here is a link I just got from another person's post that is an actual court case
from New York.

http://decisions.courts.state.ny.us/10JD/Nassau/decisions/INDEX/INDEX_ne...