Are REO properties possible to wholesale?

[bluenyella8]

Could any of you experienced wholesalers give me the unbridled truth about what types of properties can or can't be wholesaled? Is it more a question of the particular deal and the numbers involved or are some types simply not doable? :

[LoriK]

Read the article on this website - it's quite informative

http://www.reiclub.com/articles/cant-wholesale-reo

[bluenyella8]

Thanks so much LoriK, that article was very informative.

Another question about wholesaling: I have been lead to this avenue due to it's lending itself to the person with little cash or credit. I don't understand how such an investor can get around having to verify their ability to take responsibility for such a large sum transaction (especially if the seller is a bank). I am sure I could attain a deeper hue of red than what was described in that article if I were to be put on the stand about my credit or financial position, yet I have been told time and again that it can be done.
My confidence wavers on this point. A hundred vats of gratitude to anyone that can put my mind to rest on this point. (I do already have a 'pre-approval letter' from a HML but have been told it isn't worth the paper it's written on)

[Brandon Lambert]

Don't know who told you that a pre approval letter from an HML is no good, but I have used it as proof of funds many times when making an offer on REO's.  When you are dealing with a motivated seller (not a bank), they never ask for proof of funds.

[bluenyella8]

Thank you for that. What about banks?

[QBS]

Don't know who told you that a pre approval letter from an HML is no good, but I have used it as proof of funds many times when making an offer on REO's.  When you are dealing with a motivated seller (not a bank), they never ask for proof of funds.

Brandon I am VERY CONFUSED About that!!!!


I've been speaking to HML's and they are all saying that with my LOW credit score and NO money that I won't be able to do ANYTHING!!

I just spoke with a HML that said NO LENDER not even a HML will work with me since I dont have at least 30% down.

Like I said I plan on WHOLESAILING these Bank REO's I can't even make an offer because, I need Pre-Approval letter from a Lender and Proof Of Funds.

Is there a secret code so these lenders will understand what I need or should I just tell them that I reallly won't be using their money unless I can't find a buyer and want to do this myself(Which I doubt since I dont ant to rehab at this time)