As I was reading through the many articles an idea poped in my head. Flipping forclosures. I know were to find forclosures and have an agent ready to send some offers. I know you can get these propertys that need little work for 10-20% discount but dont know specific demands of the forclosure sellers ie. bank, hud, fanny may etc… Does anyone thank this is feesable? Do these forclosure sellers require fast closing thus no time to find a buyer? Have to have buyer lined up before hand? Is there any resctrictions on the forclosure contracts restricting you to assign it? Just an idea. :banghead
Joe,
If you’re dealing with an REO, I think you’ll find it difficult to get a contract accepted with “and/or assigns” on it. Alternatively, even without that clause, I think you likely won’t get buy-off from the seller if you just try to assign it.
I suppose it would be possible to do a double close, but the one and only one I’ve been a part of with that scenario was a HUD home and they balked.
I have a friend in Maryland who buys in an entity name and assigns the entity to the new buyer, but this works for him because the setup is so cheap. My thought is this is doable because entities are familiar. I would think attempting this with a trust would raise flags.
Yes, the sellers typically want a fast close. No, I haven’t seen any contract restrictions against assignments yet in the ones I’ve seen, but the offer still has to be accepted. Also, in my area the same agents handle the properties and they will get to know you fairly quickly if you get active.
So, again, all this is mostly theory on my part and it certainly can’t hurt to try.
What is sighning as an entity mean?
Joe,
Depending on cost and other factors for your area, it may be possible to contract under an entity. In other words seller agrees to sell to My Entity, Inc.
From that point it may be possible to assign/sell the entity to another person if that makes sense.