I want to wholesale a bank on property but I don’t know how…Any advice?
Go to flipthis wholesaler.net! She gives great in sight on how to do it! She always has a e-book that I recommend!!
One way is to do a double close (also known as an A to B and B to C close). You would be party B and would use transactional funding to close the A to B part. The B to C would happen the same day as the A to B and would be at the same settlement company. Obviously, sell the property to the end buyer at an amount that would cover your closing costs and assignment fee.
Another way is to form an LLC (you need to file this with your state) and purchase the property with the LLC as the purchaser. You then find a buyer after the offer is accepted and sell the LLC (in an amount equal to your assignment fee) to the end buyer, who will close in your place.
A third way is to add the end buyer as a partner on the contract after it’s been accepted. You close together using the end buyer’s funds. After settlement, you quit claim your share of the property and get paid an amount equal to your assignment fee.
Very difficult to do and I do not recommend it. First Bank owned homes are listed with Realtors and dealing with them when doing wholesaling is a bitch. It will be difficult to tie up the property because before the bank accepts your offer you need to provide complete proof of funds and your deposit most likely will not be refundable should you not close the deal.
Doing a double close as suggested above is very difficult to accomplish. No title company or attorney now a days will do such a transaction.
What I suggest is learn to find private investors. Cash is King. When you have cash you can play hardball with the bank because you’re coming in with cash and can close in 10 days if need be. Then you can resell the property immediately or rehab it then sell. Once you sell pay your investors back with a healthy interest then do it again. Once you prove to the Bank you’re the real deal, next time you try to do a deal with them then you have a chance to tie up the home with just a deposit, then show it to other investors then just assign your contract to them.
Hi Gus, First there are many potential answers to this question. I’ve written some articles about it and you can click on the articles link above to find some of them. You can assign these deals with permission from the bank, and although they act tough, sometimes they give in and let you assign. If you are trying to hide your profit, this is not the way to go, however it is the way that I would do it. I rarely hide my profit from the buyer. If you do a double close you want it at one title company, not two. You can still hide everything if it is all at one title company. To get a more information related to property please visit this url : [Removed due to rules violation]
Thanks…Does this goes for short sales too?
You can assign any property with the permission/approval of the Seller and if it is in the agreement with the Seller as a condition of the purchase.
Kind regards,
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