I am about to put an offer in on my first REO property. I am going to do a same day close with flash cash. My flash cash funder wants to have a buyer in place before I can submit an offer but I don’t know what the accepted price will be until I get it back from the bank. I cannot shop it out to buyers until I have an accepted offer on the property. Does anyone know how to get around this? I am able to get a POF for the bank but am not sure if they consider this sort of private funding solid or not. Any suggestions???
Must have buyer in place before offer is submitted.
Cannot market until offer is accepted.
Wow, VentureInvestments, you’ve really boxed yourself in. One of these constraints has to be relaxed for this deal to happen. It sounds like you have a particular property in mind. Realistically, do you think you can buy your first REO with one offer? I do disagree that you won’t know what the accepted price will be. You do. It should be your firm offer to the bank.
I have no idea, though I could guess, what “flash cash” is. I’d avoid gimmicky alliterative lenders in any case and opt for the more traditional – especially since this is your first REO deal. The fastest close and fewest contingencies will be the most appealing to a bank. Your lender isn’t helping by placing additional demands on the problem.
When you say same day close, do you me an assignment of contract? Are you sure the bank who owns the REO will allow this? Most do not.
Good luck. I’m curious how this turns out.
Honestly i wouldnt have told the lender about the deal until i had my deal accepted from the bank and then the buyer. Really you should know what your buyer wants before hand and look for what he/she wants not the other way around. That way when you do find what your buyer is looking for he/she will say “that’s what i was looking for bring me more of the same” Now your risk is low as far as finding investor to buy your props. Find buyers first then props
The cash flash or whatever it is can’t tell you you can’t make an offer. My mother can’t tell me not to make an offer so what makes you think they can? :shocked If the numbers make sense a bank should be able to fund the deal only to get their funds back immediately since your planning on doing a double close(i hope)
If its a good solid deal then the buyers will come. How long did u give yourself to close with the bank? Can u opt out the deal? The only bad thing about opting out of the deal is that you run the risk of being blacklisted and you definately don’t want that.
Also Equity is right they should either accept your offer or counter
wishing u the best
-icangetitdone
The problen with flipping REO’s is that you may need to close on them first and wait until you get a Buyer… so a flash cash lender or transactional one day lender will not work.
My experience with REO’s is that they really do not accept much lower than what the listing price is, (here in Florida anyway) so if you were to market it then I would go with worse case scenario with the price being the listed price. But then do you want to market a property that you do not have tied up?
Usually banks want to see $5,000.00 deposit once they accept the offer. If you do not have that then there will be no accpeted offer. It is a lottle difficult I think unless you have your own cash so you can close in case you need to.
Another thing to keep in mind is that REO property owners are normally out of state.
In the REO homes i’ve purchased, it takes a few days to fund and officially close AFTER the closing takes place. You will probably not be able to do a same day close. For you to officially own it, the owners have to sign off on the deal. And they don’t sign until after you sign. All docs have to be mailed to them and then mailed back to the title company to record docs.