How are wholesalers closing REO wholesale transactions in California?
I was thinking to ask the same question. I think somebody knowledgeable should come up some idea, facts and information. This post will definitely help me. Thanks. Nick Brian.
What is so significant about California to make wholesale transactions any different from anywhere else? Investors work smiliarily all over the country with maybe subtle differences.
All it is is buy at one price sell at another. Double, Simultaneous or single closing.
Buy with an llc, a trust, or your own name
Use whatever power is vested in those entities to assign the contract if need be
Smart wholesalers network with asset manager at a bank. Real estate listing agent. Loan serving company.
Can’t do a simultaneous close in California using your buyers money. Someone please correct me if I’m wrong. I understand California is one of two states that doesn’t allow this.
Double close using transactional funding in southern California with southern California prices, transactional funding gets expensive and eats at profit margin.
Is anyone wholesaling REO’s in California? I’m wondering how you are closing.
As was already said, California is no different than anywhere else, buy low sell higher.
As far as I know there is no law in California against dry closes, and if there is, then I’ve broken the law a couple of times in the last year. So, unless someone can provide a statue I will continue. Title company policy and laws are two different things.
The only reason for a dry close is to hide the amount of profit your making from the deal. If that is not an issue then use one of the other ways of doing it using a single escrow and save some money.
Well i live in the bay area myself and i have run into problems submitting my offers to the banks. The bank says i need a statement or vod of some sort in order for my offer to even be submitted. :banghead There are some companies that will provide this service for you but they charge enormous upfront fees wich i cannot afford. Can someone help me with this?
Any deal you submit an offer on with a letter that says “Proof of Funds” the banks and the agents are going to ask you for a Bank Statement.
If you are using Transactional funding you have to tell the agent that it is hard money, so it should be submitted on a hard money contract. They know what that means. They will draw up the offer and insert a clause in it that says “This is a hard money contract” If you need an example I’ll be happy to show you one of mine.
Even if your letter says Pre-Approval you will have to tell them you are submitting a hard money contract. Otherwise they will assume you have a conventional loan and will start asking you for the terms of the loan, length of time and other ridiculous stuff.
Bashir,
Good info thanks. I’ve had trouble with getting my POF (transactional funding) accepted because the agent asks for a bank statement. It would be great if you could show me one of your contracts as an example.