I have a REO property that I went to look at and it does not need any reapirs and it is at 70% of its market value!!! I have an interested buyer for the property who has been pre approved by his agent. The bank is requiring me to submit a preapprova letter to them so I can get that contract. I dont have perfect credit. Does anybody know how I can get a preapproval letter regardless of my credit? I dont need the funds Im using my buyers funds at a dual clossing. I just need to lock that contract in. PLEASE SOMEONE HELP ME!
Look into hard money lending. They tend to look at the deal and not the credit score. Look under Investor Resourses to the left and click on the Hard Money Lenders. There will be a list for you to choose from. Some are national and some only do a few states. Click what you need and GO GO GO!!! :deal
What do you mean when you say “pre-approved by his agent”?
Is there another realtor involved?
As was stated, most hard money lenders will give you a pre-approval letter. You just have to ask around.
Steph :cool
I mean that he has his agent that has him approved for his loan to buy the home from me. I have asked around and have not found a hard money elnder that does not require a credit score of at least 620.
How many hard money lenders have you gone to?
They are out there, it is just a matter of finding them. Seek out the investors and wholesalers who are active in your market and ask them who they are using.
On a side note, if your buyer is planning on using a conventional loan, you may run into trouble with seasoning. Also, if he/she is working w an agent, how is the agent getting paid on this?
Steph
HE IS PAYING HIS AGENT HIS COMISSION. HOW DO U FIX THE SEASONING ISSUE? IM SORRY TO ASK SO MUCH IM JUST NEW HERE. :biggrin :help
You need to find out from your buyers lender if they have seasoning requirements.
Does the other agent (your buyer’s agent) know what is going on? I don’t see how this transaction is going to work if there is another agent involved. I’m confused.
Steph
.oO Why is the agent pre approving the buyer…?? Hows about a letter from HIS bank. No money no deal.
you have to understand how wholesaling works.
when a property goes to an REO, regardless of what the REO says, YOU MUST FIRST RUN YOUR OWN NUMBERS and then you offer them whatever the price says according to YOUR numbers and you have to subtract YOUR COSTS, acquisition, repair, sales cost, etc. whatever that number is let’s say $80,000 . . . that’s the number you contract with the REO and on that contract you have an EXIT strategy and you must be able to ASSIGN the contract, that way, if you can’t find a buyer you’re not stuck with the property.
in your scenario, you found a buyer, now you can turn around and assign the CONTRACT to the new buyer and use their pre-approval letter to qualify that person in the deal.
WHOLESALING is based on acquiring the CONTRACT not the property. it defeats the purpose of wholesaling when you are buying the property under your name and you can’t assign it to anyone else.
if you need more information, read a lot of books on wholesaling or go to seminars, the best one www.thenationalforeclosureinstitute.com no BS and well worth the money.
i’m doing 10 deals right now just on wholesaling :biggrin