What issue to people run into making offers on REO to wholesale?
I want to get this business started and that seems like a good place to start.
Hey Sruddell,
Wholesaling REO’s has some challenges, not insurmountable, But not near as easy as wholesaling FISBO’s For sale by Owners.
First your going to need a good earnest deposit, usually it’s between $1,000 to $5,000 Then your going to need Proof of Funds, also the bank has a seasoning rule, sometimes they want you to live in the house for a year b4 you can sell it, or sometimes it’s just 90 days. Sometimes you can circumvent this by doing a double closing. Extra dollars out of your pocket.
Also you have to buy these bank owned properties thru a Realtor which in my opinion is worse than having bamboo splinters in your fingernails and a telephone pole crammed up ur patooie.
If the Realtor finds out your just a bottom feeding wholesaler and your driving a 98 Toyota & your idea of a fine restaurant is Taco Bell & ur going to need time to find a buyer and etc etc. You can kiss that deal goodbye.
If you want to make your life hard especially when first starting out, then try to wholesale REO’s.
If you want to do it the easy less painful way, wholesale houses that are fixers and privately owned with no Realtors involved.
Order that book on Amazon called “Real Estate on Steroids” by Jackie Lange.
And take action…
Rando