I am trying to work with agents and have them submit my offers right,since i cannot do it directly to the listing agent right unless i have have my lisence,(i may get it this spring,but for now its not a option) can anyone chime in on the steps or best way to get a deal on reos using an agent or not. I feel like i dont have control of this process as i would like to , sometimes i dont even know if they submit them at all.
What i am doing is
1.)Find a property on the mls, run the numbers,then WAIT(lose 1-2 days here sometimes) for my agent to get me the lock box code so i can view the property for repairs.
2.) run the numbers again then WAIT caase these guys are busy (for him or her to submit my offer) by this time a week or 2 has gone by and i just dont have that kinda time i need to make $ ASAP)i know i could find a rookie agent but these agents are pros and they understand our business model so maybe a new agent wont work.
I would say find a new agent and explain the business model to them. I was an agent once and when I first started out I would deal with anybody who even acted like they wanted to buy a house without asking many questions. The new guys are starving for the business.
Deal with a better realtor. And depending where you are you can make the offers yourself directly. In FL we can but I use my trusty Realtor as she is an REO agent. Never get too emotional on a deal there are soooo many. Be sure to find buyers also…
Hold up, who says you need a license to deall directly with listing agents? You don’t. Most reo listing databases online provide you with the listing agent’s contact details right there. Call them directly, tell them you want to make an offer on the property and you need a copy of the mls sheet and pictures of the property. This is all through email, or fax if you prefer.
Once you indicate that you want to go ahead with the offer, you can either write it up yourself or have them send you their form-filled contract. You can simply add you addendum with the terms you need included and sign it and send it back. No license needed.
Question. So once i have an reo property under contract should i be informing the person im assigning the contract to that this is an reo property? It just doesnt seem that my position in the transaction is very strong. What objectives might i face when assigning it to an investor?
Agents are very flexible right now. I was recently contacted by a seller whose property was listed on the MLS. I told her that I would be willing to get involved if she was willing to pay a commission to the agent; she agreed to do so. I called the agent to explain that I was interested in the property, but I wanted to assign the contract, and the agent told me “No problem”. I already had a buyer lined up, so I didn’t waste the agent’s time.
As far as REO’s are concerned, it seems like the “Dough For A Day” scenarios are the current trend. You basically borrow funds to close the buy, then you flip the deal to your buyer (a purchase/sale to buy, and a purchase/sale to sell) on the same day or the day after. You must have a buyer lined up to do it this way - preferably an investor buyer.
I know of one such “Dough For A Day” lender that lends nationwide (disclaimer: I haven’t used them myself) - let me know and I’ll PM you the info.
From what i have researched you can make an offer under an LLC and instead of assigning the property to an investor you can just sell the LLC to the investor. To the lender the name on the contract hasn’t changed just who’s closing the deal.
You can not assign a bank owned deal. You must close first then sell. Whether its 2 minutes from now doesn’t matter. Find a title co that will Double Close most will if the end buyer is paying cash or hard money. I keep hearing about the LLC but have yet to meet anyone who has successfully completed that type of deal. Good luck