Have anyone here ever tie up an REO and double close on it. How does that work and what are the steps,please help. I have 2 under contract and i don’t wanna do the rehabs. Also, how do i find my end buyers fast. Well i also have 30 days to close, would love to find a buyer in the 10 days. Thank you, anyone please help.
REO deals typically don’t let you get away with a lot of creative methods. They are usually very straight deals. I suspect that you are going to find yourself with no good options in a very short time and lose the deposits you put on these contracts.
What in the world possessed you to put contracts on two REO’s when you didn’t know the basics of how to proceed with the deal, and you didn’t know how to find buyers for the properties?
This is a typical case of Ready, Fire… AIM!
Put together a potential buyers list first and then make offers. You are getting way ahead of yourself.
If you bought it low enough, you should be able to find a way. However, the problem is you broke a basic real estate rule- Know how you will profit from a sale before you make a purchase. That is the only way to know that you will be able to buy it under the right price and terms to make it profitable.
The biggest problem you have is that most banks and escrow offices won’t allow simultaneous closes, and won’t allow changes in purchasers - meaning flipping REOs is more complicated than flipping off a private sale. There are ways to get around this -using an LLC as a purchase tool, for instance - but you have to do that going in to the transaction.
Where are you located?
If you have buyers, and you need a double closing, you can use Flagship Title out of Wesley Chapel, Fl. They are licensed in all (50) states. For double funding use iVisionary Financial Solutions out of Tampa. They will provide funding and collect from the second closing.
As for finding a buyer, you might try the Auction format. Place and ad in the paper, sent out mailing to neighbor’s invite Realor’s etc. Set your reserves in case you don’t get your money and hope you catch a live one. Good Luck!