I understand that REO purchase contracts have a non-assignability clause which makes it difficult for a wholeseller to work with these properties, but there are ways around it from what I understand. If I decide to to a double closing, how can I pass all of the closing costs to my buyer? Is there an easier way to “flip” these properties without using a double closing? and do I have to come up with the earnest money for these properties? Thank you for your help.
-Derek Williams
From my understanding you can use an Assignment Addendum which can be found here http://www.yamon.net/resources/contracts_forms.htm. You both would sign this, and you’d state your assignment fee here as well. This relinquishes all of your rights to buy the property to your investor. Give a copy of that to the title company and you’d get paid at closing. I believe thats correct. Learned it right here on these forums 
Run it by an attorney to check if there’s anything specific in your state to worry about
Practically all REO properties are now sold via the MLS and practically all REO properties specifically deny the buyer the right to assign the contract, period.
Yes, if you want to make an offer on a REO, not only will you have to come up with an earnest money deposit, but you’ll also have to have either a pre-qual letter or a proof of funds letter to get the bank to consider your offer.
In a double closing, there is no good way to pass on your closing costs to the end buyer other than increasing your sale price.
Raj