Can you flip a REO deal from the bank?
What’s your definition of “flip”? Are you referring to wholesaling to another investor, or actually purchasing, rehabbing, and selling to an end buyer?
I “flip”(can’t stand that word) REO’s all the time.One downfall here in alabama is this dumb yearlong redemption period.If you resale during that period I always pay for a redemption bond which is on average$500-$1000.It covers the difference of the price it was foreclosed at and the price the buyer paid.I’m not sure if this is a must,it should be to protect the lender,but I cover it either way to avoid trouble.I know other investors who don’t care,but that’s bad business to me.Best luck.
Can’t get it, will somebody kindly explain it in a bit simpler form? is REO deal possible if the scenario is to wholesale to another investor? thanks in advance. Nick Brian.
You can’t do traditional wholesaling on REO’s since banks won’t allow assignments so you have to either to the pocket LLC technique or do a double close with your end buyer.
Since you said double closing. That means you have to pay points for transactional funds. So a quick profit of $5k could dwindle down to $2k. Plus all the headaches of timing the two closings. Not sure if its worth trying to flip REOs.
bshirley,
I have to disagree. I know several people that are flipping REO and making good money doing it. So I do know that its great strategy if you know what your doing.
Also, when you do double close your buyers money funds the A-B transaction and you don’t need pay points or need any type of transaction funding. Plus, you can get your buyer to pay for closing and you don’t have to actually pay two sets of closing.
Hugh
You can flip an REO in a A-B then a B-C transaction all day long
People flip REO’s daily. Nothing new my friend. 95% of my deals are off the MLS with probably 95%, lol, being REO’s. Get in the game!
Nate-WI
What is the process if I wanna wholesale the REO to another investor!!!???
…How is the funding process handled? Dbl Closing… how is that best explained? Is there assignment fees involved? Do I Need to bring money to the table? How do I JUST BE THE MIDDLE MAN? I JUST WANNA SELL CONTRACTS… thats all wholesaling is RIGHT?
oh my biggest question is when I make an offer usually how long do I have to provide a buyer? or will that all be part of my well put together contract?
Thanks In Advance,
J.Pappas
so are people wholesaling reo’S TOO??? Is this really a profitable business?
If you’re an investor flipping REOs to other investors, then by definition, you’re wholesaling the REOs. Yes, it’s profitable. The only difference between flipping REOs and houses owned by non-institutional investors is you have a Realtor between you and the seller. The seller is very slow in making decisions.