What is the best way to get paid off an REO if you dont have money or credit…I get all these leads from my realtor who is a buyers agent…I just don’t know how to structure a deal to get paid…These deals have 50K of equity or higher…
PLEASE SOMEBODY SCHOOL ME!!!
You can try to write and assignable contract although most REO deals will not allow an assignable contract. REO purchase generally require proof of funds with the offer. This makes it a little difficult if you have neither money nor credit.
You may want to spend more time working on lease options or subject to deals.
Once you get the leads from the agent, make offers on them all. Make super low offers. Ridiculously low. Most will get declined. A handful may counter and one or two if you’re lucky will accept. Make your offers contingent upon interior inspection. Presuming you made your offers low enough, you should have some wiggle room to tack on a few grand and wholesale it to your buyers. You do have buyers lined up, right??
Legal: Work for the buyer’s agent and have him/her pay you a salary while you locate buyers.
Legal: Get your own license and become a buyer’s agent. Then look up the agents who handle REOs in your area and advertise their listings.
Illegal: Have the buyer’s agent give you a kickback for every pre-qualified buyer you bring him/her who ends up purchasing a property.
Regards…
Fix up your credit. It is very easy and many companies are offering 75 day makeovers and the like (at least I know my company does a 50-100point increase in 75 days). Then line yourself up with an experienced investor as their credit investor. It is amazing the amount of money you can make as a credit investor and of course the knowledge to be gained…
Its nearly impossible to assign a REO contract. What you can do is alert other investors about the opportunity and collect a “bird dog” fee. Second, you can align yourself with hard money lenders or investors. Hard money lenders usually like a spread of 65% LTV and every investor has his own requirements.
I just got done dealing with a non-assignable contract on a short sale deal but the rules still apply to this situation… I went into escrow on contract with my buyer on contract with me and during the escrow period the buyer paid me a fee in another transaction to back out of contract before closing. Still an assignment fee but more of a private transaction and the bank got a little angry about it but was just happy to sell the house after going through the whole process the same way the reo department will be happy to have one more off the books.
Fixing a credit up to 100 points with a good company as Abirmingham said usually takes from 60 to 120 days and I would start from that. Then it will be much easier for you to make a deal.
Raise your credit score significantly in 60 days?
I must have been under a house or something…I have never heard of this. Anyone care to explain? :beer
Well, it is not posted on every corner but such agency and private firms exist and they usually came ti this business like credit counselors and serious mortgage brokers. So, don’t be surprised but it is possible. I know couple people who made this happen and how many others they helped.
Really!!! Can you name a couple legit companies that help fix your credit…I know alot of people that got scammed out of there money trying to fix their credit…
I could name them but I bet you never heard about them… for reason that I stated before – they are not advertised, it is a word of mouth and trust. If you want to know, PM me and I gladly share it with you.
They don’t fix your credit in 60 days. They fix your credit for 30-60 days. Then it goes back to worse than it was before.
It’s done by challenging every debt on the credit report. That gets them removed until the debt is verified, which doesn’t take long.
Some mortgage brokers will try it to get clients qualified for loans. If they time it just right, the loan might go through during the small window of opportunity.
Most mortgages, though, you get your credit checked when you apply and again the day before the loan goes through. There is more than a 30 day spread there, so “fixing” your credit won’t work.
It’s my understanding that challenging a debt gets the clock to start fresh and once it is verified, it will be there for 7 years from that date, not from when the debt was originaly contracted.
Not to mention, it probably qualifies as bank fraud.
The best way to fix your credit is to pay your bills on time and to pay off any judgements you have against you.