What are the steps to wholesale an REO property if end buyer is an investor cash buyer or if end buyer is using traditional or conventional financing?
Can one use an Option to buy a bank REO instead of a Standard Purchase and Sales Contract?
too many steps and issues to list. you’re going to need to invest in a good program. don’t spend more than $300 on it.
What real Estate Investment programs do yuou suggest?
Ron Legrand has a good beginners program.
Ron Legrand? Does he even invest in real estate? I thought he just sold programs.
I hear Steve Cook has some great wholesaling courses.
Everything he went thru early in his career, I went thru.
He uses the seminars and programs to smooth out the peaks and valleys in this biz. We all know that the costs of the RE biz are constant, while the income isn’t; the experienced investors use their ability to communicate with other investors and would be investors to find partners and customers.
So yes Ron Legrand.
I’ve wholesaled a HUD, which works just like an REO. The contracts generally are NOT assignable. Two ways to wholesale an REO would be:
1.) Buy the property yourself, and have your end buyer come to the closing with the funds. Then quitclaim the property to your end buyer for your assignment fee.
2.) Do a double close. Meaning, you buy it with cash first, then sell it to your end buyer immediately after for a higher price, which includes your fee. This method means you have to pay for closing costs though. Just be sure to recoup your expenses in your resale price.
Good luck!
Steve Cook’s “wholesaling for quick cash” version2.0 is a great course along with Vena Jone-Cox wholesaling course. When getting a contact on REOs, you may want to use the LLC method to assign the contact.
What are the pros and cons of buying REO in landtrust and selling rights to the end-buyer vs doing a simultaneous closing?
Thanks.
landtrust
pros - you have control of the deal
cons- you could be stuck with it if your buyer doesn’t follow through
The point of wholesaling is to get in and out quickly.
simultaneous closing
pros - buyer never knows how much you make
cons- if your buyer doesn’t close you are still on the hook and will probably forfeit your earnest money, which is ususally kinda high for reos.
To do a simultaneous closing, I would recommend that you rent the money for a day, just for your closing. The buyer will also have to bring his or her cash as well. It works best when you have a deal where the purchase price is under 100k for your buyer
Sim
how do i rent the money. i am new at wholesaling and want to know about any re clubs that i can join in chicago and also how to build my buyers list. Can i work with an established wholesaler to see how the process works. Is it illegal to put the property under contract with the seller and then get another contract with the buyer at a higher price and get the difference at closing with an invoice release form.
look up “dough for a day”. also check the finance sections of forums like this for short term money lenders.
How it works is as follows:
You have a property that you are trying to wholesale. You don’t have the cash or credit to buy it yourself but do have a buyer that does. Because of the fact that many attorneys won’t let you do a double close with the buyers money, you borrow the money to buy the property from a third party for just that day. Those funds are wired into the closing attorney or title company’s escrow account for safe keeping. Once the buyer wires his or her funds into the same account the closing attorney will close the first sale between you and the seller with the borrowed funds. After that has been accomplished the transaction between you and the buyer is closed and you get paid the difference between the two deals less closing costs and the fee that the person that lent you the money charges.
The person lending you the funds won’t let them be available until the buyers funds show up, and won’t give them to you directly (thats where the closing attorney comes in).
Yes you can work with an established wholesaler (just do an online search for these terms “chicago wholesale real estate”).
No its not illegal to assign the contract, thats how many of the people on this forum get paid. Hope this helps
Keep in mind that most REO contracts are NOT assignable. This means that you will probably have to either do a double close, or quitclaim to the buyer for your fee after settlement with the bank. Good luck.