Who flips REO Properties

I am doing simultaneous closes with my buyer...meaning, my title company is using the funds from the end buyer to fund both transactions (the sale between me and the bank, and the sale between me and my end buyer). This way, I do not have to bring any money to the table.

Once you start closing deals with some of the REO agents, and they see you are a serious investor who actually closes, things become a little easier. It also helps to make your offers as clean as possible (no financing or inspection contingencies), and be able to close fast.

Hope that helps,
Steph

Edited: 06/26/2010 at 05:49AM

Clint Rasberry

Residential Real Estate Agent · Montgomery, AL

11 posts

Icon_minipost Sep 04 '08, 01:43 AM

I am a realtor in Montgomery, AL and I have seen several REO properties bought and flipped for a profit in this area. My company has flipped a few over the past year. The trick is knowing your budget before you make the offer to purchase and being able to turn it around quickly.

Edited: 06/26/2010 at 05:50AM

Tim W.

Real Estate Investor · Indiana, Indiana

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Icon_minipost Sep 10 '08, 12:13 AM

The addendums I've had to sign for REOs do not allow assignment of contract. The only method I see to "wholesale" REOs is to do a double closing. I'll be doing one in a month. Not a double closing though. I'm doing a pretty straight flip on this one - purchasing, closing and paying outright and everything then reselling.

Edited: 06/26/2010 at 05:53AM by Tim W.

Ryan Moore

Hard Money Lender · Bellingham, Washington

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Icon_minipost Sep 20 '08, 12:28 PM

Are you guys finding that the banks require you to use there title company to close the deal? Have there been any trouble with them allowing you to double close the deal?

Edited: 06/26/2010 at 05:57AM

Stephani Davis

Real Estate Investor · Tampa, Florida

190 posts
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Icon_minipost Sep 20 '08, 09:44 PM

Ryan,

Yes they require you to use their title company for the first half of the transaction.

I close the second half of the transaction at my title company.

It's a few more hoops to jump through, but not a big deal once you do a few of them.

Edited: 06/26/2010 at 05:57AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
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Icon_minipost Sep 20 '08, 10:15 PM

Stephani, are you able to use the end buyers money to do a deal like that, at two separate title companies?

Edited: 06/26/2010 at 05:57AM

Jon Holdman, Flying Phoenix LLC

Andre Scott

Residential Real Estate Broker · Fort Washington, Maryland

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Icon_minipost Sep 20 '08, 10:22 PM

Is this still legal? one of the top investor in DC got 25 years for it.

Edited: 06/26/2010 at 05:57AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
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Icon_minipost Sep 20 '08, 10:31 PM

For a double closing? Must have been more to it than just the double closing.

Edited: 06/26/2010 at 05:57AM

Jon Holdman, Flying Phoenix LLC

Andre Scott

Residential Real Estate Broker · Fort Washington, Maryland

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Icon_minipost Sep 20 '08, 10:42 PM

Are the the properties that you all aquiring hit the MLS at all, or are you catching them before hand?

Edited: 06/26/2010 at 05:57AM

Stephani Davis

Real Estate Investor · Tampa, Florida

190 posts
1193 Influence
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Icon_minipost Sep 20 '08, 11:47 PM

Jon,

Yes, it is done at 2 separate title companies. The bank's title companies are usually in another city, so they email all the docs to me, and then I forward them to my title company here, and we do both closings at my title company. They then wire the funds back to the bank's title company as well as FedEx the docs back to them. They call it a "courtesy closing."

Andre-

I am getting my deals off of the mls. There are so many REOs listed right now, it's not that hard to get a good deal if you are making offers consistently.

Edited: 06/26/2010 at 05:57AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
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Icon_minipost Sep 20 '08, 11:52 PM

I too buy REOs off the MLS. I've not found any other way to buy them. Even if you go to the banks REO web sites (list here, by the way), everything shown will be listed. I'm sure some people have direct contacts with banks, esp., smaller ones, but I've not managed to get that "in".

Interesting approach to the double closing. Think it would work if both title companies were local?

Edited: 06/26/2010 at 05:57AM

Jon Holdman, Flying Phoenix LLC

Stephani Davis

Real Estate Investor · Tampa, Florida

190 posts
1193 Influence
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Icon_minipost Sep 21 '08, 12:16 AM

I've been working on building relationships with some of the big REO agents here, and it is starting to pay off. It takes awhile, but once you close a few deals with them, they are a lot more willing to work with you and push your offers through.

As far as the double closing goes- I don't see why it would be any different if they were both local. It's worth a shot, anyway..

Edited: 06/26/2010 at 05:57AM

Andre Scott

Residential Real Estate Broker · Fort Washington, Maryland

27 posts
28 Influence
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Icon_minipost Sep 21 '08, 01:05 AM

In MD quality sales quick, so its super difficult to do that type of deal. Please advise the best way

Edited: 06/26/2010 at 05:57AM

Stephani Davis

Real Estate Investor · Tampa, Florida

190 posts
1193 Influence
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Icon_minipost Sep 21 '08, 01:43 AM

What does "quality sales quick" mean? I'm confused.

Edited: 06/26/2010 at 05:57AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
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Icon_minipost Sep 21 '08, 01:54 AM

Good deals sell quickly? I think that's true most places. Persistence and lots of offers will eventually pay off.

Edited: 06/26/2010 at 05:57AM

Jon Holdman, Flying Phoenix LLC

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