BiggerPockets

If so, what are some things that might trip up a newbie?

Tons of things. For one, a lot of times it's their way or the highway. If you are submitting one of your own contracts be prepared to be countered with a contract of their choosing with no contingencies. Submitting all your reo offers with proof of funds and earnest money will save you some of the hassles.

What if I have found a REO and have a buyer in mind that is intending to use a hard money lender. Do those work too?

99.9% of banks don't allow assignments. Be prepared to double close using flash funding or cash of your own. Other than that shouldn't be a problem if your buyer is all cash or using a hml.

no assignment. double-close, and use two title companies, if necessary (a to b transaction with one title company, b to c with the other). that way, the bank doesn't know you're flipping it... and making jack. why they care is beyond me. but some do...

If it truly is a "Cash" buyer, you shouldn't have a problem doing a back2back closing, as long as the lender on the a side doesn't do anything stupid with clouding the title for resale. Assignments are a bit tricky as most of the major banks no longer permit it. Good Luck

[LINK REMOVED]

co-owned by my good friend, jason medley.

i wasn't saying you had to use two title companies, but if it's needed to get it done, then do it. if you can back-to-back with one, that's much easier.

Ryan

Think in terms of avoiding the b-c leg if C's money has seasoning issues. When I make offers on REO's or even SS I put the buyer as me and et al, vesting to be determined in escrow.

If C's money has seasoning issues he joins me in the a-b leg and buys me out in escrow,or even after, and we don't have a b-c leg

Sorry to be short on details but I really do hate to type since I'm still a hunt and peck typist..

One closing! Write contract using a land trust from bank. Ex: Buyer: American Bank #76589. Thus, transfer land trust agreement to your buyer at closing.

Originally posted by Justin

Andrew, are you using flash funding for this type of transaction or your own cash? I haven't found a flash funder that will allow closing at two different title companies.

I belive this statement by Justin is a bit outdated as he NOW does now of a funder who will provide this service.
I just can't mention who due to forum rules! :)

Originally posted by dc_lmc

Anyone can answer. What is the minimum dollar that a company will lend for flash or transactional funding? I have smaller deals (5-15k).

Unfortunately I can not answer that question here in the thread due to forum rules but if you send me an email (located in my signature below) I can advise you on that.
I can say that almost all transactional funders have a minimum charge, so your low price pints would just fall into the minimum charge guidelines.

Originally posted by dc_lmc

If Randle has a end-buyer using hard money financing while using the double-close technique; what will happen when the hard money lender pulls title and does not see Randle or his company on the title? Is this a valid concern when the PA has been arranged with Randle and the end-buyer?

Hard money companies, at least the ones I've dealt with, do not real aggressive on researching this. They understand wholesaling and as long as the property is a good deal, they work with it.