Yes, all of the REOs I have wholesaled have been listed on the MLS.

I’ve never flipped a HUD home, but I know several people who wholesale them. I think with HUD, though, the money for the purchase has to be placed in escrow 24-48 hrs prior to closing, so you would not be able to do a simultaneous closing.

Steph

Thanks for answering my question regarding your article “REO Wholesale Deal: Step by Step”. I have one more question. Does this work for HUD foreclosures and foreclosures that have been listed with a real estate agent (listed on the MLS/FMLS)? Thanks.

Shawn

The title seasoning issue comes into play when you are selling to buyers who are getting conventional or FHA financing. Many of them will require that the title be seasoned for a certain period of time before you can resell (FHA, for example is 90 days).

I sell to cash and hard money buyers only, so I can turn around and immediately resell the properties. The only exception to this is Fannie Mae- they put a restriction on the deed that prohibits you from reselling the house for more than 120% of the purchase price for 90 days.

Hope that helps,
Steph

I’m reading your “REO Wholesale Deal: Step by Step” article that you wrote back in September. I know that certain REOs/foreclosures can’t be flipped or sold wholesale because they can’t be sold until they are seasoned. Because of this I was told that simultaneous and double closing won’t work on a lot of the REOs/foreclosures. Which REOs/foreclosures can be bought and sold like this one in your article? How can I tell which ones will have to be seasoned and which ones don’t? Thanks fore any help you can offer.

I found your article really a helpful and you clearly explain the methods step by step. I am going to follow all your articles. Thanks for the post.

I recommend Steve Cook’s wholesaling course. Google it and you should be able to find it. He pretty much covers everything from A-Z. It sounds like you already have a pretty good understanding of how it works, though.

If you’re going after REOs, you’ll have to use a specific contract that the listing agent (or buyer’s agent) can provide you with. Here’s an article I wrote that explains a little more about making offers on REOs…
http://www.biggerpockets.com/renewsblog/2009/08/13/ways-reo-offers-irresistible-bank/

As far as finding a good title company to work with, my advice is to seek out the active wholesalers in your area and find out who they are using..

Hope that helps,
Steph

I usually don’t put anything under contract unless I am 99.999999% sure I can sell it.

My recommendation is to take some time to learn your market before you start making offers, and I would also line up some active cash buyers and find out EXACTLY what they are looking for.

Doing this takes time, but it will take the guess work out of making offers.

HTH,
Steph

My offer was all cash, close in a few days (5, I think), 2k deposit, and I was giving both sides of the commission to the agent plus the selling agent bonus.

Yes, if you are making a cash offer, you have to submit proof of funds. I use a statement from a line of credit.

I gave the bank a 2k earnest money deposit, and then I had my buyer give me a 2k deposit once we signed the contracts.

Steph

This is a cool deal – thanks for sharing the case study. I wonder what really made your offer stand out among the other 20 offers and win out? Did you have an existing relationship with the listing agent? Did you offer a fast closing? You did mention you made a cash offer.

Did you have to submit a bank statement for proof of funds? And how did you handle earnest money deposits between you and your investor buyer?

Cheers,
Thomas