Comments on: How to Close REO Wholesale Deals (Part 2 of 5): Using Quitclaim Deeds

By: Jerod

Jerod — Thu, 27 Oct 2011 20:34:55 +0000

Can you use this process of quit claim on fannie mae properties?

By: Anonymous

Anonymous — Sat, 28 Aug 2010 02:00:05 +0000

Great stuff Steph.

By: Stephani Davis

Stephani Davis — Thu, 01 Oct 2009 04:48:28 +0000

Oh, and yes, I get a 2k deposit from my end buyer..

By: Stephani Davis

Stephani Davis — Thu, 01 Oct 2009 04:44:56 +0000

Hi Eric,

I had my atty draw up the paperwork on the few deals that I closed using the quitclaim deed. It’s been a few years since I’ve closed a deal in this manner, so I can’t really remember the specifics of the contract(s). If you decide to go this route, I would definitely consult w a local atty first just to make sure you have everything you need..

As far as the buyer backing out- that is one of the reasons I stopped closing my REO deals this way… if the buyer were to back out, then you are stuck with their name on the contract, which could turn into a huge mess if/when you find another end buyer to take their place.

HTH,
Steph

By: Eric Schwager

Eric Schwager — Tue, 29 Sep 2009 21:05:32 +0000

thanks, this is really awesome information. I’ve heard of this technique in general but never the details of the mechanics. Is there any standard paperwork that you use to document the agreement with your end buyer that perhaps you could share, or maybe just let us know what you think the most important points are?
Do you ask the buyer to reimburse the earnest money once they’re on the contract?
On the off-chance for whatever reason your end buyer flakes, are you then jointly held to be in non-performance?
Thanks again!

By: Stephani Davis

Stephani Davis — Sat, 19 Sep 2009 14:27:15 +0000

Hi Will,

I think they would require you to be on the mrtg if you are also on the deed.

Not 100% sure about that,though, as I have only done this with cash and hard money buyers.

Steph

By: Will Barnard

Will Barnard — Sat, 19 Sep 2009 05:51:25 +0000

Why would it not work with a conventional buyer Steph?

By: Will Barnard

Will Barnard — Fri, 18 Sep 2009 05:56:52 +0000

Of course this strategy requires your end buyer to come out of pocket for your fee. Since they have to be conventional buyers due to the FHA 90 day seasoning rule, that could be too much to ask of your end buyer in some cases. It also allows for your end buyer to know EXACTLY how much you will make before the deal is made.
That all said, it is a great tool and strtagey not only for REO properties but even more so for short sales.

By: Stephani Davis

Stephani Davis — Fri, 18 Sep 2009 05:04:41 +0000

Hi Will,

Actually, this will not work if you are selling to someone getting a conventional loan- I should have mentioned that in the post..

The deals that I have closed in this manner have all been sold to cash buyers.

And yes, just like a regular assignment deal, your buyer will know what you are making.

My experience has been that as long as my end buyer is getting a good deal, they don’t care what I am making. Some do, but most don’t. If I’m worried about it, I can always do a double close instead..

Steph

By: orion2404

orion2404 — Thu, 17 Sep 2009 18:22:11 +0000

Thanks Steph, for always sharing timely win-win strategies. Since joining BP I have been looking forward to your inciteful blogs..

By: Anthony

Anthony — Thu, 17 Sep 2009 17:25:11 +0000

Steph,

Top notch, as always.

By: Bill

Bill — Thu, 17 Sep 2009 17:13:46 +0000

Very timely Steph! Yet another tool us wholesalers can use to get those deals closed.

Thanks