Comments on: REO Wholesaling FAQ

By: Stephani

Stephani — Sat, 19 Dec 2009 15:36:08 +0000

Hi Robert,

You will need an earnest money deposit if you want to offer on REOs. They don’t cash the check until after the offer is accepted, though. You can also write into your contracts that the EMD will be deposited upon acceptance and ratification of offer.

Hope that helps,
Steph
.-= Stephani´s last blog ..Another Deal and a Word About Persistence =-.

By: ROBERT

ROBERT — Sat, 19 Dec 2009 15:23:03 +0000

Is there a way to circumvent the “earnest money ” request made by the bank ,or would a POF letter suffice ? If both are needed,then what…if you’re broke?

By: Stephani

Stephani — Wed, 16 Dec 2009 14:43:57 +0000

For me personally, I don’t put anything under contract unless I am 99.9999999999% sure I can sell it. I know my end buyers well, and I know exactly what each one is looking for in a deal (I don’t have a huge buyers list, I just concentrate on a handful of active cash buyers at a time). Many times I will call them up and run the numbers by them while I am still negotiating with the bank/seller to see if it is something they would be interested in.

I have back up funding in place (a private investor) in the event I can’t find an end buyer, but I’ve only had to use it once when my end buyer backed out of a deal the day of closing.

Not sure if that answered your question….

.-= Stephani´s last blog ..Deals and Toastmasters. And Stuff. =-.

By: J. Lamar Ferren

J. Lamar Ferren — Wed, 16 Dec 2009 14:31:38 +0000

I mean...Can't find a buyer .-= J. Lamar Ferren´s last blog ..Should We Continue Marketing Through The Holidays or STOP Now? =-.

By: J. Lamar Ferren

J. Lamar Ferren — Wed, 16 Dec 2009 14:31:01 +0000

Steph, I understand that it’s important to follow through on a contract in the event you don’t find a buyer… So are you suggesting that the wholesaler buy the property themselves and hold on to it until they can find a buyer? What do you do when you can find a buyer?
.-= J. Lamar Ferren´s last blog ..Should We Continue Marketing Through The Holidays or STOP Now? =-.

By: Stephani Davis

Stephani Davis — Fri, 11 Dec 2009 00:00:59 +0000

Hi JeVon,

You won’t be able to assign the bank’s contract, so you would have to do a contract between yourself and the other wholesaler, and then assign that contract to your end buyer. There will be two separate purchase contracts, and two separate closings.

Make sense?
.-= Stephani Davis´s last blog ..What Mortgage? Oh, THAT mortgage. =-.

By: JeVon C.

JeVon C. — Thu, 10 Dec 2009 23:17:07 +0000

Never dealt with a REO Flip. I want to do a deal with a fellow wholesaler and he just got a REO property under contract 12/09/09 . He doesnt have any buyers at this time and the property is 50% ARV 12 K cosmetic rehab from my inspection and price. My question is how can he assign me his contract (from reading REO’s are much different). I have a buyer ready but I would much rather get my wholesaler fee instead of a referral fee if possible.

thank you JeVon C.