Today I am bringing you the final post in my five part series where I have explained the various methods available to wholesale REO deals and get around the “No Assignment” clause that most banks include in their addenda.
So far, I’ve discussed simultaneous closings (my preferred method), double closings, using a quitclaim deed, and using an LLC.
Using a Land Trust to Wholesale
In this post I will be talking about using a Land Trust to get your REO wholesale deals to the closing table. This strategy is similar to the LLC method that I discussed in last week’s post; in both instances, you will not be selling the actual property to your end buyer, but rather, the LLC or the Land Trust which owns the contract to purchase the property.
If you decide to wholesale your deals in this manner, you will be making your offer to the bank in the name of a Land Trust (which you will create once your offer has been accepted), and signing the offer as the Trustee of the Land Trust.
Wholesaling houses is much easier when you have a list of active buyers lined up ready to purchase your deals. I personally spend just as much time looking for deals as I do looking for buyers. I am always on the hunt for new buyers, and as a result, I am usually able to unload my wholesale deals within hours of putting them under contract.
Joshua Dorkin
Charles Feldman
Ted Karsch.
Information Is To Investors As Yin Is To Yang
by Mike Farmer | February 26, 2008As promised, I’m going to circle back and cover a few pre-contract concerns that have to do with due diligence and determining value. I also want to address the importance of not falling into the trap of what I will Anti-Real Estate Agentism – AREA for short. Not only do first time investors [...]