I am just now starting to invest in REOs,
If i find a property through a bank for 60k and i know its ARV is 115k from comps that i researched how do i sell it to an investor for a higher price if the investor can look up the property's current price. If i want to sell it for 70k and he looks it up and it says 60k how can i sell that without him going behind my back to the bank like i did???
thats always been my fear since im using transactional funding.
If you tie up the property with a contract and it's a really good deal they will be more than willing to give you more money than what the bank is asking. My advice would be to do some direct marketing to find the really good deals this is where you can do well wholesaling, good luck and God bless.
yeah, you need to get the property under contract to protect your rights, there are a few ways to do this.
The first and most common is to take the contract and double close with transactional funding.
the second is take a buy contract and record it, then you can close once and get paid to release your contract this requires a competant RE lawyer and a bank that will allow you to assign or release (depending on your state laws)
lastly, you can contract with a buyer to act as a consultant and get paid to find him property but that takes a relationship with a specific buyer. You can do this for out of town or out of country investors.
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