Can you wholesale bank owned/REO properties?

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Account Closed Fannie and Freddie will actually place deed restrictions on a property so that you can not sell the property at all for a certain amount of time after they release the property.

Most commonly with Fannie Mae and Freddie Mac at least you cannot resell the property for more than 120% of the purchase price within the first 90 days. That means that if you purchased a property for $100,000 you can sell it for $120,000 the same day but not a penny more. If you want to sell it for more you'd have to hold it for 3 months which cuts into your profits and in many cases defeats the purpose.  With most deals I've found, the 120% rule gives plenty of room for a healthy wholesale fee after you deduct your closing costs. 

Hope that helps. 

With REOs, usually you are not able to "assign" the contract. They won't allow you to write the purchase contract with you as the Buyer "Chad Kennedy and/or assigns". This means you need to actually close on the transaction with cash or transactional funding before you can sell to a new buyer. If you plan to sell the property to a buyer who is getting an FHA loan, FHA will not approve that loan until you as the owner of to property have owned it for a minimum of 90 days.

You can also purchase in the name of a Land Trust then you can either assign the beneficial interest in the land trust OR you can double close the transaction. Land Trusts are free to set up and are private. You can change beneficial interests very easily which makes them the perfect vehicle for wholesaling. Some banks are starting to realize that many wholesalers are using land trusts so this mitigates some of the benefits. Certain banks (like Bank America) will often refuse to accept an offer if the buyers name is a land trust. 

I'm new to buying wholesale properties but I would think it would be easier to buy wholesale properties from motivated sellers in a pre-foreclosure or handy man special than a bank owned property? 

To answer the original question... "is it possible" . I can say definitively YES! I just closed one in New Jersey a couple weeks ago. It was not a smooth transaction by any means but I double closed it.