Any advice on wholesaling REOs? and what process to go about it in Boston MA?
I'm in Delaware so I personally don't know how the market is in Boston but if you could find a motivated seller who just wants to sell thier property bc of foreclosure, death in the house, property the owner doesn't want or etc. if you can find this someone who is motivated, that would be easier than trying to wholesale a REO property bc its gonna be harder trying to wholesale a REO bc your end buyer (typically a house flippers) can simply buy it themselves so if you have a motivated seller who has a property or even a stressed one that they want to get rid of, the goal is to get it for a low price to where you can make some profit off of it and to where the numbers still work for your end buyer who lets say is a house flipper can still make 20-30k bc they do all the hard work and you can still simply charge an assignment fee of however big or small to where the numbers still make sense but an off the market property is definitely the way to go.
I hope that I helped you and I'm 18 so im still young too but ik what im talking bc i am a wholesaler but if you ever have any future questions I'm always available to answer them for you
@Alwin Ricketts Don't forget that the only legal way to wholesale in MA is to buy a property and then resell it - unless you have an active real estate license and are working under a supervising broker. And even then, you'll need a listing contract with the seller.
Once you own it, no license is required.
REOs will not be assignable. You would have to purchase the property yourself and then resell.
@Alwin Ricketts 99% of the time, wholesaling REOs are not possible. By definition, REO is a bank-owned property that is under foreclosure. Banks are such massive entities that they write their own contracts whenever a property is sold. In almost every circumstance, banks specifically prohibit "assignment" in a purchase agreement. Even if you write an assignment clause in your initial offer, a bank's contract that you sign will supersede it and prohibit you from assignment.
If you were to try and double-close a property (which means you'd pay double closing costs), understand that you're trying to sell a product to an investor buyer, who probably already saw this property listed on the open market and either put in a bid, or passed on the property. Trying to wholesale a REO property in most cases serves no purpose because everyone already saw the listing. You're essentially trying to sell: contract price on REO property + two sets of closing costs + your wholesaling fee. Unless you somehow got a competitive advantage and managed to purchase the property for under its listing price or were marketing an REO that never reached the open market, trying to wholesale REO properties is a waste of time and money.
Off market REO yes thanks for that input thats something for me to look into as far as those thanks and for anyone els input as well.
@Alwin Ricketts I've never had any luck with an "off market REO". Anything I'm aware of, off market, is just waiting to be listed by the bank's agent on the MLS, for maximum exposure and bids. They will then control the whole process, with their contract and their restrictions.
Thanks good point as well.