Hi BG members,
My husband and I are wanting to buy bank owned properties in WI area. Does anyone know how to go about doing this? It is my understanding there is no contingency period allowed for these properties, so we were wondering how people go about doing their inspections and close their deals.
If you are a wholesaler, how to transfer these type of homes?
Bill Gulley any thoughts on this?
Jill and Brian Zifko
They get listed on the MLS. They're usually sold as-is, which mostly just means the seller (bank) isn't going to make repairs or renegotiation on price for obvious problems. You can still do inspections, but the time period will be pretty short.
The banks will almost certainly forbid assignments. You would do a double closing, probably using transactional funding for your purchase. Some banks may impose time limits on transferring the property.
Not a particularly good source of wholesale deals, because they're on the MLS. Anyone can see them and buy them directly from the bank.
Have you heard of people buying this type of home with an LLC then transfer as a Quit Claim Deed?
I've heard of that, but wow that takes a lot of trust between the wholesaler and end buyer, because at some point either one of you will hold title or have the others funds in their possession while waiting on paperwork execution.
More reasonable is that the vestee gets re-assigned mid escrow with the blessing of the seller (not really reasonable). Or the wholesaler uses a trust and you switch trustees mid escrow, but most wholesalers aren't that adept.
Either of those scenarios I just mentioned aren't likely for a litany of reasons we don't have to explore at the moment.
Really...just don't buy REOs from a wholesaler. Or be happy with the premium you are paying and the reduced profit you will make on the flip...if you make a profit at all.
Best bet is just be the quickest on the trigger yourself when the REO listing hits the MLS, and start forging good relationships with the agents in your area who seem to get the most REO listings so that they will think of you first.
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