Question about offer on REO

[Kobus De Villiers]

I'm putting together an offer on my first REO property to wholesale. Fortunately there is no seasoning problems but they do have a paragraph to state that I can't sell for more than $x.xx in a certain period. I'm trying to negotiate this to 20% of purchase price to give me enough spread for a wholesale deal.

Anybody have any experience with this and have some general guidelines to consider. I'm thinking 10% may not be enough to cover transactional funding costs for double closing and giving me enough negotiating ability.

This is on the deed so it would potentially impact the rehab as well. Should I include my rehab estimate and negotiate with that in mind to cover my buyer?

Thanks.

[Will Barnard]

I see what you are attempting to do, and I don't know your area specifically, but in general, finding an REO on the MLS with enugh spread to have a wholesale fee, costs of interim financing, and still enough spread to attract a rehab investor is difficult at best. To do such a thing, you must either find that needle in the haystack, or create relationships with those capable of delivering product at such discounted prices. This is often accomplished with properties from private homeowners and not from banks unless you have the contacts I spoke about. gain, there are exceptions to this statement, but more often than not, you will find this to be true.