Important!! Is anyone having success flipping as an Individual?

Question

I am going out and start finding properties to buy and flip and I recognize the importance of forming an LLC to do flips, especially with the banks.

Question:  Is anyone, having success buying REOs from the their local Bank as a Sole Proprietorship?

I heard many stories of them frowning on an Individual being listed as a Payee on the HUD in a Transaction and receiving a Large Sum of money.

What are your thoughts on this?

It would be especially helpful if someone from Massachusetts could answer this, but any State will do. I can always research my state's regulations.

I want to buy REOs from the Bank. Use transactional funding for the DP and Closing Costs.

First transaction with the bank would be done at an agreed upon Title Company. Hopefully the bank would allow the title company that the Funder needs to facilitate the transaction more smoothly.

I would close with the Bank and then have another closing the same day or the next day with the third party buyer, who I already have found.

Is anyone now, successfully doing thes types of transactions?

:D

Chris Martin · Answer

One big challenge will be if there is a deed restriction.

If you are buying, you will be the payor, not the payee on the HUD. Are you talking about the B-C transaction, where you will be receiving a "Large Sum of money" after the flip? I would think the "C" buyer would have a hard time getting financing in this case....