Jersey City, NJ · Member since 2012 · 17 posts · 0 votes
Hi I know that there has been some discussion about the finer points of submitting REO offers. But which is actually the proper format to use - sales contract, offer form, or formal letter?
And if offer form is the way to go, where do I get a good one, or can I just replicate the one an REO agent once emailed me?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
There is really no answer other than it depends on what the listing agent and lender (seller) are willing to accept. Some lender sellers want to use their own custom contract, while others will use the normal real estate agent contract for the state where the property is located; in either case the lender will usually have an addendum that will superseded clauses in the contract. Some listing agents are happy to just get a short offer letter, since it saves trees, and then go with the full contract once the numbers and terms are have been agreed upon. And some lenders require the listing agent to follow specific procedures, so not following those will just lead to any offer being ignored.
So, see what the listing agent requires. Often the listing will state some of these details, so that the agent doesn't have time wasted for silly stuff like this that can just be spelled out.
Jersey City, NJ · Member since 2012 · 17 posts · 0 votes
14y
Thank you. The other question I have is should I use my name or ... my name with next to it: "as an agent of an LLC to be formed"? Or should I just use my main business LLC which is already created, no personal name?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
How are you funding the offer? If you say its all cash, include a bank statement showing the cash. The name on the bank statement and the offer should match. If its financed, use the name from the lender approval letter.
Generally, its considered a safer practice to hold rental real estate in a separate LLC. But its more difficult to get financing inside an LLC. Conventional financing is easier in your personal name, but then you'll want to make the offer in your personal name.