How to buy reo with no money down
I am on my first deal, I see a reo 3 bed /2bath in a great neighborhood for $6000. I know the house would sell quick for $50000,I will sell for $17000 to an investor I say wow. But I have no money. Is there a legal way of getting around "proof of funds" ? And how does that work with "double closeings"?
There is no way to get around POF. Go to coastal-funding.com, or tempofunding.com or just do a search for POF for transactional funding under google.YOU MUST HAVE AN INVESTOR LINED UP THOUGH. Not to get the actual letter for POF but in order to get this project financed. Before you do all this do your research on the home. Get the comps! See what other homes have sold for in that area less than a few miles away. Find out how much repairs cost and what the After Repair Value (ARV) is.
To get details on "double closings" type this in the search and you will see all the postings that have details.
I wish you well, welcome to the forum.
Lawrence, If you can find an investor to purchase this house, one of the methods is to put the house under contract and transfer the purchase and sale contract to this investor. Or, obtain an option to purchase and transfer this contract to the investor. Alnise was absolutely correct, it all depends on you finding the investor first. Or, purchase this property owner occupied (if you live close by) and then sell it.
Joel Soforenko
Continental Finance Service
Hard Money, Residential & Commercial Loans
Lawrence
Something listed at $6k that would "sell quick for $50k."
Be sure. Be very sure. Wish I could find a REO selling for 12% of a "sell quick" price.
And I think Joel missed the fact that you're talking about a REO. Don't think assigning the purchase will work.
Thank you for your help ,I found proof of fund letter. This opens the door now.Watch out here we come!!!
Hi Ralph, I know you can t assign REOs I needed a way to show from A to B part of the deal. Costal funding helped a lot.
have read your posts and it has been a godsend! I am learning something new everyday! I never even heard of transactional funding before today, because I have been focusing mostly on flipping.
Well, you have inspired me to become creative in finding money for my down payment and closing for my first home. I have a bank reo right now that is worth $300k and I can get it for $150k. It has minor repairs, but I was trying to come with the closing costs.
Now, that I've read your posts I can see that I can do a double closing on this house instead and then I would have money for closings costs to buy another house for myself.
How did you find your end buyers?I have joined several real estate groups online.
Also, do you use the same title company/attorney as the bank? At costal-funding.com I see that they want someone to use the same title company to close each deal.
Thank You Girl!
I was stressing so much trying to figure out a way to buy my first home before I jump into student rentals.
BTW I live in BK and and I think this is a great way to finally be able to stay at home with my son!
Where did you learn this from? The REO forum? I never even looked there, I guess I learned I have to be a master at one thing instead of a jack of all trades!
If you don't have any cash, where are you getting the earnest money? I haven't seen a bank yet accept an offer without at least $1000 with your offer.
Coastal Funding does not provide earnest money.
Banks don't usually allow contingencies on REOs, so be prepared to lose your earnest money deposit if you don't find a buyer by closing date.
Joel,
You know you cant assign a bank REO !!!!!
Come on now people, lets get back to basics.
I feel like I am taking crazy pills sometimes when I read the blogs.
Actually, although banks normally don't do assignments on REOs, I have heard of that Wells Fargo has accepted a few offers with an assignment in KC (and a few other markets).
However, the person who got that offer accepted, did state that he first got the offer accepted without the assignment, and added the assignment in later (as part of the negotiation).
Incidentally, I've had a few lenders accept offers on REOs with an EMD of $100-$300, and I know of others who have done the same thing. There aren't really any hard and fast rules; the banks are making it up as they go along; and the government is winging it too.
Hell 6 Grand!!!! I would find the money somewhere, take the property down myself then "whole-tale" it (combination of Wholesale & Retail) to the first person with the CA$H (preferably an end buyer looking for a deal).
If you do it this way you'll end up making more than you would if you wholesaled it to an investor.
Hope that helps!
hi loel
can you email me I want to have a chat about comm funding
and we have a system that does not require any money down at all and yes the banks will accept it
they do here and I believe and we will soon see if your banks there will also
and I think they will
a bank wishes to know taht it will get paid the moeny it wants its the way you negotiate the deal
and thats why we are comming to you guys from here in Australia
and I think we are going to have fun.
we have done no money down on commercials and resi here
and our major will accept them and they are not option etc as we have used them here as well
haven't seen a US option
but I think ur standard option should work just needs a legal to change for the market there
for me its not the no money done thats our problem
its the refinance and your score system
and if joel has funders thats what I am trying to find.
getting reo to me is not a problem if you give the funder a system or structure of how you want to proceed and if that system shows they can be funded out thats fine
your system does not have a way of proof of funding from here is sydney so we have to do it from there which is a bit harder
but not impossible and we are working on it at the moment so any funders out there email me so we can work out how we do this as for the contract of sale
we have exchanged and settled on $1.00 here not sure again of your sale contracts but it requires here that it has a monitary value it does not say how the settlement amounts are to be supplied
anyone that has comntacts within a reo vendor by all means send me an email
as thats what I am looking for at the moment
I want the LA and san diego areas at this stage.
please don't post the problems or issues with regards to buying property as we are Asutrlian investors and we are buy and hold investors so we understand property investing
and I am on I think 5 or 6 boards here and a few network group just on investing.
we are also not interested in assigning we are straight buy, refinance and hold
I heard on a blog that it is possible to flip an REO, in order to do this is you have to get the REO first,then find a buyer add them to the contract as a partner on the deal.Both you and the buyer go to closing,once you close with the Bank,you do a Quitclaim an turn your interest in the property to your buyer for your fee. Has anyone done this type of transaction.
I have assigned REO's and have flipped them, just depends on the banks I guess. If you try hard enough anything is possible
Originally posted by Lawrence Moss:
I am on my first deal, I see a reo 3 bed /2bath in a great neighborhood for $6000. I know the house would sell quick for $50000,I will sell for $17000 to an investor I say wow. But I have no money. Is there a legal way of getting around "proof of funds" ? And how does that work with "double closeings"?
Be positive on the repair costs AND the ARV..
Hey Phil,
The original posting is from may of '09. Hopefully he considered everything before he bought it.
Lawrence,
How did everything go with this? Have any updates?
Sincerely in Christ,
Leesa C.
Eph.2:8,9
Hi, would like to know to how to wholesale the REO, I've been getting the REO properties, haven't figure it out how to wholesaling it. Would greatly appreciated info if anyone had experience.
Hi, would like to know to how to wholesale the REO, I've been getting the REO properties, haven't figure it out how to wholesaling it. Would greatly appreciated info if anyone had experience.
Did you try to add "or Assignee" after your name/entity on the contract to see if they would accept that?