Wholesaling REO's

[Jason Cummins]

I have gotten a couple deals done wholesaling. They were people who called me from a bandit sign, no realtor involved.

I have noticed that some of you may be wholesaling REO's. Usually that means there is a realtor involved.

I guess I am interested in the basics of wholesaling REO's. I have found a couple that might be really good deals. How do I get these under contract? Do I just submit an offer? If so, who's contract do I use? I have one that I use for end users, but I doubt a realtor would want to use it. And are these assignable?

The reason why I ask is because I have purchased an REO for rehab, and the realtor was pretty strict on how things were handled. I really have no idea how I would have been able to wholesale the one I bought, if I wanted to.

Thanks in advance to any help!

[Timothy W.]

I deal almost exclusively in REO's now. Every time I have had to sign an addendum from the bank that does not allow me to wholesale or assign the property. I get a private lender and close the deal then keep or turn around and resell. Have never been able to wholesale or assign one. Could be different where you're at, just keep an eye out for that addendum.

The process of buying an REO is different. Don't get frustrated at second round highest and best offers and all that crap. It takes a few weeks longer to get an REO under contract, but then the closing occurs much faster. It's not hard, just different.

Tim