Wholesaling REOs in Indiana and SoCal Los Angeles Area

[Wyatt Merriweather]

Hello! Has anyone successfully done a wholesale on a Bank-Owned property? Reason I'm asking; family member works at a pretty large bank and he can get his hands on a list of homes that have not hit the market yet (Looking in the Indiana and SoCal markets). I know it's possible to wholesale, from reading so many articles, a REO but I was wondering how the process went? Did you need to have proof of funds to submit an offer? What paper work was needed different from doing "regular" wholesale deal? Any other information you have would be great!

[Kyle J.]

Yes, the bank will want to see proof of funds if you're making a cash offer.  Or a pre-approval letter if you're making an offer contingent upon financing.

However, if you're hoping to just simply assign the contract to the end buyer without closing on it first yourself, I think you're going to have a very hard time actually doing that because the bank is not likely going to let you assign the contract. 

There are other techniques you'll read about (i.e. purchasing in the name of an LLC and then transferring ownership of the LLC), and while it may work, there are other issues with doing it that way too.

The bottom line is REO's don't make ideal wholesale properties.