Los Angeles, CA · Member since 2009 · 717 posts · 50 votes
Hello, I'm looking to work with a Realtor to start buying Reo's listed on the MLS. I've heard that Banks don't allow Assignments which is fine, but I have a Title Company that will do a double close without me bringing any money to the table. Is it possible to double close if I have a end buyer with a bank with no money down other than the earnest money? Also, I heard about buying with LLCs then selling the ownership to the end buyer is another strategy. Which method is best and smoothest? Thanks! :)
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
17y
Both methods are fine - most will use the LLC method because they can't find a title company to do a double close with no money from you.
In some states that is technically illegal although it is done often (or at least it used to be done often).
I would be sure of several things....
1. Your title company will really do it. How bad would it suck if you needed the cash last min and you didn't have it? So I would have the cash as a back up.
2. Be sure your end buyer is going to show up and/or be prepared to lose your EMD.
If you don't have the cash to close remember what you are doing - you are gambling with your EMD - you are going to the tables and putting $X down on the buyer - the buyer doesn't always show up.
So - yes it is possible to do it - if you have a title company that is ready willing and able to do it.
The fact that you say you can buy in your LLC and then sell the LLC leads me to believe you have the cash to do it - that is a good thing - be prepared to own the property yourself.
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
17y
Greg
Identifying your area might help. Nowadays even cities and counties are putting their fingers into investor business.
If you found a title company that will do 'dry closes" hold onto them. In the area I do business, the reo's are putting in the addendum no assignments and instructions to title company (their choice) not to fund their escrow with the funds from another escrow (dry close). so escrow will not close, and as Scott said in some areas it is now against the law..