help needed on wholesale reo

[James Rush]

found a property 3 bed 1.5 bath. Asking 59,900. Look at the pictures. It needs a full gut to me. I know the home in the area got to sell for more than what there asking. I check it out on zillow just to get a rough estimate of what the home values in the area are.

I know that is not the best way to get comps. Anyways the value of the homes in that area between $166-189k

I called the agent. I asked if the home was a reo. He said yes. The bank has 3 offers and hasn't responded yet. Its been on market 40 days.

I told him I need to do some more due diligence and will get back with him If i decided to put an offer in.

I think this is a possible wholesale reo deal.

Problem is I don't how to submit an offer.
Dont have any end buyers lined up before hand.

Maybe im barking up the wrong tree.
Anyways let me know either way.

I am newbie who has been reading and reading and reading. Ready to make a deal happen

[Jon Holdman]

You submit an offer by writing a purchase agreement and submitting it via the listing agent. If you don't have an agent you're using, you might be able to do that with the listing agent. There is a standard contract you will use, along with a bunch of bank addendums.

If you get the contract accepted, you will need to provide earnest money. The listing agent might want it when you submit the offer. You might get them to delay until they accept the offer. But if the contract is accepted, you will need to provide the EM pretty quickly (a day or two). The listing will specific how much. I'd guess something like $1000 for that listing price.

If you're claiming you will be paying cash in your offer, you'll need to show proof of funding. Like a bank statement in your name showing enough cash on hand to pay for the property. If you're claiming you'll be financing it, you'll need to have a letter from a lender showing you're pre-approved for the loan. Sometimes banks make you get a pre-approval from themselves.

Banks typically have a standard time line for inspection and for getting the loan finalized. These are usually pretty short. If you don't back out before these time periods pass, they will keep your EM. So, you will need to find a buyer quickly.

You'll need to line up transactional funding. That's a very short term loan that lets you close with the bank using the transactional loan and then pay the loan off when you close with your end buyer.