Investor · West Palm Beach, FL · Member since 2018 · 64 posts · 15 votes
I've done regular wholesale deals but haven't done REOs yet. I have few REOs I'm about to make offers on however banks does not accept assignment. Besides double closing, has anyone had any experience on doing this with quitclaim deed right after closing and exchanging your commission fee with buyer. I read the biggerpocket article about it and seems to be a smooth process, however not sure if it will actually be this smooth doing it myself. I will be doing a few of them I don't want to be raising a red flag anywhere with banks. Thank you for your input
@Patricia Mangham If I'm understanding it correctly, you're buying the property and doing a quitclaim deed right after? Why not just sell it normally right after purchasing it? Also be sure to check the restrictions in the banks P&S contract, sometimes they restrict you from selling within xx amount of days and/or above a certain % of purchase price.
@Tom S. I'm wholesaling the property. The usual way would be for me to put my name and/or partners after my name so my end buyer will be closing. However bank does not accept and/or assign on their contract. Yes correct I am aware of some of the banks contracts about restricting on reselling x amount of days which is why I'm asking the question about quitclaim during closing. In doing so, I will not be reselling anything I will just hand over everything to my partner (cash buyer) during the closing transaction but how can I do that if nowhere on the original P& S does it say I have partners (hence unable to put and/or next to my name). Can I get with escrow and ask to add an addendum to add partner to agreement and put 99% ownership he/she has and I have 1% ownership in the transaction then grant deed to give 1% back to buyer before closing?? Ok I think I officially confused myself...
@Patricia Mangham Yeah I noticed this is in the Wholesaling forum which is why I thought the quitclaim deed seemed strange. I don't think you can do that if you don't actually own the property first.
No, the REO's usually will not let any alternations to their contract. I've bought a few in the past and remember there was a cause specifically stating that.
Why not just double close using transactional funding? It's 1-2% of the purchase price fee, but it's a good deal that shouldn't be a problem. Otherwise your choices are limited, which is why more wholesalers shy away from REO's.
@Tom S. Thank you yes that’s what I was going to do I’m just trying to figure out now how I will sell to my buyer right after closing if there is a clause stating I need to keep property and cannot resal for x amount of days.