Updated over 13 years ago on . Most recent reply
Wholesaling an REO
First post guys! I come from the rental world, but recently liquidated and am moving to wholesaling, just fits my business model much better.
Here's the scenario: I made an offer on a REO about a week ago. Price was $62k, a realistic ARV is $85-$90k. I made an offer of $44,500 and the bank accepted it today . House was remodeled and needs 'maybe' $2k in cosmetic upgrades, investor bought it did the work and ran out of money.
My question: how should I wholesale? I don't think the bank will allow me to assign, or will they?
Most Popular Reply
Buy it in a business entity or trust and then sell your interest to the buyer...
That said, if it's really worth $85-90K and only needs $2K in rehab, I find it pretty amazing that you were able to get it at $44,500.
Why didn't another investor pick it up before you? Why did an owner occupant buy it? Are you sure your numbers are right?