All Forum Posts by: Michael S.

Whether or not he has owned it for a year is not your problem, and does not affect the title being clear. The 1 year owner occupancy rule is based on intent. Did he intend to live there for a year when he bought it? If something comes up and he decides he wants to sell it later (whether its a job relocation or because someone knocks on his door and makes him a good offer on it), he is fine to do so, because he didn't buy it with the intention of selling it. Again, not your problem -- it's his. Either way, he owns it and title is clear.

Probably not a good idea even if you can pull it off unless you have the cash to purchase yourself. If you tie it up and for some reason can't wholesale to investor due to miscalculations on your part, no investors buying, whatever.... you may have just cost the homeowner a month or so worth of working toward a short sale and now they have to foreclose.

However remote that outcome may be, that's why I dont try to wholesale them.

There are great deals through Homepath. Around here it typically goes like this: 15 days on market owner occupant only (first-look period) -- any offers submitted during this period will likely be held til the end of the 15 days then responded to. Next 15 days are available to all who want to bid -- if they still don't get any bites they will drop the price and it will still be available for all bidding (HUD switches it back to owner occupant only when price drops).

My advice is to call the listing agent and let them write the offer for you. Ask them questions and feel it out. Get them on the phone and let them work to get you a good deal. If that one isn't going to work, ask them what deals are good? As an REO broker they will know where the deals are and will help you. Talk to all of them. Good luck.

David,

If I'm buying a HUD deal with the intention of wholesaling (double-closing), I will set the selling agent commission to 5% of 3%. This amount represents what my broker's take will be since I am on a 95/5 split. MLS listed property that I own would be the same. If it does not appear on the MLS and I am not acting as an agent, I would not pay anything to the brokerage (but would disclose that I am an agent on the contract).

Get a PO Box if you want. I just used my home address.

First step is to offer an amount that is low enough to be a good deal. Run your numbers, check your comps.

If you get an accepted offer, you will will then need to figure out what to do with it. You likely won't be able to assign it. If you ran your numbers right, you'll figure out a way. I would double close, but many say you can purchase with LLC and then sell the LLC.

No, I understand what he's saying. I think that the way you instruct your (buyer's) agent has a big impact on how the listing agent perceives the POF. In my area it's not really looked over that closely. You also do not need any more EMD than a normal FHA buyer would offer on a retail purchase.

Just keep writing offers and use different buyer's agents to do it. Use different POF letters. When it works, keep using it. When it doesn't work anymore, change it up.

Wholesaler/Realtor in Dayton. [email protected]

I have a few properties under contract right now and could use a buyer. Anyone familiar with Lisbon, Ohio area?

Also have properties in Hamilton and Beavercreek, Ohio.

I agree with all above, but every REO deal is different and my advice would be to get a different agent. Tell them your offer is CASH and is a line of credit. Your transactional funding letter should suffice, if not find another one.

On a side note, for HUD deals you don't need to distinguish between conventional and CASH. So if nothing else start bidding there with your Realtor.

I would recommend it. As a real estate agent/wholesaler, I can't imagine doing it without my license. HUD bids, writing your own offers, listing your own properties; I don't see why it's not worth it. Not to mention the occasional friend want's to buy a home.

Just get your license. If nothing else you'll meet a lot of people that can help you with investing.