All Forum Posts by: Phil Z.

You can find REOs for sale on the MLS or Auction sites. It's very very rare to get off market REOs, it's not even worth trying.

What you can do .. is contact local REO Agents and see if they have any upcoming inventory that may meet your needs. You might get an inside scoop weeks or months in advance, but it will still have to hit the MLS. While it may give you the jollies thinking your an insider .. in reality you can just wait for it to hit the MLS.

A) REOs are Foreclosures.

B) I will assume you meant PRE-Foreclosures (before they become bank owned).    These are often Short Sales in this market.  If your not very familiar with short sales, start learning.

It really doesn't matter which you choose. With the shortage of MLS deals and the abundance of cash buyers .. I would look for a deal any way possible. If you want to laser-focus your efforts, REOs are probably easier.

Wholesaling with LandTrusts are a 'system' sold by sleazy Gurus.  Forget that ..

First off, I don't recommend wholesaling Short Sale or REO properties on the MLS unless you know exactly what your doing. The key component is going to be whether the bank has an anti-flip clause in their addendum and/or if you can actually assign the contract. This is where experience comes in.

Personally I would not be a happy camper if I found out a buyer was 'trying' to wholesale my listing and was unable to perform otherwise.  BLACK LISTED.

No one on here can tell you if it's a good deal. What if it needs $120k and its actually only worth $210k repaired? No one knows. Hopefully you have MLS access and found a solid After Repair Value (because $230-300k means you have no idea). You also need to know a solid rehab cost .. well and septic could be $15-50k alone.

Just have the lender provide a letter that they pre-approved you for $xxx.xx

If the lender is a person (like a family member), they may also have to include their proof of funds with a letter stating they will loan the money.

If you have no idea about construction, you should get a full building inspection.  If you have experience, I would get a structural engineer inspection when you seen major cracks in the foundation or main level drywall.  There are also cases of improper framing practices like removing walls and 'opening up rooms' without proper support.

The Agents with LOTS of listings almost always have an account with HUD (FHA) or Fannie Mae.

Technically at first meeting, but more often ends up just prior to making an offer.

Wouldn't that be called the MLS? ;)

Most flippers still buying on the MLS. Personally I find little to no properties on the MLS that I would consider a deal, and even if it looked like a really good deal .. I immediately picture the swarms of investors ready to suck out the profit. There are deals but you may have to be less picky about your criteria and expand your location.