Last week I wrote about a potential wholesale deal that a partner and I had.…
Browsing: wholesale real estate
Last week I put a property under contract with the intent of wholesaling it to…
This article is part 3 in a 5 part series, where I will be explaining the various methods available for closing REO wholesale deals, and getting around the “No Assignment” clause that most banks include in their addenda.
Today I will be focusing on doing double closings.
What is a Double Closing?
Just like a simultaneous closing, when doing a double closing, there will be two separate transactions taking place- the A-B transaction where you are buying the property from the bank, and the B-C transaction where you are selling the same property to your end buyer.
I’m currently working on my longest deal ever. So far it’s been about eight months in the making. Let me show you how this deal evolved so you can learn how to make $70,000…with only a few hours worth of work.
About eight months ago one of my partners got a lead from a guy who owns a beachfront condo in Virginia Beach, VA. It’s a gorgeous condo in perfect condition. The owner is an “eccentric” individual who travels a lot and didn’t want to have to deal with the property anymore.
I met with this owner twice in person to negotiate the deal. At first I thought it was going to be an awesome lease option deal. The mortgage balance was relatively low and the place could be rented out for $3,000 a week during the peak season. My partner and I were looking at over a thousand dollars a month in cash flow.
If you’re a wholesaler and have been considering jumping into the REO arena, you’ve probably already figured out that you’re not going to be able to assign your purchase contract to your end buyer like you would on a regular wholesale deal. Ninety-nine percent of the banks will include a “No-Assignment” clause in their contract which will prevent you from doing so.
REO Wholesales are Still Possible!
Because of the bank’s restriction on assigning contracts, many wholesalers are under the impression that there is no way to wholesale these deals at all. This is far from the truth, and while there may be a few more hoops to jump through when wholesaling REO properties, there are still several ways to get these deals to the closing table.
Over the next five weeks, I will be covering five different strategies that you can use to wholesale your REO deals and get around the bank’s “No- Assignment” clause.
Conducting a Simultaneous Closing
Today I will be talking about using a simultaneous closing, which is the way I have been closing my REO wholesale deals for the last two years.