Best Way to Wholesale HUDs and REOs

[Jeff Carroll]

Hi Group!

This is my first inquiry to BP but I've learned a lot from the site and appreciate all the advice that is so freely shared!

I have a few transactions under my belt as a Realtor and have also flipped a few short sales. I've also worked with some rentals and mobile homes too.

From all of this, I've learned I want to start focusing on wholesaling. I know I need to get offers out there so I've been marketing to probates and driving for dollars but I want to make more offers than these leads are providing.

I really want to start making offers on REOs and HUDs but I don't have the money to buy and double close to re-sell them.

I have read about using an LLC as the buyer then selling the LLC but I'm seeing more and more REOs asking for POF with the LLC as the account holder - which I don't have since I would be creating this LLC just to sell.

I've been studying more with Land Trusts to simplify the exchange to the end buyer, but haven't found any info on using a Land Trust to make offers on REOs or HUDs.

At this point, I'm at a lost for ideas on the best way to make offers on HUDs and REOs that will still give me a good chance to have my offers accepted AND make it easy to assign/sell to an end buyer without needing to double close.

I hope someone has a great technique they are willing to share!

Please help a relative newbie!

Thanks in advance - Jeff

[Wayne Brooks]

@Account Closed

Not exactly. State laws may allow (not prohinbit) assignments, but that doesn't mean any seller has to allow it. Regardless of what your state approved purchase agreement states, All banks, HUD, FHA, etc. have addendums (5-18 pages worth) that override the state contract and specifically prohibit the assigning of contracts on their properties. If you ever had an offer accepted, you would have been forwarded the required addendums.