Banks Balk at REOs Wholesale Deals

[Lukeisha Carr]

Hi Everyone!

I learned the other day that most banks, if not all, will not accept wholesale deals as typically executed. The advice received was to create an LLC during the option period (a new one for each wholesale property deal). Put my name as one member of the LLC and the end buyer investor as the other member. This will cause the bank to sell the REO property to a legal entity. Then after closing, the end buyer investor would remove my name from the LLC.

Is there another way to achieve wholesaling REOs?  For example, has anyone succeeded to bypass the same issue with using a double closing, in which, I would buy the property using the funds of the end buyer investor, and then at same closing he'd buy the property from me? Are there any other methods?

Thanks so much for your replies in advance!

Lukeisha