Bank Owned properties

[Jessica A. Smith]

Hey BP!

Went driving for dollars this evening to add to my mailing list. One of the distressed properties I found is owned by Quicken Loans. Does anyone have any experience with wholesaling this type of deal? With it being bank owned would I have to actual purchase then resell or can an assignment of contract happen?

[Duane Ortega]

@Jessica A. Smith

Double close is the way to go as Steve mentioned with bank owned properties. Usually banks require a POF (proof of funds) or VOD (verification of deposit - actual available funds) which we can help you with (feel free to lookup my profile for our website). Once AB contract (A=bank/seller, B=wholesaler/you) is locked up , you must lock up the BC contract (B=wholesaler/you, C=end buyer) which implies that you must have a good buyer's list that is ready to buy. Double closing works best when the C buyer has cash or uses hard money. Conventional loans for C buyer may or may not work since funders like us required end buyer's funds to be wired in to escrow before we wire our funds.

Subsequently, you arrange to close on the same day with your title company.  If you need a referral for title companies in Texas, lookup my profile and email us for this information.  On closing day, the AB transaction closes and then the BC transaction in that sequence.  You receive your wholesale profit less all closing costs and funder's costs (such as us).

Hope this helps,

Duane.