Wholesaling REO scenario...

[Bradley Bladon]

newbie: so if I find an REO that has a strong equity position and I offer..the bank accepts, do I need to put down any earnest money? can I just make an all cash offer w/ a 30 day close window and farm it out to an investor and do a simultaneous closing? Do banks allow for this?

I search the banks websites directly as they usually have links to their portfolio of REO's and see deals fairly regularly that look viable to attempt to wholesale...obviously I've never done it...but the idea seems reasonable to me...so what am I missing????

[Wayne Brooks]

In most states, most title do.s will Not allow the end buyers money to be used for your initial transaction. But more importantly, the reality is buyers don't need to pay your mark up to buy a REO, they can just buy it direct themselves. To get a REO under contract you have to be the High Bidder, then turn around and find a buyer willing to pay more than all the others who saw it.