Wholesaling Questions?

Question

Hello,
          
          I wasn't sure where to post this so I figured I would post it here. 
          
          This is the situation: 
          
          Looked at about 20 REO properties, this weekend with a Realtor.
          Found about 8 properties that have a substantial profit spread. 
          
          I talked to about 10 investors who seem to all be real estate agents, and do not want reos if they are listed. 
          
          The other part of the scenario is that I will be paying all cash using a transactional funding company. So I only have the money for the day of closing. So it has to be a cash deal. 
          
          Is there a way I can find a CASH Buyer for one of these properties, before I buy it or start negotiating it? I know there is way to do this but not sure.
          
          Please help, Thank you.

Andrew Massaro · Answer

There are ways... and you better know them before you contract on any REO's.  Find the cash buyers, then go get them what they want.  It's a buyer's market, Nick.  And they are your customers.  So find out what they want, and then go get it...

Nick Abbate · Answer

Nick- you can go to the teller wherever you bank and ask for a POF (proof of funds) statement right there. If the teller can't do it customer service will. 
Many banks have it available online. Just ask the bank.

Ask your agent what they need to present the offer and they will tell you. If you are new, don't be afraid of asking your agent what you need. No shame in being new...AND they work for you. But expect to fill out a pa have copy of emd check and POF statement. Once your offer is accepted they will want the real emd check.

Ryan How does this work, I just go to the bank and ask?

Double close no problem worked it out already.

Ryan Wilkinson · Answer

Nick- you can go to the teller wherever you bank and ask for a POF (proof of funds) statement right there.  If the teller can't do it customer service will.  
Many banks have it available online.  Just ask the bank.

Ask your agent what they need to present the offer and they will tell you.  If you are new, don't be afraid of asking your agent what you need.  No shame in being new...AND they work for you. But expect to fill out a pa have copy of emd check and POF statement.  Once your offer is accepted they will want the real emd check.

You will want to make sure you have a title company that will let you double close...many will not.  Ask the title company doing your sale, what they need you to provide then give it to them.

Then start looking for another deal cuz soon there will be 10 G's burning in your pocket.  Better to make it 20 asap!

Steve Babiak · Answer

So, that depends somewhat on where you are claiming to get your CASH from, since you are claiming to be a CASH Buyer (please don't take offense, but I doubt you have the cash at hand since you need to ask for this in detail).

Most REO listing agents want to see that you are willing to cut a check to them for the amount of the earnest money; if you can't write that check, then that tells them about all they need to know.  Once the offer is accepted, they will expect you to have certified funds for that earnest money.

Nick Abbate · Answer

Give all of the following to your agent: 
Write up your offer terms. 
Written proof of funds. 
Check for the amount of the earnest money (you only need to give your agent a copy of this, since the listing agent will be wanting this to be in certified funds, not a regular check).

Some REO listings will require the full realtor contract for your state (like 20 pages worth of paper), so your agent can present that if it is needed by the listing agent. Frequently, the summary of your offer is sufficient for the bank to receive in order for them to give a counteroffer.

How do I do a written proof of funds?

The stuff about the check please explain in futher detail.

Thank you.

Big Nick

Steve Babiak · Answer

Give all of the following to your agent:
Write up your offer terms.
Written proof of funds.
Check for the amount of the earnest money (you only need to give your agent a copy of this, since the listing agent will be wanting this to be in certified funds, not a regular check).

Some REO listings will require the full realtor contract for your state (like 20 pages worth of paper), so your agent can present that if it is needed by the listing agent.  Frequently, the summary of your offer is sufficient for the bank  to receive in order for them to give a counteroffer.

Nick Abbate · Answer

Back with a couple more questions.

I found an awesome property that is a REO I have a RE Agent that is a dream and I need to put this house under contract immediately. How do I do it? I already told my agent I am a CASH Buyer. My RE Agent is on board and there is an easy 10k in this deal.

Could someone guide me throught the complete process? Please.

Elisha Lowe · Answer

Nick,

Why don't your buyers want the reos if they are listed? I'm just curious.

Andrew's advice is on point.

Jon Holdman · Answer

Moved to wholesale forum

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