25 -35k profit Advice Needed

[Nick Abbate]

I have deal where I could make about 25 to 30k, with there still being an amazing amount of room for my buyer to make a tremendous amount of profit.

Here's the dilema:

Property is listed REO
Don't have offer on it yet (would like to make an offer asap)
Do I need to set up an LLc to buy it?
What kind of funding to use? Hard Money, Transactional Funding.
(Who would you suggest)
Right now I don't have $500 to $1,000 for earnest money

Can anybody offer some wisdom and guidance, this would be greatly appreciated. I am still learning about wholesaling.

Thank you,

Big Nick

[John Klahn]

Nick,
I would call, email, and text my real estate agent right now and have them write up a contract to be submitted today! If you are certain that there is that much margin on this property the first thing to do is to get it under control (e.g. have it under contract) as soon as humanly possible. Denver properties like this never last more than 4 hours - seriously. Point by point:

- Property is listed REO
go call your agent!

- Don't have offer on it yet (would like to make an offer asap)
see above (you shouldn't be reading this far into the reply unless you've called your agent

- Do I need to set up an LLc to buy it?
you don't need to set up and LLC to buy it, if you are planning on making the offer in an LLC then you can just make a very unique name and check the Washington Secretary of State website https://corps.secstate.wa.gov/llc/pages/startpage.aspx to see if that name is taken. Have your agent use the name of this non-existant LLC on the contract and when it is accepted then you can set it up for $180.

- What kind of funding to use? Hard Money, Transactional Funding.
Make your offer a cash offer with no financing contingencies. Banks like as few contingencies as possible, in my experience. If you make the offer in your name and you end up wholesaling it you will need to get transactional funding to do the double close.

- (Who would you suggest)
Search the forums for this. I only use local lenders who don't lend outside of Colorado.

- Right now I don't have $500 to $1,000 for earnest money
In my experience when you make an offer on an REO you won't need deliver the EM check for about a week or 10 days. If this deal is as great as you say it is I would beg, borrow, (but don't steal) the money. You can get the money. Alternatively, if you find your buyer or, better yet, have one already lined up, they can front you this money.

Cheers,
John