All Forum Posts by: Daniel G.

I am wondering has anyone done a REO Condo Flip? If so, please give details.

I may end up doing one in a couple of weeks for an end user. Never done one & I am curious to see how it will work out with the HOA....I think that might be a hurdle.

I have never used those programs. Best thing to do is find an agent, if you dont have a friend who is an agent, or just get your license. You can find out all the info from the mls instead of messing around with those programs that dont give you exact info.

1. no
2. yes and no
3. not sure if that was a ?
4. banks have ability to rent properties out. perhaps, its not a REO yet and the info is wrong.

Hope this helps!

Jscott said it right! I do exactly that. I have a license but I dont take commission on any deals. I make sure to let them know I am an agent, but not in it for the commission...they will open up to you like a can of worms...atleast some agents!

As far as finding good deals and marking up your price, I do this all day long and make sure to explain to my buyers that I do all the work so they have nothing to do, except go look at the property and I send them my contract. I have had no complaints or problems with this method.

But, the best thing is to get a hold of either prelistings or off the market reo's...

HI Dave,

I do not hold any REO properties to renovate and hold for the 90 day time restraint w/ FNMA. We just make sure we stay within the 120% rule. We also market for buyers prior to having anything under contract. Once we know their criteria we start the hunt.

This puts us in a position of authority to our buyers, of course explaining who we are and what we do, they understand, accept, and want us to do all the work. This typically works well with people who are just looking for good deals, but have very little clue on what to look for. We educate them up front and look for the best properties.

Happy clients, means great referrals!

We have put properties under contract, then market them immediately even before having it accepted. I already knowing it will be accepted since I keep very close communication with the agent. With this said, I market around and blast my buyers list. In turn, property is under contract, sold, and everyone is happy! :mrgreen:

Hope this helps!

I am sure transactional funding can work on selling LLC. Never done it before...

It looks like your trying to find the easiest way to close. Some banks are flexible in allowing you to use your title company. If they are not, you can do a courtesy closing w/ your title agent. You dont have to explain anything, just let them know you are doing a courtesy closing. :mrgreen:

I would have to say it would be safe, but not sure. I have never sold an LLC before when flipping REO. I know that there are some other flippers in here that do that on a regular basis. One thing I do know, its costly to set up multiple LLC's just to flip property through. And I believe if this method continues, there will be new rules/laws implemented to stop the use of LLC flipping.

From what I have heard, not many investors are fond of using this method, but hey it works....Im just not well versed in it.

Drenda, not sure how your contracts are in your state in selling an LLC. I would check with a real estate attorney! :wink:

Drenda,

JScott said it well! Very simple explanation to understand! :mrgreen:

Several different ways to close a deal. I like double close.
You buy with cash and your end buyer closes you with cash. :cool:

You got it!

No worries on the ?'s thats why we are all here to help one another out so we can ALL be successful!!!

Usually the banks will give you several different options. Again, each bank is different. Some will give you 10 days, 7 days, 5 days, or 3 days. The norm is around 5-7 days inspection period.

Inspection period is for you to do your due diligence. If you dont have a partner to help you find buyers and your doing it on your own, start marketing for buyers before you put anything under contract. This way you know what areas they are looking for and there criteria (ex. price, location, beds, baths, etc.).

Now if you put a property under contract and know you have the deal before you have a fully executed contract....start marketing before they approve you to purchase. Market like crazy, road signs, investment groups, email list, etc. Dont forget to mention to your prospective buyers you are a wholesaler and you resell foreclosures. IF your honest, they will have no problems with it. Picked that up from Steph in Tampa! :D

My advise on your inspection period, try to get an executed contract with your end buyer with 3 days for them to inspect and if they are ready to buy, put 0. Lock them in. This will solidify your contract on the second transaction, so your not stressing on your first contract with the bank. This saves me time and headaches...

I hope this helps, and keep firing away on your questions!!! :mrgreen: