All Forum Posts by: Matt Meyers

I have a potential seller interested in selling via L/O where I will be assigning my interest to a Tenant-Buyer. They want $240k for the house in 1-2 years and $1750 a month in rent. I intend to charge a tenant-buyer 3% as my assignment fee. What is the best way to do the numbers?

3% assign. fee x $240k = $7200
$1750 rent/month
$350 a month x 12 months = $4200 seller concession (rent credit)
Option Price = $240k + $7200 + seller concession of $4200= $251,400 option price

OR

Sale price $240k
Rent of $1750 + $350= $2100
Option price = $240k + $7200 =$247,200
Tenant buyer gets seller concession of ($350 per month x 12 months) =$4200 which makes sale price $240k - $4200= $235,800

My question is do seller concessions get added to sale price to inflate option price or do I inflate the rent price that the seller wants to make up for the concessions they will make later at closing? John Jackson, can you or any one else advise me on this? Thanks.

I talked to an REO listing agent today and I explained to him that I would be submitting cash offers and my funds would be coming from a private lender that I have secured. I told the agent that my POF letter would be coming from my private lender stating that I have funds available to purchase properties but the agent said that was unacceptable and I would have to have a POF letter from my bank with my name on it. How is what I'm doing any different than getting a letter from a Transactional Funding source? How can I successfully submit cash offers with acceptable POF letters on REO's when I a have a private lender backing my deals? HELP!
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I have another question on this topic. I've heard that some banks aren't accepting Tranactional Funding P.O.F. letters and I like the idea of putting in additional provisions saying that you have the right to change your cash source at any time as long as it doesn't effect the net proceeds to the seller. My question is...is it acceptable to get a P.O.F. letter from a private money source and submit that to the bank? I am a new investor and any thoughts or insights are appreciated.

I was referring to a back to back closing. Also, are the banks that are holding the REO's getting more stringent on double closings? What about getting the banks to let you use your own title company if you pay for title insurance?

Are there any title companies in Illinois that are still doing double closings? Specifically on REO's.

I'm in Illinois purchasing an REO cash and will be wholesaling it to a retail buyer. What type of closing costs can I expect? Will I be expected to pay when I buy from the bank and pay when I sell to my end buyer?

Eric and Stephen,

Do you ever have trouble using the banks' title companies to cooperate on a REO back to back closing? Do you bring in your own title company to do both sides of the deal, and if so what do you say to the bank to allow you to bring in your own title company to do a courtesy closing?