All Forum Posts by: Marco Islas

Went straight to our escrow officer and asked the same question. We wrote up the contract between the buyer and our LLC directly, and wrote in the comments "Buyer hereby agrees to pay "wholesaler x" an assignment fee of $$$". Just as I thought, this now goes as a debit under the buyer side of the HUD and doesn't effect the purchase price.

Thanks for all the comments, I'm glad we were able to get this figured out in the end.

The buyer is someone we've done business with before and if necessary he has no problem paying the wholesaler outside of escrow. However, not everyone will be as okay with it as he will. so I'd really like to see if there is a way to put this together so it can all go through escrow.
I don't believe there are any issues paying out a referral fee here, so I assume that instead of me paying that out it can be listed as a buyer paid closing cost on the HUD?
Correct me if I'm wrong, however as far as I know any "fee" that is listed on the HUD whether it be to the seller or buyer has to be paid but doesn't necessarily effect the actual Purchase Price on the contract, right?

This has probably been answered in a few different posts but by the time I dig and real through all the forum topics I think it's a little easier to ask away instead:

I have a Fannie Mae REO under contract for $70k and there is the usual almighty deed restriction limiting the next sale within 90 days to $84k. A local wholesaler has found a buyer willing to pay 88,000 for the property so that he can get 4k out of it himself as well. If you follow me up to this point than I'm sure you know where my question is going...is there a simple and easy way to structure the deal so that the property goes under contract for the allowable 84k and we can include the wholesaler's fee as some sort of closing cost that won't effect the purchase price? An assignment fee maybe?

I've been wholesaling and rehabbing for a while now, but mainly dealing with my own properties from the Trustee's sale. I'm usually turned off by the REO because of all the parties and limitations involved but this is a great deal that I couldn't pass up. Normally we would just sign up the end-buyer at the higher price and call it a day but that's not an option here.

Any help on how to properly structure this without going over the 84k max selling price and still allowing for my wholesaler to get paid out of escrow would be greatly appreciated.

I have done a few double closes with REO properties and can only speak about what has worked out best for me. I am an agent myself and have to agree with the majority of the crowd here. It seems that because questions regarding double closings or contract assignments were not included in the real estate exam most agents look at you like you're from Mars if you ever mention it to them. Probably isn't because they're too ignorant, its just a side of the real estate industry that they have chosen to stay out of...better for me because it would be pretty annoying to hear them ask about required petty repairs during a wholesale deal!

Personally, I don't tell an agent about any plans that I have for a property. I don't even bring it up unless they ask. The one thing that I double check these days is the bank addendum and any reference that it makes towards limiting the amount that the property can be resold for during a certain time period. Usually doesn't effect us anyways because a wholesale deal is normally less than 120%, but I still like to cover my basis.

Other than that you can open a second escrow with your end-buyer to have them set their earnest deposit and just make it contigent upon the successful closing of your concurrent escrow to acquire property. BTW, I do use my own funds to pick up the property and close the "B-C" part the next business day. It just keeps things simple and cleaner for the agents and escrow/title officers involved that way.

I know I'm probably preaching to the choir here but I thought I would throw my opinion in anyways.

Thank you for the insight Jeff. Just to give you some background on me I've been wholesaling and doing fix-n-flips for a few years now but lately I've had a growing curiosity to "get my feet wet" and learn about the Note Buying business.

Maybe I could email you directly for some more insight if you don't mind but my real questions is this. If I can locate a potential property about a month away from foreclosure, is it possible to call the lender and tell them I'll take the note off their books before the property goes to trustee's sale? Who inside a bank would i contact for that kind of information if it is possible? Thanks again.

Just submit it to a new lender. Only the FHA case number is attached to the property and not the appraisal. You'll have to get the # switched to the new sponsoring lender but that is it. I actually have more problems with the conventional appraisals now since the HVCC took effect.

It's not always the house being overpriced, I think lately these appraisers are afraid of losing work from the banks that now feed them business. If the report gets cut in value by the appraisal review team, they have negative points towards them. They already have to accept less money and fork over fees to the appraisal management co. they have to enlist with in order to receive the work, they can't afford to lose any biz at the moment. I personally think this has a lot to do with appraisal issues lately.

i also forgot to mention that I have even called a two of the bigger firms out here that handle the actual auction sales but they just refer me back to the lender as well.

Either I'm not getting through to the correct people or these banks are only interested in selling the notes in giant pools and not individually to an investor like me. Either way, any hints or advice for getting through to the right people would be greatly appreciated.

Hello all,I am new to this forum and this is actually my first post. So far I've seen a lot of great info on BP.

I apologize if this topic has been already covered, however I want to know if anyone knows of a way to buy notes directly from the big boys of banking - BofA, Chase, Wells, etc. I have spent a lot of my down time lately searching for certain properties in preforeclosure I would like to buy the notes on but have had no luck whatsoever getting through to anyone that has a clue of what I'm talking about. One property had enough equity that I was even willing to just payoff the loan, however I just kept getting sent to the short sale or loan mod dep't.

I guess my question is this...is it safe to say that it is almost impossible to buy notes directly from the bigger institutions? Should I just start concentrating on private lenders?

Thanks in advance for any helpful information.