All Forum Posts by: Stephani Davis

Eddie,

No, the Fannie Mae deed restriction applies to cash sales as well.

I've only wholesaled 1 Fannie Mae REO, last year, and had the same restriction. I was only making 4 or 5 grand on the deal, so it didn't effect me, as I wasn't selling for more than 120% of what I bought it for.

Steph

You can get a letter from a transactional funding source before you make your offer, so you can submit it with your offer.

Regarding the earnest deposit, yes, you are going to need to come up with the deposit shortly after the offer is accepted. It's highly unlikely that you are going to get 10 offers accepted at once, unless you are offering too much. If that were to happen, and you couldn't come up with the money for the deposits, you could explain to the realtor(s) that you no longer wish to move forward with the deal because you got another offer accepted. They won't be too happy with you, but it's an option.

If you are still worried about it, just make one offer at a time.

Good luck,
Steph

Hi Vanessa,

The document is something the attorney who owns the title co I use has them sign to cover his a$$. I don't have a copy of it. I just tell my buyers upfront what the deal is, so I know right away if there is going to be a problem (there never is). If they tell you they don't want their money used to fund your deal, then you can use transactional funding and just jack the price up to cover your fees.

As far as proof of funds, you can get them easily from a transactional funding source. PM me and I will send you a link.

Steph

Hi Vanessa,

I've never heard it explained that way, but I guess that makes sense, since you are essentially using your buyer's funds to fund your deal with the bank.

If you have a title company who has done these before, then you should be good to go.

I wanted to clarify that the bank's title company will be emailing everything to your agent, so just be sure to tell your agent that you wish to sign everything at YOUR title company and ask for all of the closing docs and wiring instructions be sent to your contact at your title company.

I don't explain the details of the simul close to the agents or the bank's title company. It will just cause a bunch of confusion. Just make sure the deal closes and everyone is happy.

Also, does your buyer know what is going on? When I close these deals, my buyer has to sign a document saying that he/she is aware if what is going on with the simul close. I have never had a problem doing it this way, but a freind of mine had a buyer refuse, and he had to go get 50k of his own cash to close the deal. Luckily he had it.

Hope that helps,
Steph

Karen,

If you are in Tampa, there are several title companies here who will do simultaneous closings, where you will not have to bring any cash to the closing table when wholesaling an REO.

I have done all of my REO wholesale flips this way, and have never had any problems.

Let me know if you need more info and I will be happy to send it to you.

Steph

The last couple bank deals I did, they wanted the earnest deposit in certified funds within 48 hours after they send you the bank's addendum.

You can try and get the deposit from your end buyer to use as your deposit w the bank, but keep in mind that some buyers will want their money held in escrow at their title company, so then you will still have to come up with your own.

Steph

Hi Stephen,

I've had this happen to me before on several different occasions, and I just ended up having to wait, and wait, and wait. One deal last summer ended up taking 3 months. I can't remember the specifics of why, but it had to do with an old mortgage..

I had another one last month where everything was ready to go at the title company, and all the asset manager had to do was sign the deed package, but he wouldn't. This went on for almost two months, and in the meantime, the roof of the house caved in due to heavy rains, and the bank refused to lower the price to account for the damage. I ended up having to walk away from that one in the end.

If you still want the house, you are pretty much at their mercy, and will have to wait until they get the problem straightened out. If you don't, you should be able to get out of the contract and get your earnest money back.

Good luck,
Steph

P.S.
It helps to call them every single day to check the status. Otherwise, your deal tends to get lost in the shuffle. I make it my mission to irritate the crap out of them with phone calls and emails until they get the job done.

Ditto what Scott said- drop the inspection contingency.

If your market is anything like mine (Tampa), there is a TON of competition for REOs right now, so you have to make your offers clean, or they are not going to get accepted.

A lot of the properties here are coming on the market at ridiculously good prices, and there are almost always multiple offers on them.

I got one earlier this month and had to go 10k over list price, offer cash, no contingencies, and close in 7 days. I also gave both sides of the commission to the listing agent, including the 3k selling agent bonus. A lot of the agents are dirty around here and will throw your offer in the trash can if you aren't giving them both sides of the commission. You will probably have better luck if you are making your offers directly to the listing agent.

Good luck,
Steph

I recommend Steve Cook's materials.

His wholesale course is under 300 bucks. I bought it and also went to his boot camp a few years back, and give both a thumbs up.

Steph

The Carleton Sheets course was my first re course also. I saw an infomercial @ 3am while I was on vacation (at a Motel 6- woohoo!). I put it on my Visa, and read the whole thing from cover to cover the day I got it in the mail.

Like Josh said, it's very basic, and these days, you can get the same info for free on the internets,

I'm glad I bought it, though, as it was what initially opened my eyes to creative real estate, and ultimately led me to being able to give the middle finger to my J-O-B. :)

I'd save your money on the course (or joining his "network")- you can get the same info here (better, actually), for free.

Good luck,
Steph