This way you won't have to "force" the properties to cash flow by throwing a massive down payment at them (which would tie up all of your capital), rather, you can use your money to purchase more than one property.

This was a favorite tactic for one of my clients and he was using this almost on a weekly basis.The reason I think this is such a killer strategy over many others is that HUD homes can be tied up for $500-$1000 deposit depending on purchase price....But the part that makes me smile, is that UNLIKE many other homes that you will be putting under contract....HUD is NOT IN A RUSH to have them closed....Since HUD isn't in a rush to get them closed this gives you more of a chance to market for buyers which is especially important if you're one of those people who was foolish enough not to have your buyers list in place BEFORE you started trying to do deals....On the HUD deals I've done here in Michigan, HUD doesn't require you to close until 60 Days AFTER they have signed the contract...In most cases that means around 70 days (That's a heck of a lot of time for marketing a home).The other major benefit to doing HUD deals is that if you're a person who can't make it out to look at homes every day HUD homes UNLIKE most REO's are run in an auction style bidding format with bids due daily at midnite and weekend bids are do on Monday....Meaning you can have the entire weekend to go look at HUD homes, at your liesure.HUD Assignment ProceduresFind your buyers ==> Put home under contract using your name or your llc's name ==> Use a “Add a buyer for financing†form and add your buyer onto the contract with you (Get you're assignment fee when you do this) ==> Have your buyer bring money to closing and both of you will sign paper work like in a traditional closng ==> Once the closing is finished and the hud agent is gone, simply deed yourself off the property...Leaving your buyer as the sole owner.Looks like they called my name, I'll finish this up later on....With TON more killer tactics.Eric Medemar

I'm trying to wholesale an out-of-state property and was thinking of tieing it up with a non-exclusive option agreement.

Also is it a requirement for a wholesaler to tie up the deal and then assign it to the investor?

Wholesaler called me because I have end buyers and his money is all tied up in a deal so he has no earnest money which is due by tomorrow.

I'm initially focusing on Richmond VA because of family ties and convenience.

I wouldn't be at all suprised if these are much less optimistic than the owner's provided P&L - which puts you in an even stronger position - because your currently accepted offer must now be reduced accordingly - after all, it's based on owner's own records and it appears they were less than forthcoming with you - why shouldn't you just walk away, what else are they hiding?

As much as I have been researching, reading, and helping other people find deals, I have never really analyzed the 2 properties that I am tied up in.It really gives me a starting point to really make a decision.

If you want to give it a shot make sure your upfront with her and don't tie the houses up under contract unless you will close on them.

Those other means that she has will be found by the bank and it will be tied up until the loan is satisfied.