Thanks for your time and help!!!

First - welcome to the DG family and for taking action in reading the books and locating a property! It sounds like you might be in a position to either bird dog or assign some deals in order to get some money in the bank and pay off your credit card debt. Run a 'ghost' ad on craigs list and get a buyers list started! You might want to inquire about owner financing - thats another possibility -owner finance if they are willing to do that, or find a partner to invest with. I did notice you said 'maybe' in your rental amount. You really need to be very smart and do your due diligence. Find out FMV of property, run comps for that as well as rental potential. In order to buy or assign or birddog any deal you must know your numbers! Again, congrats on taking action and you will find the best strategy to get started with!

Is there any way to assign a property that is a REO? I found one listed for 49000 FMV is 89200 its been on market for more than 90 days needs some TLC. Do I just say that I want to assign it as part of my offer on the property or what do you recommend? I believe if I get this deal I could pay off CC debt and then I would be well on my way to get rental properties. Thanks again for the help.

Be careful with REO's. I have not come across one yet that is not overpriced by at least 25-35K. For instance in your numbers above, if you get it right at 50K and have to put any more than 20K into it, it is a loser deal because by the time you pay closing on the front, realtors commission on the back and also undervalue the property so it sales quick the numbers get real tight real quick.

Also, I have not met one REO assigned banker yet that is not absolutely CLUELESS as to what I just typed in the above paragraph.

I don't think you can legally assign an REO. I may be wrong on that though.

Congrats on getting started and keep it up!

Stan

If you cannot assign a deal (ie the bank won't allow it) you can try a couple different things....
1. Double Close - use the end buyers money to close on the deal and close with him instantly after. A title company can help you with this. As long as you are making $5k or more it is worth it, but there will be double closing costs so that can cut into your profit so more than $5k is most desirable.

2. As for a bird dog fee. See if the other investor is willing to pay you $1k or so for bringing the deal to you.

If you know of several other investors in the area that want more properties, find out what they want (location, price, #beds, #baths and parking). Work out a deal that they will pay you a fee for finding properties that me their requirements. Then go find it. It is a great way to build up some income for future deals and you'll learn a ton while you are looking!

I read somewhere on a forum, that you can Assign an REO. You need to attach a Addendum
to your contract. ON your Addendum, list who you want to Assign to. I may be wrong but
it is a possibility. I can't remember where I read that info., maybe someone else does.
Please research the subject further, if youre successful on this matter let us know.

George41

Any contract is assignable, however, sometimes Banks will refuse to accept your offer if you try to assign it. Some will even make you sign an addendum that says you will not assign.

If the bank with let you assign - great...Have at it.

If the bank will not use the above suggested methods.

On most bank owned property there will be a non assignable clause in the contract preventing you from assigning it to a 3rd party. One option to look into is using hard money or transactional funding to flip the property. That will get around the non assignable clause in the banks contract.

I agree with Chip an Andrea Were their is a will their is a way. I did win the battle with the title company.

randy

Thank you everyone for your help and i will let you know what the bank says about the assignment.

how does a bank look at loaning money when its for an investment vs. personal loan? I tried to call a loan officer today without any luck about this question. For example right now I wouldn't get a personal loan cause of debt to income ratio but what if I could show an investment with positive cash flow.

For investment deals, it is best to look for smaller banks. There are a ton of threads out there about finding a bank.

We have a small local bank here that loans on the value of the deal, but they have strict requirements.
1. The they will only loan up to 60% of the Appraised Value. Well, 60% doesn't sound great, but if you get a great deal, than you could have it all on the loan
2. If we are holding the deal as a rental it has to be at a monthly profit ratio of 1.35. For example if all our expenses are $1000 each month, then we have to bring in at least $1350 in rent each month to meet the ratio.

It is hard work finding a bank we had to call almost 30 banks before we found one that would work with us.

Type Banks into the seach box and you'll find several great threads on finding the right bank for you.