How do I lock up and assign a foreclosure!!! HELP!!!!

Fill out your bio on your home page. When you say "foreclosure" I assume you are talking about bank owned properties. REOs.
1. REOs are NOT assignable 99% of the time.
2. Is your "end buyer" a cash investor type buyer?
3. If tour buyer needs financing and are an owner/occ buyer this strategy usually won't work.
4. If they are a cash buyer, you can offer in a trust or LLC and sell the "ownership" of the trust or LLC to your buyer.
5. You will need POF to make the offer in most cases.
6. You will need earnest money 24 to 48 hours after your offer is accepted in most cases.

Michael

Ditto.......

Carol Stinson has a great breakdown of just how to do a trust for REO's and foreclosures, as well as, short sales should you want to bother with those. The rest is explained above!

Take title in a trust or LLC, and check for any Deed Restrictions on the property that could encumber the deal.

With cash offers, REOs sometimes require 10% EMD.

If the end-buyer needs financing, your trust or LLC will probably have to hold title for a specified amt of time to meet lender "seasoning" requirements.

Liz

When wholesaling using a trust or LLC sale you only have a single closing thus no worry about deed restrictions. That's one of the advantages of the trust or LLC strategy.

Michael

Good to be reminded of how to wholesale foreclosures. Thx.

Right, Michael. The LLC & trust transfer definitely circumvents a lot of those double-close issues.

But if the seller has a restriction on the amount the buyer can resell it for within a certain period after closing, could be an issue when wholesaling. Thx.

Liz

You would create an LLC and would get the property under contract with the LLC, then you would just sell the LLC to your end buyer for a fee. Or you can create a land trust to get the property and then just assign the land trust rights to your buyer. Google how to use a land trust when wholesaling.

When you sell the LLC or trust you are not reselling the property. There is only one close it is not a double close. The entity that made the original offer still buys the property at the first closing. For the original offer amount. Just the member or beneficiary changes. You can sell the entity for what ever you want! That is how you make your fee. You are not selling the property for any amount higher than the original purchase price! You are selling "ownership" of the entity that holds the property.

Michael

Be cause you are
Add us to your buyers and sellers list asap
Keep up the good work.

Thanks for all the input. When you guys say purchase the property under an LLC or trust. Exactly how do I create a trust to purchase properties and exactly what is a trust?

This is how I would try going about it... Please ANYONE correct me on anything that wouldn't work...

First, I would try selling the property to your buyer before submitting the offer. Show him the numbers and how good of a deal it is!! HOWEVER.... DO NOT tell him the address!!!!!!
Next, after you get him to agree to pursue and purchase it... Have him sign a contract saying that he is going to purchase it and that he IS going to pay you your "finders fee"... Also, make sure the contract states that he will supply ALL required documents/monies and that the offer will be submitted under his name.
Last you would submit the offer, hopefully get it accepted (or re-negotiate with the buyer if needed)...

Last... once the offer is accepted, you take everything required for closing and let the buyer and the agent/bank finish closing the deal...

I know it is very risky... BUT, if it would work... why not give it a shot??

without having the address and looking at the property first... when you wholesale, you put the property under contract first, then you 'assign' to a buyer. When you do a wholesale with a trust or LLC, you don't 'assign' the property; in a trust, you name your buyer as the beneficiary; with an LLC, you remove your name as a member, and add your buyer. If you have never opened an LLC or a trust you should let your re attorney do it for you, or go to legalzoom.com