you can flip REO's, but you have to use other strategies like land trusts, double closings, etc. Most banks will not accept and/or assigns on the purchase agreement.
Banks don't like the idea of the contract being flipped -- as it brings in another party .. You have to remember the property you are buying is already a loss to them and that puts them ( bank ) on the defensive.
The best way around it is the double close. You buy from the bank and then resell immediately to another investor..
That is what I'am trying to do now, I already have a trust in place. I know about the double closing, but not really about land trust. Can someone tell me the difference.
__________________
Wilnise
Realtor / Investor
Matt. 6:33 "Seek first the kingdom of God and his righteousness, and all these things shall be added to You." Matt. 16:26 "For what profit will it be for a man to gain the whole world, and lose his own soul." If the first two verses are true for you, Always remenber Phil. 4:13 "I can do all things through Christ who strenghtens me." Promise from God, Psalm. 60:12 "With God's help we will do mighty things."
even need to use the land trust. Make it easy. When your offer is accepted and the bank sends you their paperwork add "exact vesting to be determined at closing" This will allow you to put title in your end buyer's name.
I have done 3 double closing this year on REO's so far and everything worked out well. It's great if you can have one title company control both deals.
__________________
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I want to know more about this "vesting to be determined". I understand what it is for, and what it means. I have not put an offer on a REO property yet, let alone had one accepted. Do you put in an offer with a purchase and sale agreement with my name, (no and/or assigns), and then the bank will send over their paperwork, contingencies, etc. and that is where I would put the "vesting to be determined at closing"? Where in their paperwork would I put it? I am very curious to this because I am scared to do a double closing. I have not completed a deal yet so I can't risk being stuck with a property. I don't trust my buyers enough to do one yet and that is why I would like to go this route. Any and all information (details please, I am slow) would be great appreciated. Thanks for the information thus far.
Richard
Bothell, WA
__________________
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Can anyone help with the question above? Just checking in.
Richard
Bothell, WA
__________________
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Thank you. To be clear I put my initial offer in with just my name only correct? Then when they send their "packet of information" then that is where I would be "exact vesting to be determined at closing" right? Again I am slower than the norm so I need to double check. Are there any responses that the bank might ask or rebuttle against this? For instance would they be "why don't you know what you want it under as right now?" Then I can say I may purchase it under my LLC, or my personal name or whatever. Any responses to those kind of scenarios are priceless and very important so any more information is anxiously awaiting. Thanks again.
Richard
Bothell, WA
__________________
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Hi everyone- I have not been on here in a while but I have a question, we are running into a problem when we are fixing and flipping homes with the bank putting in the addendums that we cannot flip the home for more than a certain percent within the first 90 days. How can we get around this? This isn't the same as the 90 day seasoning rule, this is them telling you that you can only flip it for a certain amount not to exceed _______. I know there is a way around it, because there are several investors that are flipping them for more than the 15%-20% profit that the banks are trying to hold us to. Does anyone know about this, or if it is only on homes that you purchase on the MLS? It seems that the ones purchase at the auction don't have this in their closing docs.
First, you will need to buy the property from the bank as a stand alone transaction. Transactional funding allows this to occur. The bank really has no legal leg to stand on if they try to block the deal from happening.
As long as you are able to pay the bank as agreed, and you are doing things above board and legal whatever occurs after that is none of their concern.
The problem is that you are signing an addendum that agrees to this. If you don't the deal is done. Fannie Mae and most banks are doing this now. I had one that put it in one of the addendums for a client of mine, that stated, if they find out that he flipped it for more, he will pay a $5000 fine!
I am still having issues with this again. Is there anyone on here that does fix and flips, that can help me out with this. I have until Monday to figure this out. Please help!
you use "exact vesting to be determined at closing" You never close on the property. You take your fee from your end buyer and let them close in their company's name. Now the 90 day issue is their problem. Another method is to buy the property in an LLC and then sell the LLC to the end buyer.
Also,you can add your own stuff to the addendum. You don't have to agree with everything the bank is stating. If you're paying cash then tell your agent no way to the 90 day flip. You're paying cash and you will do what you want with the property. If the bank comes back with then we won't accept the offer then hit them up with the exact vesting clause.
Offline
you can flip REO's, but you have to use other strategies like land trusts, double closings, etc. Most banks will not accept and/or assigns on the purchase agreement.
KimmyJ
Press on...
I appreciate it.
Kimmy J you are correct !!
Banks don't like the idea of the contract being flipped -- as it brings in another party .. You have to remember the property you are buying is already a loss to them and that puts them ( bank ) on the defensive.
The best way around it is the double close. You buy from the bank and then resell immediately to another investor..
Randy
hello
That is what I'am trying to do now, I already have a trust in place. I know about the double closing, but not really about land trust. Can someone tell me the difference.
Wilnise
Realtor / Investor
Matt. 6:33 "Seek first the kingdom of God and his righteousness, and all these things shall be added to You." Matt. 16:26 "For what profit will it be for a man to gain the whole world, and lose his own soul." If the first two verses are true for you, Always remenber Phil. 4:13 "I can do all things through Christ who strenghtens me." Promise from God, Psalm. 60:12 "With God's help we will do mighty things."
http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...
Read this that Kimmy posted some time back. She pretty well explains the process.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
What everyone said is good advice.
accept the Land Trust? Also, on the double closing with the bank, can I still sign the contract with my name/and or assign if it isn't the land trust?
Thanks for advice.
There are banks that will accept and or assing...I would use HML or PML too have that extra day or 1 week to find a end buyer
even need to use the land trust. Make it easy. When your offer is accepted and the bank sends you their paperwork add "exact vesting to be determined at closing" This will allow you to put title in your end buyer's name.
KimmyJ
Press on...
www.tagteampropertiesllc.com
I have done 3 double closing this year on REO's so far and everything worked out well. It's great if you can have one title company control both deals.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
company is key to getting your wholesale deals done.
KimmyJ
Press on...
www.tagteampropertiesllc.com
I want to know more about this "vesting to be determined". I understand what it is for, and what it means. I have not put an offer on a REO property yet, let alone had one accepted. Do you put in an offer with a purchase and sale agreement with my name, (no and/or assigns), and then the bank will send over their paperwork, contingencies, etc. and that is where I would put the "vesting to be determined at closing"? Where in their paperwork would I put it? I am very curious to this because I am scared to do a double closing. I have not completed a deal yet so I can't risk being stuck with a property. I don't trust my buyers enough to do one yet and that is why I would like to go this route. Any and all information (details please, I am slow) would be great appreciated. Thanks for the information thus far.
Richard
Bothell, WA
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Can anyone help with the question above? Just checking in.
Richard
Bothell, WA
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
You add it when you receive the addendum with all the banks stuff on it.
KimmyJ
Press on...
Thank you. To be clear I put my initial offer in with just my name only correct? Then when they send their "packet of information" then that is where I would be "exact vesting to be determined at closing" right? Again I am slower than the norm so I need to double check. Are there any responses that the bank might ask or rebuttle against this? For instance would they be "why don't you know what you want it under as right now?" Then I can say I may purchase it under my LLC, or my personal name or whatever. Any responses to those kind of scenarios are priceless and very important so any more information is anxiously awaiting. Thanks again.
Richard
Bothell, WA
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Hi everyone- I have not been on here in a while but I have a question, we are running into a problem when we are fixing and flipping homes with the bank putting in the addendums that we cannot flip the home for more than a certain percent within the first 90 days. How can we get around this? This isn't the same as the 90 day seasoning rule, this is them telling you that you can only flip it for a certain amount not to exceed _______. I know there is a way around it, because there are several investors that are flipping them for more than the 15%-20% profit that the banks are trying to hold us to. Does anyone know about this, or if it is only on homes that you purchase on the MLS? It seems that the ones purchase at the auction don't have this in their closing docs.
Any help would be much appreciated!!
It's good to be back.....
First, you will need to buy the property from the bank as a stand alone transaction. Transactional funding allows this to occur. The bank really has no legal leg to stand on if they try to block the deal from happening.
As long as you are able to pay the bank as agreed, and you are doing things above board and legal whatever occurs after that is none of their concern.
The problem is that you are signing an addendum that agrees to this. If you don't the deal is done. Fannie Mae and most banks are doing this now. I had one that put it in one of the addendums for a client of mine, that stated, if they find out that he flipped it for more, he will pay a $5000 fine!
Hi all,
I am still having issues with this again. Is there anyone on here that does fix and flips, that can help me out with this. I have until Monday to figure this out. Please help!
Thank you!
you use "exact vesting to be determined at closing" You never close on the property. You take your fee from your end buyer and let them close in their company's name. Now the 90 day issue is their problem. Another method is to buy the property in an LLC and then sell the LLC to the end buyer.
KimmyJ
Press on...
Also,you can add your own stuff to the addendum. You don't have to agree with everything the bank is stating. If you're paying cash then tell your agent no way to the 90 day flip. You're paying cash and you will do what you want with the property. If the bank comes back with then we won't accept the offer then hit them up with the exact vesting clause.
KimmyJ
Press on...