OfflineI read (or heard somewhere) that banks will only allow the person whose name is on the contract to purchase their homes (REO properties). This means that assignments will not work with banks. (This is what I have heard. I don't have firsthand knowledge of it.)
That being said, there are a lot of foreclosures out there to make offers on and I am wondering if they can be wholesaled despite the fact that they cannot be assigned. Will a double close work for REO properties? What about for HomePath and HUD properties?
Are there going to be any issues with seasoning?
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REALTOR
Real Estate One
Grand Rapids, MI
Thanks for the help. How does one make a trust?
REALTOR
Real Estate One
Grand Rapids, MI
The first thing to do is find the killer deal, get it under contract and have a cash buyer in place to do the deal. This is the hard part. Trusts, LLCs, double closings, contracts etc. etc. are the easy part!
We double close REOs all the time if there is no seasoning issue. If there is, you can do the LLC or Trust strategy. You can even put a trusted buyer directly on the purchase agreement if you have everything set up in advance.
When dealing directly with distressed, motivated sellers(no agent or lender involved) you don't have to deal with theses issues, you can do contract assignments with these sellers. Easy as pie!! This goes back to my opening statement also!
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I'm trying like heck to wrap my mind around this concept. REO properties do sound like something i would be interested in pursuing to assign. So can someone tell me, if a bank does not accept an assignment clause, I essentially am purchasing a property for the sake of a transaction only to turn it over to my end buyer. I'm confused where the funds need to come in on my part, is this the same as transactional funding?? just for the "transaction"
I'm trying to plug along but i get so confused!! LOL.