Does Anyone Have Advice For Wholesaling REOs?

To be specific, I recently experienced having a lead where she said she was directly with the lender who had the REOs, bulk amount minimum $10 million. I brought in a buyer who was a syndication and said they dealt only with the lender. I was led to believe by my lead that she was the lender. (She would not reveal lender name and we signed NCND) I gave my buyer the contact info for my lender lead, and buyer said this is not a direct lender, but may consider working with her in the future.



Is there an art to this type of wholesaling? My Buyer is a highly respected syndication with 40 years experience and "has never been sued."



Any advice on this type of wholesaling is greatly appreciated.



Comments(7)

  • cjmazur27th August, 2008

    rehaber buys for 110K on assignable contract
    you buy from rehabber on assignable contract for 120K, rehabber pockets 10K
    You sell to your buyer for 135K on assignable contract, you pocket 15K

    I would use a standard purchase and sale agreement or spend a couple 100 and consult an attorney.[ Edited by cjmazur on Date 08/27/2008 ]

  • minhpho27th August, 2008

    Thanks for the reponse cjmazur. What if his contract is not assignable? Is there a way to make this work?

    Thanks,
    Minh

  • minhpho27th August, 2008

    Thanks again. I will look into the triple close.

    Minh

  • cjmazur30th August, 2008

    did you have a non-disclosure/non-circumvent w/ the guy?

    buying sight unseen is outrageious.

  • bargain7628th August, 2008

    Besides location, CONDITION is an extreme variable.

    How can anyone determine value without putting their own experienced eyeball on the property?

    Anyone who puts a $5K non-refundable deposit down without really inspect the property....has a good chance of losing their money.

  • ryand1st September, 2008

    I agree. The best way to get an accurate value is to know your own market and research properties in your area until you are blue in the face. I prefer to actually drive by comparable properties because internet pics and be very deceiving. be careful
    -Ryan Dehler

  • cjmazur5th September, 2008

    there will be some disaster money available I bet.

    cheap loans/rehab money

    I doubt any thing as big as go-zone.

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