Flipping A REO??
If you are going to buy a property that has been foreclosed from the bank, assuming at a wholesale price. Can you actually assign the contract to another buyer? 
If you are going to buy a property that has been foreclosed from the bank, assuming at a wholesale price. Can you actually assign the contract to another buyer?
With Fannie-Maie -- no; to protect their interests, they make you sign an addendum in addition to the purchase contract stating that BANK can cancel the contract if you (buyer A) assigns the contract to another (buyer B.)
Also, the addendum cuts out the commission for R.E. agents buying the REO for themselves or spouses.[ Edited by rei_cat on Date 08/28/2003 ]
So you are saying you can't flip a REO. Is the only way to make $ from one is to buy wholesale and sell retail? B/C I have access to info about REO's from banks in the area that haven't been touched, how can these resources benefit me, since I don't have the funds to actually purchase the properties? I just want to put them under contract and assign them.
Quote:
On 2003-08-28 00:55, livtrade wrote:
So you are saying you can't flip a REO..... since I don't have the funds to actually purchase the properties? I just want to put them under contract and assign them.
Only Fannie Mae -- you have to check out the other banks and ask them specifically about the possibility of assignments.
If you don't have the funds, then you may want to consider hooking up with an investor that work in your area who will partner with you (BIRDDOG) until you can earn enough to purchase a REO on your own. You help them find the deals, then you can negotiate your fee.
There are ways to find funds -- just scour this site, you'll find the ideas.
Good luck
<IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by rei_cat on Date 08/28/2003 ]