How Difficult To Flip REO Prop?
I'm new to investing but have been stuyding for awhile now. I have a neighbor who lost his house in foreclosure. It's a 2200 sf house on 5 ac. built in 1995. Has been on the market for over 60 days. It needs about 3-5k of repairs to make it "move in" ready. Lots of people have looked but takers yet. The house is at the end of a 2 mile gravel road which turns people off. I'm wondering if there is a way for me to tie this house up and sell it to an investor without having to put more than a earnest money dep. on the prop and do a double closing. Also, how can I find out how much the bank is into for so I can make a decent offer. They've listed a house with a realtor and have dropped the price from 252,900 to 244, 900 in the last week. Guy from CA. came up here to look at the house to see why it hasn't sold so I think the bank is wanting to move it.
Bank REO dept. will not let you assign the contract to another buyer. You will need to come up with a creative way to sell it to the ultimate buyer with minimal cost & risk to yourself if you submit an offer .
would a double close work?
A double close might work IF you actually funded the deal, and then closed with your buyer. The lender will not likely let you use your buyers funding pay for your close.
Jeff
Thanks for the excellent feedback. It's what I was thinking but thought maybe there was a way around this. This house is just sitting there and I drive by every day thinking "man, I wish there was a way to put a deal together on this one!" Any other creative ideas of how to make some $$$ off this? Thanks, Dennis.
If there's no way, see if you can get a finder's fee from someone.