Flip This Wholesaler

7/2/09

Sooooo....I got a deal under contract and sold yesterday! This is a different deal than the Hooker House I wrote about last time, which I am going to pass on.

I'm pretty sure this was the fastest I've ever sold a deal. And it was all done via text.

Here's how it went down....

2:32 pm- Phone call from listing agent of a property I offered on this past Monday. It went to highest and best, and I offered 21k (10k over list). She said there were 20 offers on the property, and they had it narrowed down to 3, one of which was mine. She told me if I verbally agreed to their new terms, she could get my offer pushed through. They wanted 10% in escrow instead of the 1k I offered, and everything else was the same. I agreed to the new terms.

Oh, and she also wanted to verify that I was giving her both sides of the commission, including the 3k bonus to the selling agent. I'm sure this had nothing to do with me getting the offer accepted.

5:07 pm- Email from listing agent telling me they are taking my offer, and that I need to sign bank's addendum and return it within 48 hours, along with earnest deposit.

5:50 pm- After going to look at the house one more time, sent the following text message to my favorite buyer: "Hey Favorite Buyer, I just got a house you are going to like. 123 Main Street. 1200 sf frame, carport, fireplace, comes with extra lot. Nice street. Lock box 8590. Asking 29k."

6:35 pm- Text from Favorite Buyer: "20k."

6:36pm- Text to Favorite Buyer: "27k."

6:36 pm- Text from FB: "24k."

6:38 pm- Text to FB: "26k. Work with me here."

6:39 pm- Text from FB: "OK. 26k."

6:39 pm- Text to FB: "Cool. It's scheduled to close on the 24th. That OK?"

6:40 pm- Text from FB: "OK."

6:42 pm- Text to FB: "If you're around this weekend, we can meet to sign everything. Just let me know when."

6:46 pm- Text from FB: "OK, no problem."

And there you have it.

I probably could have found a buyer for more than 26k, but I'm always one to take the quick nickel, especially if it is from one of my solid buyers. This will be the 4th house I've sold to this guy this year, and the 6th since last summer.

Just to give you a little insight as to how important it is to make clean offers when you're bidding on a hot REO property..... the agent told me there was an offer of 30k on the table, but they wanted a 7 day inspection period. My offer was 9k less, but had zero contingencies.

It also helps to bribe the agent by giving them both sides of the commission. Especially when there is a 3k bonus being offered..

OK, Gotta run..

Have a safe and fun-filled 4th of July!



P.S.
I just added Patrick and Trevor's Private Money Blueprint to my list of recommended courses. If you have time this weekend, check out the free videos- there's several hours of quality content for your viewing pleasure...

6/3/2009

So far so good with my Power of Less Challenge. It's day 3, and I've been up at 6am all 3 days, and in the pool swimming laps by 6:30. I wasn't aware of it until yesterday, but apparently Michael Phelps lives in my building, and trains in the pool on the 8th floor. OK, not really, but there's a guy who looks just like him who was at the pool the same time as I was yesterday, and he was swimming up a storm and making me feel like a total jackass. I may as well have been dog paddling... he was swimming 2.5 laps to every one that I swam. It was quite embarrassing, but I ended up getting a phenomenal workout because I was trying extra hard to keep up with him. I can barely move my arms today, which is a good thing...

On the real estate front, things are going well. For the most part. The short sale that I got under contract a few weeks ago is scheduled to close next Friday. The deal that has now been extended 3 times looks like it is going to crash and burn. The new extension goes until the 10th (next Wednesday), but I don't have any confidence in the bank signing the closing documents. DB is the buyer on this one, and he said that if it isn't ready to go by the 10th, he is going to pass, and I can't say I blame him. It's been over six weeks now since we signed the initial contract. Also, there is a leak in the roof of this property, and after all of the rain we got these past few weeks, there is quite a bit more damage (and mold) than there was a month ago. The bank actually sent someone out to cover the roof with a tarp last week (after I called and complained), but the damage has already been done. I tried to get them to knock off a few grand to compensate, but, being the ignorant assholes that they are, they wouldn't budge.

I sent an email off yesterday to both the listing agent and the title company letting them know that I am going to pass on this deal if it doesn't get closed on or before the 10th. Both of them forwarded it to the bank's asset manager, who, apparently doesn't give a crap. If they aren't able to get it done by the 10th, I'm going to try one more time to get them to knock several grand off the purchase price. If they say no, I'm going to have to walk. Nothing like having a payday flushed down the toilet because of someone else's incompetence. Yay!

Other than that, I've been busy making offers and looking for buyers. Gotta keep the funnel full..

Gotta run- later alligators!

3/10/09

Well, I'm supposed to have a closing today, but the bank's title company, of course, is not ready. Apparently the lien search is not in yet, which is what happens when you don't start working on a file until 2 days before closing. Who knew?

So, today my job is to harass the ever-loving shit out of them until they get so sick of hearing my voice that they do whatever is necessary to get the search done and the docs sent out. You might think this is being excessive, but if you don't stay on top of the closer, your file will just sit and collect dust with all of the others. I also told them that I am going out of the country on Thursday (not Friday- if you tell them Friday, they won't have it ready until Monday. If you're lucky).

There's a small chance that it might close today, if they get the search back early enough. My title company is ready to go (I heart Peer Title), and Lee's buyers are ready to go. we're just waiting on the bank...

I've got a whole mess of offers out there right now, and should be getting some counters back today. I've been staying consistent with making 3 offers/day. I try to get out and look at 3 houses first thing in the morning (after traffic dies down), then come back home and write the offers up. My goal is to look at 3 houses, make 3 offers, and run 3.5 miles by noon every day. I feel like a rock star when I do this.

That's all I've got for today.

Happy Tuesday, Blogosphere!

3/3/2009

I'm seriously ready to do some damage this month!

Since my trip to CR, I feel refreshed, motivated, and ready to knock this year out of the ballpark.

Being a student of Steve Cook, one of things that he really pushes all of us to do is to have a vision of what we want our lives to look like. He encourages us to work diligently on our vision, and has been telling me for the last year, that once I get clear on exactly what I want my life to look like, things will just start to fall into place. One of my challenges that I set for myself to accomplish before our next Flip Vips retreat in April, was to really work on my vision, because up until recently, I had kind of blown this off. I've been spending a lot of time this year writing out my goals, and I can tell you it makes a huge difference when you get it all out on paper and start to really focus on what it is that you want. It's much easier to get where you want to be if you know exactly where you're going, you know? I know that may sound cliché , but it's true. For the last month or so, I've been working on my vision- short term and long term, and I've been forcing myself to review my goals first thing in the morning, and right before I go to bed. I've tried to do this before, but it usually only lasts a week or so, and then I stop doing it. This time (with the help of an accountability partner), I've managed to stick to it every single day, and it has already made a HUGE impact on my focus and productivity. I haven't ever felt this focused and in control. Ever. Needless to say, it's a really good feeling..

On to real estate...

The deal that I got under contract right before I left for CR is officially sold. Lee got the contract and deposit locked up yesterday afternoon. I think he ended up selling it for 31k, and I have it under contract for 22k, so that is good news.

Yesterday I went and looked at 5 houses, but didn't get a chance to put any offers in, so that's what I'll be doing as soon as I'm done writing this post. After that, I'm heading out to look at 3 more houses that I'll be offering on later today, and am also going to put some signs out for a few properties that my buddies have under contract. Need to get my phone ringing again.

That's about all I've got for now. I've got a busy day ahead of me, so I gotta run....

P.S.
Jessi- good luck with your deal today. :)

1/27/2009

Well, I finally sold the house I got for 16k! I was starting to panic a little bit, as I am used to already having my deals sold by the time everything is signed with the bank. I ended up getting 20k for it from my sans ID buyer (I'll refer to him as SIB from this point forward). I could have just sold this to him 2 weeks ago, but I wanted to flush out some new buyers (which I did), so I decided to market the hell out of it for awhile before I resorted to the ace in the hole.

It looks like 2 of the 4 deals I'm working are going to close this week. One tomorrow, and the other Thursday or Friday. There is a third that is supposed to close Friday, but it doesn't look like the bank's title company is going to have everything ready. Then the one I just sold to SIB is scheduled for Feb 10th.

Now it's time to get some more under contract.... I went and looked at 10 houses yesterday, and by the time I got back home to write up offers, 4 of them were already pending. I don't know if it's just me, but it seems like I have a heck of a lot more competition all of a sudden. I went to make an offer on a property last week that had just been listed, and the listing agent told me he already had FIFTEEN offers on it. Crazy. There's still plenty enough to go around, and to be honest, I kind of like it. Nothing beats a little healthy competition, although, I could do without the assholes who steal keys out of lockboxes so no one else can go inside. Man, that pisses me off. Dirty-pool-playin mother fu*k*#s.

Well, that's all I've got for now. My Dad is flying in today at 3pm for a week long visit... I think were going to head out to Clearwater beach for some cold beer and She-Crab soup at Frenchy's. Yummmm.

Go make some offers, y'all!

P.S.
I'm listening to Nate's coaching call with Steve right now. Good stuff.

P.P.S
Does anybody know if it's possible to watch the Australian Open matches online (free or not, doesn't matter)? I don't have cable and I don't want to miss the rest of the matches.

12/29/2008

I spent most of the day driving around the hood looking at houses. I put in a bunch of offers this afternoon, and hope to get something under contract by the end of the week. My California investor is going to be ready for another house shortly, and I want to make sure I have something to sell him when he's ready. Also, my sans-ID buyer is going to be back in town next week, and he wants more houses, too. Oh, and McHotterson called me while I was in St. Louis and told me he is looking for more deals as well. January could turn out to be quite profitable if I play my cards right...

I'm probably not going to get a whole lot accomplished tomorrow, as I'll be entertaining some out of towners.. I'm making a big batch of margaritas, and we're going to head down to the 8th floor terrace and grill some brats and hamburgers and such. Maybe even swim if it's nice out. Margaritas + grilling out + swimming in the sunshine= Good Times!

Adios, Amigos!

P.S.
I recently signed up on Facebook, and kinda wish I hadn't. I've spent entirely too much time over there the last couple of days screwing around, and also trying to get Roger Federer to add me as a contact..... Wait 'til he finds out how persistent I am... Hehehe.


Meow.

10/26/2008

Geeze, sorry for not posting very often lately- I've been a busy little bee....

*The "Stacy" deal closed last Thursday. Yay! Guess how much I made? Go on, guess..... Give up? Well, my 7k payday turned into a whopping ONE HUNDRED AND ONE DOLLARS AND FIFTY CENTS ($101.50)!!! HAHAHAHAHAHAHA!! Hilarious, ain't it? Long story short (and then I don't ever want to talk about this stupid deal again), the buyer couldn't get his financing ready in time, so I found a buyer to basically bail me out of the deal for my contract price + $500- closing costs, which left me with a little over a hundred bucks. The original buyer's hard money "should" be ready to go this week, so the guy that bought it from me is going to sell it to my original buyer, and we're going to split the profits. I have no faith whatsoever in that actually happening, and I have officially written this deal off. If it actually ends up working out, it will be like bonus money, because I'm certainly not counting on it. The only good thing to come out of this whole debacle is that the deal actually did get to closing and I didn't look like a total moron like I would have had it not closed. After harassing the title company and listing agent for 3 months, it would have been really not-good for me to not close. Also, this broker has about 9 million listings, and is one of the last people I would want to piss off.

* I got another REO under contract last week, found a buyer for it the next day, and just met him this afternoon to sign the contract and get a deposit. So, now I've got 3 under contract, and will find out tomorrow about another 2 that I have offers on.

* I hit the freaking mother load with the buyer that I just met this afternoon. He was referred to me by one of my other buyers a few weeks ago. She told me that he owns a bunch of properties, but has been out of the game for several years, and now he wants to start buying again. She told me he has a money partner in CA that wants to spend a million dollars on single family houses in Tampa. When she told me this, I almost busted out laughing on the phone because I have heard this exact same story about five thousand times over the last year. It always turns out to be a bunch of bullshit, so I don't even get excited anymore. Well, anyway, she told me she was going to give him my number (the guy in Tampa, not the guy in CA), and that I should expect a call from him. He ended up calling me earlier this week, and he told me the same story about this guy in CA (who is his Dad's best friend that he has known his whole life and who is a multi-gazillionaire looking to invest in real estate now that the market has crashed). I gave him the address of one of the properties I was about to get under contract, and he called me back at the end of the day to tell me he would take it. At this point, I still thought he was full of shit, which I kind of think he picked up on, because he told me that he wanted me to call his money guy in CA and talk to him myself. Which I did. Twice. And as it turns out, this guy is the real deal, and this is the opportunity that I've been waiting for to come a' knockin on my door. So, I met the guy today to sign the contract and get his deposit, and we talked for awhile, and he is ready to go gangbusters buying houses, and he wants me to keep sending him deals until the cows come home. This is good news, people. This is really good news.

Gotta run.

¡Adios Amigos!

10/21/2008

Hi Everybody. Sorry for the lack of posting lately. It's been an interesting 2 weeks. I started getting some emails asking if I was dead or something, so I thought I would write a quick post to let you know that I am not dead.

In a nutshell.....

*The "Stacy" deal is still not closed. Actually it's supposed to close tomorrow but I still haven't figured out how that's going to happen. A miracle, perhaps. This deal officially takes the cake as the most horrible, awful, pain-in-my-ass-of a-deal I have ever done. Seriously, it just keeps dragging out, and just when I think it is going to work out....it doesn't. I HATE THIS DEAL WITH A BURNING PASSION. HATE. IT.

*I got two new REO deals under contract 2 Fridays ago and sold them both by the end of the weekend (still not sure how I pulled that off, but I did).

*May be getting another REO under contract tomorrow that I already have 2 buyers for. This will truly be a miracle if it works out as it was the easiest deal ever to get- just hanging out there on the mls waiting for someone to offer on it. "Pick Me! Pick Me!"

*Have had the most stressful month of my entire life. Well, except for last year at this time. I have gray hair now.

*I'm getting sick. This does not fit into my schedule so I am just going to pretend like I am not sick. I'll let you know how that works out.

*If you think there are no buyers out there, you need to pull yourself away from the TV and listen to someone who is out in the streets selling deals, right now, in this "crappy" market (that would be me). I went on a Ninja mission last week to find buyers. Put out 40 signs, and called every "for rent" sign in the city of Tampa. I am not kidding you when I say I have buyers lined up and waiting for me to find them deals. I am not blowing smoke up your ass, either. I swear to God, I have more buyers than I have houses to sell them, which is why I can not get sick right now. I NEED SOME MORE HOUSES! I have 10 to look at tomorrow, and I will be offering on every single one of them.

*I am getting a house from the bank for EIGHTEEN THOUSAND DOLLARS!! Can you believe that? I can not. It's in a crappy neighborhood, but only needs about 8k in work and will rent for $750. I had this house sold in one phone call. The guy I am selling it to says he wants to buy a house like this each week for the next year. He is a cash buyer. This makes me happy.

*I went to see the Rays game Sunday night and had seats right behind third base. Had a blast. I spent the last 15 minutes trying to post some pictures, but my computer is evil and will not let me, and I am all out of patience.

*Someone is blasting the Spice Girls from their balcony right now and I am about to go outside and assassinate them.

And, that's all she wrote.

Buenas nachos.

10/7/2008

Well, apparently, sending an addendum to the bank telling them you want 5k off the purchase price because you are tired of waiting on their slow-ass title company...is quite effective. Not so much effective in the way of actually getting a 5k discount, but effective in the way of getting the title company to FINALLY get everything wrapped up and ready to go. Amazing, isn't it? Also amazing, is the fact that I sent the addendum over to the listing agent on Friday afternoon, and then, like magic, they had the deed package at the title company on Monday morning. No joke. Usually it takes Litton at least five and a half years to get the deed signed and back to the title company once they get clear title. Seriously- it's like pulling teeth. So, anyway, after close to 3 months, I got the call from "Stacy" this afternoon telling me she finally got all of the documentation she needed, and we are now clear to close. I have not heard back yet as to whether the buyer will be ready to go Friday (that's when the bank wants to close), but he should be. I will worry about that tomorrow. For now, I'm just happy we have clear title and don't have to wait on "Stacy" any longer. Also, if the buyer's lender is not ready, I have access to the cash (not mine) to close this, so I am not really that worried about it. Well, I kind of am, but then I worry about pretty much everything.

I am still waiting to hear back about one of the offers I made last week and got a counter on. The bank is at 36k and I'm at 32k, and I'm not going any higher. At this point, I'm pretty sure that the agent is playing games with me and is just waiting around for more offers, but I'm not positive of that. I think I already have a buyer at 39k (maybe), so it would be nice to get this locked up tomorrow.

That's about all for now.

Peace out, homeys.

P.S.
"Stacy" is actually a really nice lady, and I take back calling her an asshole last week.

P.P.S.
Leigh, if you're reading this, thanks for listening to me vent. I appreciate it, and I took your advice, and you were right- things are looking up. Knock on wood...

10/5/2008

Well, they say that when it rains, it pours, and I gotta tell ya, there's a friggin' monsoon following me around lately. I can't really come up with an explanation of why everything is going wrong all at once right now. I don't remember breaking any mirrors lately or anything like that. Perhaps it happened while I was sleepwalking? Maybe, while I was sleepwalking, I broke a mirror after seeing a black cat run in front of me while I was opening an umbrella indoors and walking under a ladder with it. That makes sense.

Anyway, no new news on the "Stacy" deal. Well, except that the buyer's private money guy said he will only wait 2 more weeks and then he is pulling the plug. So, there's that extra bit of added stress to deal with, which is AWESOME. I sent in an addendum on Friday requesting that they lower the purchase price from 50k to 45k. I haven't heard back yet from the listing agent as to whether or not they are going to sign it, but I figured it was worth a shot. Of course we have to actually get clear title before any of that would even matter anyway, and I don't see that happening anytime in the near future, so, oh well.

I got an offer accepted Friday (yay!), and the numbers were really, really, good. This got me to thinking that perhaps I missed something when I went to check the house out. So, yesterday, after I almost ran out of gas in the hood, and then went to get money at an ATM machine at the gas station, and the machine ate my money and wouldn't give it back (seriously) ..... after that, I decided to drive on over to my new "deal" just to check it out again, because something was telling me that this deal was just too good to be sitting on the market at this price for more than a day or two. So I get there and check out the inside, and then go out back, and see this for the first time:



Yaaay- a sinkhole!! Woohoo!

I suppose I could look on the bright side of this, which is that I was about to blanket the area with 30 or so handwritten signs, and that would have sucked. Also, sending investors to a house without telling them it may or may not be swallowed into the Earth by the time they get there, would make me look like a complete ass. How do you like that for positive thinking?

Oh, I also got a counter on Friday on a house listed for 52k, I offered 30k, and they came back at 36k. This could be good, but the house is in pretty bad shape, so I'm not sure what I'm going to do. I'm going to bring my friend Dave by there later today to get his opinion on it. I think I probably need to get it in the low 30's (if you can believe that- it's a 4/2 concrete block home), but I'm not sure. I need a second opinion. I've closed several deals with this listing agent, and he seems to put in a good word for me to the asset managers, because I always get really good counters on his properties.......so, I want to be extra sure I can get this deal closed before I put it under contract.

And, that's all I've got, folks.

Let's hope this week brings some good news.

9/23/2008

I've been wondering what would happen if I got an REO under contract, and then never followed up (babysat) with the bank's title company or the listing agent like I normally do. I kinda figured it would go something something like this........









Yes, that's right- NOTHING happens!! Nada. The Deal From Hell was supposed to close a week ago today, and I have not heard 1 peep from either the listing agent, or the bank's title company. No extension of contract, no explanation of why we aren't closing on time....NOTHING. This, for once, is a good thing, because my buyer (who is a liar, btw), is still scrambling around trying to put the money together for the down payment (that she swore up and down to me 5 million times she had) on her hard money loan. I'm just really curious to see how this turns out. Technically, I could just call up the listing agent and the title company, and tell them I want my deposit back and am not interested in buying this property anymore. We are out of contract, after all.

The other deal that was supposed to close yesterday is still up in the air. Apparently there's still one lien hanging around that should have been wiped out in the foreclosure, but wasn't, so they may or may not have to start the whole process over again. Or something like that. This may or may not take a really long time. No one knows. No one cares. Well, except for me, because I like to get PAID. I got this property under contract in July, btw, and have a 5k deposit just sitting there at the title company, which makes me extra irritated.

I've got a whole mess of offers out there right now, so I'm fully expecting to get another one under contract by the end of this month. I'm making my offers lower and lower these days. Seems that a lot of the financial institutions are in a bit of a pickle right now, so I'd like to take full advantage of the situation. Hehe.

Have a fantastic Tuesday!

P.S.
I was looking through the recent sales on the mls last night, and saw a HUD property that was listed for 75k, and sold for 38k. Not bad, eh? You can't get deals like that, though, if you aren't making OFFERS!! So get on out there and make some offers, people!

P.P.S
I guarantee you right after I post this, I'll get a call from the listing agent of the Deal From Hell, telling me they want to close TODAY. Bastards.

9/2/2008

Well, I'm pleased to announce that my team came in first place at the 1st Annual Labor Day Cornhole Tournament! I snapped some pictures of the festivities for you....

The competition.....




Cornhole in action


Behold......the Champions..


On top of that...the love of my life just secured his spot in the quarterfinals of the US Open! He's flying me out tomorrow so I can be there to cheer him on for the rest of the competition.

And, in other news, I got a fantastic counter offer today on an REO that I offered on last week. This one was listed @ 90k, I offered 55k, and they dropped down to 63k right off the bat. I countered back at 57k earlier today, and am waiting to hear back from the bank. I think I can get between 65-69k for this one. Keeping my fingers crossed....

¡Adios Amigos!

8/21/2008

So, I've decided to try a new tactic to get the bank's title companies to get my deals closed on time: BRIBERY.

I'm going to try it out on both of the deals I have going right now and see what happens. Once the file gets assigned to a processor, when I call to introduce myself, I'm going to tell them I pay $200 if the deal gets closed on time. I think that should be incentive enough to get my deals pushed to the front of the line- don't you think?

I'll let you know how it goes over.....

Roger Dodger, 10-4, Over and Out.

P.S.
Let's keep this strategy on the DL. Wink wink.

7/18/2008

Well, the deal I have with McHotterson that is supposed to close on the 24th, is most likely not going to close on the 24th. Even though I get to pick my own title company, the bank still has their (incompetent) title company run a lien search. I really don't even understand it at all, to be quite honest with you. My title company already did the title work and is ready to close, but I guess I am still at the mercy of Watson fucking Title. I really hate them, and the lady I spoke to today deserves to be punched in the face for how RUDE she was to me. I'm not kidding, this lady was such an asshole, I almost hung up on her. The lady handling the file at my title company also spoke to her and told me she bit her head off when she tried to get a closing date out of her. They haven't even ordered the lien search yet, which takes them 5-10 days, so who knows if we will even get this closed this month. McHotterson ain't gonna be too happy, especially since he is leaving the country for a month the first week of August, and I already told him we could most likely close it early. Dang.

Yesterday I had a little get together with a bunch of local wholesalers. I won lunch for 15 people at the Thai restaurant behind where I live, so I thought it would be a good opportunity to do some networking. Actually, it wasn't really a "free" lunch, as we had to sit through a presentation by a financial planner, and then offer up our phone numbers and email addresses. A few hours after the lunch I got a call from the guy who did the presentation, and got trapped on the phone with him for 15 minutes, and somehow suckered into a meeting with him next week. I should have just told him I wasn't interested, but I'm really bad at rejecting people face to face (or on the phone). Also, I felt sorry for this guy, as he seemed really uncomfortable giving the presentation, and I kind of felt like I owed him something since he paid for lunch. Yes, I know, I am a big fat SUCKER.

A friend of mine called me a little bit ago and told me to go out on my balcony and check out the moon. This picture doesn't really do it justice, but it was pretty cool in person- all yellow and glow-y......



Happy Friday!

6/26/2007

I get quite a few emails from readers asking questions about wholesaling REOs. One of these days, I will put up a FAQ section on this blog, but until then, I thought I would start posting a few of the more commonly asked questions in case there are others out there who might be wondering the same thing.

So, here we go..

Hi Steph,

My name is Frank from NJ, and I am new to wholesaling . I have some short sale , and wholesale training but still looking for the first deal. I read about your transaction on reibrain.com and was just curious. I have asked a few investors in forums about wholesaling reo's. I have so many in my area and would really love to be able to wholesale the ones I find to be good deals. Anyway from what they have told me lenders will not approve of assignment contracts. So basically I would have to buy the house and then find an end buyer like one of my investors and do a double close . I really would rather flip the contract then put out my money first as you can understand. Can you give me any tips as to how you are assigning these reo properties without any problems from the lender? Continued good luck steph and thanks in advance.


Hi Frank,

You are correct in that (most) banks will not let you assign REOs. There are many ways to get around this, though, and still be able to wholesale them. What I am doing is using a simultaneous close. Basically, the closing between me and the bank and then between my buyer and me takes place at the same time, and both transactions are funded with my buyer's funds, so I don't have to come to the table with any money. Many title companies will not do this, but some will. What I would do is find the active wholesalers in your area and ask them who they are using as a title company. That is how I found mine.

You can also buy the property in an LLC or a land trust, and then sell your rights to your buyer at closing. I have never used this technique, although, this is the method my mentor, Steve Cook, teaches. Here is an article written by Steve that explains it in greater detail......

Another way is to have your buyer added on to your contract with the bank, and then after closing, give your buyer a quit claim deed in exchange for your fee. I would not recommend doing this, though, unless your buyer is someone you know and trust. I have only done it this way a few times, and it was with a buyer I have worked with several times before, and there was a mutual trust there...

Finally, as you mentioned, you can borrow the money for the first transaction, close on it with your funds, and then resell to your buyer right after the first closing (double close). There are quite a few companies who will lend money for this type of transaction. My recommendation is CashForMyClosing.com. They will also provide you with a free proof of funds letter to submit with your REO and short sale offers. If this is the route you are going to take, you would just have to take the extra costs into account when you are structuring your offer.

Anyway, those are the ways I know of to wholesale REOs. There are a few more hoops to jump through, but it's really not that big of a deal once you start doing them.

Hope that helps,
Steph