Locking up Foreclosure and REOs

Locking up Foreclosure and REOs

Hey Everybody,

I'm sitting here going through the book and was wondering, is it possible to lock up a property owned by the bank on contract then assign it to a motivated buyer? Has anyone had experience in doing this? Any info would be greatly appreciated as there are lots and lots of foreclosures and REOs in my area. I do not have any money and horrible credit but would like to try and cash in on these opportunities. Once again, thank you for your help and support.

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Banks usually do not allow assignments, BUT ...

...you can use transactional funding; the transaction funding company will provide proof of funds to submit to the bank with your offer ... but you need to have the buyer already lined up for them to fund the deal.
You can purchase using a corporation, LLC or S Corp & then sell the corporation to your buyer. This not only gets you around the assignment part but also any "deed restrictions" (time period you have to hold on to the property prior to selling, Ex : Fannie Mae is 90 days).


LLC's, S Corp & the state of Delaware

Hi to All; hey does anyone have any solid facts about the urban myth that forming a company in state of Delaware is less expensive than in other states- such as perhaps California? Really anxious to find out since I want to open more than one business! Thanks All!

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anita Page


yes and no

Ryan,
you can lock up a bank owned property (REO), and sell it to a cash buyer; however, you cannot assign it if you make the offer under your name. You can do a double close (you will need transactional funding to pay for the first closing, then turn around and sell to your buyer, IF bank doesn't have any contingencies stating that you have to hold property for a period of time)

@ Anita,
Delaware is supposedly one of the 'friendliest' states for businesses; however, do your due diligence. Make sure you know what your state rules are to avoid having to pay fees in both states; there are other things to consider too, not just the fees... You can check online how much the fees in Delaware are:

http://corp.delaware.gov/howtoform.shtml

You can also get 'LLC's for Dummies'; it lists the fees for all states, rules, etc.

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Valerie

β€œAnd will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss

"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown

My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...


Delaware Corporations

I am not sure about Delaware but I know that Nevada is a great state to incorporate. I have done it twice and it worked out great. You can set up a Nevada corporation and file with your own secretary of state to do business there. companiesinc.com is a great place to start. I believe they even have information on how to build corporate credit


Thanks you guys

@Valuni and gceriani,

Thanks for the valuable information. I will definitely have to put your suggestions in my arsenal. Thanks again


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