THE CORRECT WAY?

[pjm24]

I want to know how are you guys flipping (wholesaling) REO'S? How do get around the earnest money if you don't have it? I heard from an Investor buddy of mine that you write a post dated check. What do you think about that?

[hassansr]

No way around the earnest money issue. As opposed to trying to wholesale reos, now is the time for you to be buying them for pennies on the dollar. Invest in a good private lending program to learn how its done and you'll be fine.

Try to find private lenders that are able to stick with you for the long haul, 1 to 2 years, give them a 10% return on their money, secured in what ever house you buy. Make sure that your mortgage is structured in such a way that you don't make interest payments and that it all accrues until the house is sold.

Private lenders will be family, friends and other associates.