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Real Estate Investing Forums | Real Estate Investing | Bird Dogs, Wholesaling, Flipping Properties Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas, motivatedceo) | Topic: Fipping REOs without any of your own money
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Author Topic: Fipping REOs without any of your own money  (Read 877 times)
theinvestorguy
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« on: February 20, 2012, 08:58:01 AM »

Hi everyone, how do you flip a reo when you have no money or credit?
How do you have end buyer come up with earnest money?
Also, I heard about using a quit claim deed at closing and how does that work?
« Last Edit: February 20, 2012, 08:59:33 AM by theinvestorguy » Report to moderator   Logged
Real Estate Seller
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« Reply #1 on: February 20, 2012, 10:15:14 AM »

Find you a hard money lender to buy the REO's and then you flip them.
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I am the king of short sales.
theinvestorguy
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« Reply #2 on: February 21, 2012, 03:50:53 PM »

Thanks, but is  there any other ways like having my end buyer fund the whole thing.
Also, you ever heard about using quit claim deed at closing?
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DamGeo
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« Reply #3 on: February 22, 2012, 09:48:33 AM »

Try researching getting the property under contract using a LLC and then sell the LLC to your end buyer for your assignment fee and have the end buyer close on the property. The sales contracts through banks arent assignable for the most part as far as I know.
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« Reply #4 on: February 22, 2012, 09:52:31 AM »

Make sure you disclose to the seller that you are not the buyer and that you will be doing assignment to a 3rd party.
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Mbluem
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« Reply #5 on: February 22, 2012, 06:19:06 PM »

In order to flip REO's with no money or credit you have to use a transaction funder, and double close the transaction. For a small fee (between 1 and 2%) they will fund you A-B transaction. You buy and sell on the same time. Therefore the only money you need is your earnest money deposit. You need some funds to flip REOs.

You negotiate a purchase contract, and have him give you a deposit just like you did with the bank to get the reo in the first place. If you are talking about using their funds as your deposit, you have have to have your attorney draft an addendum to your contract to allow this. Your buyer probably will not go for it.

Some idiots will take a quit claim, but the reality is title insurance is cheap especially with the risks involved with REOs. When you take a quit claim deed from somebody else, you don't have title insurance. This is especially important with REOs as the property was taken without the owners consent in most cases and many of them (with the robo signers and other scandals) may have a claim. You should go through a full closing and provide a warranty deed if at all possible.
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Real Estate Investing Forums | Real Estate Investing | Bird Dogs, Wholesaling, Flipping Properties Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas, motivatedceo) | Topic: Fipping REOs without any of your own money
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