CleverInvestor.com's Whiteboard Wednesdays - How To Flip REO Properties.mov

[curtisjohnson2010]

Awesome information, and you don't have that "arrogant real estate guru" cockiness. Refreshing.

[inzanemusic]

So how even on fane Mae owned reos where contract says "not assignable we would still be able to do this ? Also are you closing the B to C first in order to have the money to wire ?

[MichaelF98]

Great training!

[lomaxproperties]

I was told that I "should have a POF letter" for my offer to be competetive and should send it in with the Offer...also the earnest money, are you sending that in with each offer or just with the accepted offers and what is typical for an REO...$1000?

[darlene1ist]

..ok.. Q: the part at the end when i get my "wholesalers fee".. what do i sign as proof of the amount that is owed to me? and and when do i sign that in order to get paid?? ?..

[cleverinvestor]

@darlene1ist You would fill out an "Assignment Form" with the cash buyer and turn it into escrow along with your purchase and sale agreement.

[darlene1ist]

thanx soo much for posting this vid. i am brand new to wholesaling and i was scared to do reo's.. i thought it would be to complicated, but u make it so step by step, i feel that i can do this without any problems.. and..p.s. i caught "big foot" he has about 5 properties a week to look at, and a friend i just made by networking is a remax associate ...can you sayyyy MLS!!!? LOL thanx again (o;

[jmdmillionaire]

are you going to the bank title co to tell them that you want them to wire them the 95k?will it be possible that the bank title co are investor friendly?

[cleverinvestor]

@jmdmillionaire Yes...but we have our title company simply call the banks Title company and ask for wiring instructions. They do not explain why...we just do it. If the Banks Title company asks "why" then we just say our money was sitting in escrow over at this title company and we need to wire it over to you!!!

[cleverinvestor]

@jmdmillionaire No. We use our title company to close the B-C transaction and those funds get wired to the banks title company where it funds the A-B transaction.

[Tally81]

@cleverinvestor ~ Basically, you do what I've heard as a "Courtesy Closing" at your title company, in a round about way.

[3323jordan]

Great video made perfect sense, one question the language inside the contract what needs to be in there to insure you can flip the property to the new buyer?

[cleverinvestor]

@3323jordan Nothing special really. You see...since we are actually funding the deal and not assigning it, we can basically use a standard "Realtor" contract without to many extra clauses in it and be just fine. Once you have a property under contract you have "equitable interest" which gives you the right to re-market the deal. And since the back end buyer is cash we are just double closing the deal and keeping the spread!!!

[BlackFriday32]

Thanks for the reply. What have you found to be the best tool for attracting the cash buyers for your reo's. I like the way you say to have the buyers first before locking up the property.

[cleverinvestor]

@BlackFriday32 The MLS has a little used feature where you can search for closed deals by "financing" type. We search "cash" deals that have closed recently and go to the tax records of those deals and get the buyers "taxable mailing address". We then mail them a postcard driving them to a squeeze page or get them to call us. We build our cash buyer database this way!!!

[BlackFriday32]

Do you guys use an agent to contact the banks

[cleverinvestor]

@BlackFriday32 Yes we do...actually many agents. The goal is to create relationships with the largest REO agents in your area and build a relationship with them. Then they will start bringing you deals that fit your investing criteria.

[cleverinvestor]

@BlackFriday32 Yes we either initiate the offers to the banks by having our agent do the research and submit the offers, or we go out and build relationships with the top REO agents in our area and have them bring deals to us!!!

[stormchaser5137]

Very informative video! I'm new to real estate investing and this video helped clear up some of my questions. I'm struggling with how I'm going to get started. I'm thinking about buying and rehabbing a reo home first to get my feet wet. I'm a licensed GC so the rehabbing part will be easy to me. Its the whole "finding the deal" part I am trying to learn.

[cleverinvestor]

@stormchaser5137 Well we hope you don't get too hung up on details! Just find another successful investor in your area and mimic what they are doing. You can even offer to Bird Dog for them for a month or so just to learn the ropes on finding and acquiring good deals in your area! Best of luck.