How to Wholesale REO's - Real Estate Investing Training Video

[Lounsbury6257]

Hey everyone I want to share a book that just came out about REO's is "REO BOOM" this book has over 400 pages on the entire REO process. Check it out and I hope you find it helpful like I did.

[focus1880]

when selling a llc to an end buyer and the deposit money is in place if the end buyer does not want to pay full assingment fee until closing but does agree to double the deposit money does this have to be indicated in the contract and is this non-refuundable also the end buyer is totally responsable for all closing coast unless he/she can work something out with the bank or me thank-u-

[Ednyce81]

is this only necessary for reo's, and why ?

[localmentor]

@Ednyce81 yes, I only use for REO's (I think some people are using this for short sales too) because often the lender addendum states one must have guaranteed funds to close the deal - meaning you can't use funds from a double close. That leaves you using transactional funding (1-2% of the price) or using this technique to avoid having to pay for the cost of transactional funding. You can also use a trust and sell the beneficial interest but trusts can be a red flag to lenders.

[Ednyce81]

is this only necessary for reo's ?

[gnice25able]

do u know any good title compnies and attornies that works with real estate investors who wholesale propeties

[wilber638]

Yes, I have a MD LLC , so can my MD LLC buy a Colorado LLC to sell the property and make a profit???? Thanks

[wilber638]

Does this only work for Colorado properties....if I am in Maryland and I buy a Colorado LLC can I sale a property in MD with this LLC

[localmentor]

@wilber638 - yes, but you might want to create a MD LLC

[TheMotifES8]

Could you please tell me how I can get a copy of your attorney drafted contract ? Thanks!

[localmentor]

@TheMotifES8 you can get it with any of my courses at my michaeljake website

[showem88]

yep, this video is great! keep them coming!

[TheMotifES8]

I have a few questions I'd like to ask you:

1. Do you form the LLC prior to making an offer?

2. Do you have the Buyer of the LLC dissolved the entity once buyer closes escrow to avoid any potential liabilities?

3. How can you prove to the Buyer that there are no debts, lawsuits, liens, citations, etc.,... attached to the LLC.?

4. Do you offer your attorney drafted contract as a burn plate?

Thank you for your posts! Great stuff!!

[localmentor]

@TheMotifES8 see below:

1 - Yes

2. - What Liability? You sell them a shell LLC. Once it's sold you no longer have anything to do with it.

3. No one has ever asked but its a brand new entity and my agreement says it has no liens, judgements, etc. Any local court records search could verify nothing is pending

4. yes

[reycake]

If creating an llc prevents you from using your own money that you don't have anyway, who provides the POF that the lender will require?

[bigray6113]

how can i get into this business you motivate me sir

[kyotic77]

Im kind of confused. do I tell my buyer that this home is $100,000 even if the home is $95,000 to get my assingment fee? or do I tell them exactly how much my fee is before escrow?

[localmentor]

I tell them how much the whole things going to cost them. If my contract price is 95k and I'm selling my LLC for 5k, then I "offer" it to my buyers at 100k - when one says yes, then I show them they are paying 5k for the LLC and 95k for the house. The first time you do an LLC sale with a buyer takes a little more time to explain it, but after they do it once it's easy on every one thereafter.

[kyotic77]

does the bank need to see my fund seasoned and and recieve a deposit from me as a wholesaler in order for me to get the contract?

[localmentor]

they will want a proof of funds letter. Once you get the contract accepted they'll want a deposit and they may check the funds letter, but probably not.

[kyotic77]

Can I make my own LLC for free? if not whats the quickest way to get it?

[localmentor]

I can't give legal advice - talk to your attorney. The cheapest way to create one is likely on your secretary of state's website. I can file one on mine, online and pay $50 (Colorado) on the website.

[kyotic77]

Did you double up on your earnest money which is 1000 to 2000 or doubled your assingnment fee from 5000 to 10000?

[localmentor]

I often do now - double the earnest money required on the listing. I don't assign when wholesaling REO's - I sell an LLC for a fee - that fee is my profit and no I didn't double it, I get what I can on each deal based on how well I tied it up and what someone else is willing to pay for it.

[kyotic77]

Did you double up on your earnest money which is 1000 to 2000 or doubled your assingnment fee from 5000 to 10000?

[220lucci]

do i need an attorney to write me up an llc document to close the deal?

[localmentor]

Must have missed this comment, appologies for a SLOW response. No I don't have an attorney write up an operating agreement. just create the articles of organization on the sec. of state's website