Can You Assign REO's? Real Estate Investing Training Video

http://www.localmentor.com Colorado Real estate investment expert, Michael Jake, teaches zero down investing techniques. Learn wholesaling houses, wholesaling REO's, foreclosures, short sales, subject to, land contracts, owner financing and other creative real estate financing structures. Free Colorado Real Estate Investing Course teaches you how: http://www.localmentor.com

Category:

Education

Tags:

• REO Wholesale
• wholesaling REO's
• REO
• No Money Down
• Wholesaling
• Assigning Contracts
• contract assignment
• subject to
• lease options
• real estate investing
• Michael Jake
• Mike Jake
• localmentor

[NajeeNIB]

How does creating an LLC, satisfy the REO's need to see proof of funds to allow them to accept the offer? Do you form an LLC with the Buyer and show his funds? And why would a buyer do this with me. I am not sure that I understand.

[localmentor]

@NajeeNIB - one has nothing to do with the other - you use an LLC to get around assigning and/or having to use flash cash at closing. You need proof of funds for whatever you are closing in/taking title as/flipping as - hard money lenders can get you a funding letter or just google "proof of funds letter" there's many sites that let you create your own funding letter. this is not a problem.

[TANISHAADJO]

whats the site to to create the llc in CO?

[localmentor]

@TANISHAADJO the Colorado Secretary of State's website - just google it - go to the business division then you can search names to make sure no one else is using the name, then "file a new document" and you can select new LLC

[TANISHAADJO]

so i assign the contract in my llc? i assign the rights over to my end buyer?

[localmentor]

@TANISHAADJO the LLC writes the offer to purchase the REO. Once you contract is accepted, you sell the LLC or the membership interest in the LLC. You'll need an agreement to sell the LLC, then your buyer closes on the contract. You may have to work out the earnest money - often I put it up before I find a buyer - else If I haven't, I just have my buyer put it up. have to coordinate with the title company or closing attorney who will be signing for the LLC and Statement of Authority

[tedabalos5]

REO’s are still here and the time to make money is NOW!!! If you are new to real estate or want to get into REO’s first read this book “REO BOOM” it’s a helpful book that walks you thru the entire REO process.

[localmentor]

@localmentor ...and yes it addresses all those concerns for the buyer...including whether or not membership certificates have been issued...which usually they are not.

[localmentor]

@TheMotifES8 comes with either the "lazy man's guide to wholesaling houses" or 2010 Wholesaling Seminar on my blog at michaeljake (add dot C O M)

[TheMotifES8]

Hey Mike, what type of contract do you use or more specifically, where can I get that contract to sell the LLC to the end buyer? I'm sure the buyer would also want to assured the LLC is clean & clear from any other activities, litigations, bills, liens, etc.... Does your contract address those concerns if it becomes an issue to the buyer?

-Do the buyers make the check payable to your name or your company?

-After you sell your LLC, is there anything else you do to sever ties between You/LLC?