tag:blogger.com,1999:blog-7026319662555445061.post5563606929761765607..comments2023-10-30T07:48:07.285-06:00Comments on Real Estate Investor Mom: Bulk REO PackagesReal Estate Investor Momhttp://www.blogger.com/profile/14600878054174631781noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7026319662555445061.post-70363039726906285452009-02-24T22:15:00.000-07:002009-02-24T22:15:00.000-07:00Yes, I am not licensed, so I can't make a commissi...Yes, I am not licensed, so I can't make a commission. I used to be many years ago, but dropped it.<BR/><BR/>I have 7 buyers for these properties, 4 represented by a real estate agent. And if this deal works, I can bring in 4 more buyers. Since there are so many buyers, they have cash and/or lines of credit. <BR/><BR/>I have a flash cash funder, but he charges 2 points. Surely he could come up with the $1,500,000 or so to be put in escrow. Then I could have the properties under contract in my name and assign the contracts. Yes, expensive, but it might make sense if the price continued to be right - it would be cutting it close with the realtor's clients because he needs to be paid too. The lender would be making way more than I could. Do you guys know any 1% flash cash lenders? <BR/><BR/>The seller wants the funds escrowed before the people get to see the properties - escrow can be with their title companies. I just found this out tonight - not sure if folks will want to put their money in escrow b4 they know what they're getting... but the seller says that if they don't like their first option, his provider will let them choose from a list of 10 others. <BR/><BR/>So, I wonder if I can put all the properties under contract in my name using the seller's escrowed funds and assign them to the buyers? That would save the flash cash fees. Or would it make more sense to have the people pay me a finder's fee, or whatever is legal in Colorado? <BR/><BR/>I'd be pretty thrilled with $2,000 per house, considering that I had to do no marketing, no negotiating, no property locating... just had to chat with a few people. It would certainly be my best hourly wage ever.<BR/><BR/>Right now, it's all verbal - no contracts, no property addresses - just the promise of a dream.<BR/><BR/>Thanks for your suggestions! You guys have helped me a lot. I need all the advice I can get.Real Estate Investor Momhttps://www.blogger.com/profile/14600878054174631781noreply@blogger.comtag:blogger.com,1999:blog-7026319662555445061.post-74787773101106300322009-02-24T21:33:00.000-07:002009-02-24T21:33:00.000-07:00He's correct about doing the double closing with t...He's correct about doing the double closing with transactional funding, but that can be expensive.<BR/><BR/>You've got two other options...<BR/><BR/>1) Does the contract specifically say that it is not assignable? If not, then it is by default assignable, and you should simply assign the contract for a small fee - $2000 is usually not out of line.<BR/><BR/>2) If it is not assignable, find out how your buyers are buying...if they're closing in 7 days, they're likely using cash or hard money. In either of these cases, you can do a double close, using their money to "pass through" you to the seller, with you collecting the difference between your sale price and the bank's sale price. Some states will not allow this to happen, so check with a RE attorney or a title agent.<BR/><BR/>One more thing regarding the double close "pass through"...if your end buyer is using institutional funding, DO NOT DO THIS. This can constitute mortgage fraud.Waynehttps://www.blogger.com/profile/06118685911022978879noreply@blogger.comtag:blogger.com,1999:blog-7026319662555445061.post-18710648905534150222009-02-24T21:19:00.000-07:002009-02-24T21:19:00.000-07:00Hey, way to go! Keep us posted on how it turns ou...Hey, way to go! Keep us posted on how it turns out with this. <BR/><BR/>In terms of how you get paid, I'm assuming you're not licensed, or you could just take your piece as a commission.<BR/><BR/>You may need to just be a middle man with you on contract to buy while simultaneously signing up your folks to buy from you, double closings same day. And using transactional funding if need be.<BR/><BR/>Would that work for you?<BR/><BR/>...jpREItips.comhttps://www.blogger.com/profile/05733767493830334447noreply@blogger.com