JUST AMAZING!!!!.... 100+ REO OFFERS IN TWO WEEKS... I LOVE THIS "FEVER!!!"

Keep us posted on your good news, keeps the rest of us motivated to keep trying. Sounds like you have a gem with your RE agent - I am still searching for mine...

I had to fire my 2nd RE agent. A friend passed on to me 4 cash flow properties to lock up. I called my realtor and told her that I have the MLS #s, list prices, etc and wanted her to handle the paperwork, that's it so I can lock up these proprties for 30 days with earnest money. She said that they won't take her serious because she told me that noone will lock up a prop and take it off the market for more than 15 days. And she said that I need to have proof of funds, 3 % down in 5 days and is NOW having 2nd thoughts about what I am trying to do re assignmentsin YADA YADA YADA....I can't take all this negativity anymore!

The good news is I worked out a deal to use an equity partner to lock up 2 of the deals and am bird dogging (making about $15K) for the other 2.

I am still on the hunt for a good REA, but investor friendly realtors are a rare find!

Just my 2 cents.......

And wealth2009, a big congrats! You have a precious gem of an REA.....do they have any sisters/brothers/lost cousins

Neil

That is awesome!!

How does that many offers, especially to REO's work? I am ready in my mind to do something like that but I am just a bit uneasy about it.

1. Do you put in a lot of earnest money for these offers?
2. Do you only need pre approval to put in bids on REO's

Could you give a little more detail on your process? I would appreciate it.

I am ready to be where you are.
thanks,
TJ

Neil, Give that RE agent the old heave ho!!!!!!! Focus yourself back on those deals. I had one agent/broker show up for a showing 15 mins late and there just happened to be another agent that was showing the house to a couple as I waited for this broker, so I walked thru the house myself. Needless to say, I went with this agent and am putting an offer in today.

Bruce

It sounds like you are being too technical with your agent. All you needed to tell them was that you're making an offer not "locking up properties." Those kind of terms are going to scare them. You should of told her I want to make offers on these two properties. These are my terms... 30 day escrow, 17 day inspection period, blah, blah, etc. The majority of agents don't get what we do, so you have to use their language. Once you found your buyer, you could have added him to the title before closing, he closes the deal with both of your names on the deed and then you quit claim the deed back to him after closing. Plain and simple and the agent doesn't freak because your using their language.

I am in awe of your progress, enthusiasm and excitement! And of course, your success! I am eager to see what comes next from all of your offers. It's exciting! I'm not sure where you get all of your energy. Whew. Congrats!
N.

We are getting motivated following your post! Question for you though, are you double closing these, or doing the quit claim deed for these homes. I have heard many stories about not being able to put "and/or assigns" on REO's so just wondering what your plan is for these homes you have locked up. and if you did use the and/or assigns how the bank handled it.

Thanks
Niki

Kimmy
This way does seem doable. Have you or someone you know had success closing this way? How does the end buyer react when he hears that you want to be on the title with him?

1. At what point do you collect your assignment fee?
2. If you have to wait and collect your fee during closing...will the title company have a problem sending you a fee since you are on the title as one of the actual buyers?
3. When it comes time to quit claim you half ownership of the property over to your end buyer will the quit claim have to read something like "I am quit claiming my half of the property located at xxx Main St. to (end buyer). ?

These are just some things that I am sure will come up when you go and find your end buyer. I know he will have questions if he has never done such a thing.
Good thinking Kim.
Sissy

Awesome stuff. Please post with updates and details later, I'd love to hear more. Congrats!

Always collect the assignment fee up front. I'm making my offers so that they leave me several options to close. I am requesting buyer's choice of escrow, so that I can use an escrow company that does double closings. If I can't do that then I'm going to try what I mentioned above with the quit claim deed. I will have my end buyer provide proof of funds, pay me, fill out a quit claim deed (but I hold on to it until closing), add the end buyer to title, close and give him/her the quit claim deed. Another option I am going to try first is after receiving my fee, tell the escrow company that my partner and I decided to put him/her on the title for tax reasons and have my name removed. If they don't go for it, then I will just add the end buyer's name to the title and close using the quit claim deed method. I'll play around until I find a good system.

Good Afternoon, TJ.... My earnest $ deposits are usually $500.00 .... I typically write a "blank" check (no payee designated) to my RE agent, who in turns makes a copy of my check(s) for the title companies. Yes, I receive my "pre-approval" or "proof of funds" letter through Coastal Funding.... I make my offers and attach the POF letters with each offer to the bank.... I bid for each property under my LLC, but sign under my pricipal/personal name because I am the single owner of the LLC. In addition, I use the clause... and/or assigns... for all my offers, which the lender will accept.

If you have any other questions, just PM or email at: jenkinsmhg@****... Shalom!

Hey K, can you explain alittle more clearly how the process works when you add the end-buyer to the title, prior to closing then you quit claim the deed back to him/her after closing?????? Hmmmmmmmmmmmmmmmmmm I need some clarification on how this works??? Thanks!~

Hey Niki, I have not learned the "quit claim deed" process as of yet, but hope someone can teach me on this site???? As for the offers, I am using a "back-to-back closing, because "simultaneous closings" are "illegal" in certain jurisdictions...
I do have in my addendums "and/or assigns" or "permission to reassign".... My plan will be to perform "back-to-back" closings with Coastal Funding....

Woo hoo! Way to go Christopher!! So, were these all REO's, and did they agree to pay all closing costs? How long did you get for inspection period and until closing? did they take your first offer or did you have to go back a second or third time?

I've got my first couple of lowball offers out there, and went to look at 6 more houses today! Will run numbers and get those offers in tomorrow.

Give us an update with all the details! We're dying to hear!

Tracey

Great job Chris, Your info is priceless! What about the seller concession!

Randy

Thanks so much for your advice and encouragement....Kim, you always have my back and have incredible outside the box methods that blow me away. And like you say, every step you take is a learning exp such as adding your end buyer to title and quitclaiming the deed. If you don't try you will never know if it works!

And Wealth2009, it's amazing how my realtor was so reluctant for me to even submit an offer using Coastal's POF letter. She kept asking how do I explain this to the listing agent. I said what do you mean, this is no different than a pre-qual letter. She said you can't do this you can't do that, etc. Kim, I like your advise about the 17 day inspection and 30 day escrow. My agent was even saying that this needs to be done in 5 days. She is dripping with negativity! I've moved on and am now working with another agent that was referred to me from an investor friend of mine. He laughed when I told him about this realtor. Wealth2009, just curious.....I see that your lenders are accepting the "and/or assigns" terminology. Which banks are you using? It is really difficult in Cali to use this langauge and that is why using the methods that Kim states are needed to get around this.

Neil

Thanks for your reply Kim. I am anxious to see this technique in action and how it ends.

Hi Christopher. Congratulations on your exciting success! We have been following your "FEVER" threads and we are really happy for you and inspired by you! One question, though, why do you need to perform a back-to-back closing when you have the right to assign the contract to your end buyer. I thought that if the bank accepted the and/or assigns you could just fill out an assignment of contract form after recieving your fee and you're out of it. Would you mind explaining a little bit more for us? Thanks!!

I believe in Cali the banks are starting to put in there contracts "no assignments" and so we all need to do what we're doing and find the best strategy around it.

Wealth2009
I was wondering the same.If you get an assignment accepted, you wouldn't have to double close.

5HEnterprises wrote:

Hi Christopher. Congratulations on your exciting success! We have been following your "FEVER" threads and we are really happy for you and inspired by you! One question, though, why do you need to perform a back-to-back closing when you have the right to assign the contract to your end buyer. I thought that if the bank accepted the and/or assigns you could just fill out an assignment of contract form after recieving your fee and you're out of it. Would you mind explaining a little bit more for us? Thanks!!

Thanks D.... the back-to-back would only apply to those properties where I did not receive a "and/or assigns" in order to "lock up" the deal... Otherwise, you're right I would only need to have my "assignment fee" form completed and receive my fee before/after closing... Thanks!

That's correct!!