If you need some wholesaling help with your REOs read this article.
Need some help in REO wholesaling? Want some advice on closing deals? Read the following article for some helpful information on both.
Welcome to the final article in my REO Wholesaling article series. In the previous articles we have already discussed how to create a successful team, find cash buyers- the lifeblood of REO wholesaling, find REO properties, and how to wholesale REO houses. In this article I will show you exactly how to close the deal and get paid.
Previous to this article we used the example of wholesaling REO’s using the LLC method so we will continue to focus on this form of REO wholesaling in this article as well. When you are wholesaling REO’s using an LLC, you are looking to sell your LLC at the closing table rather than the property. As stated in my previous article, banks will not allow you to assign contracts in order to wholesale properties, so in order to get around this hurdle you simply set up an LLC and sign the contract under that LLC name.
As you are unable to assign a bank owned property contract, you will sell the LLC that contracted the property at the closing table. In other words, you are selling a company with an asset (which is the bank owned house) for a profit. So if you want to make $ 10,000 profit from the deal then you will sell your company for $ 10,000.
An example of this is if you signed an agreement to purchase a bank owned property for $ 70,000 and you want to make $ 10,000 in profit you will need to tell your buyer to bring 2 checks to the closing table. One check in the amount of $ 70,000 plus closing cost less deposits and another check in the amount of $ 10,000 less deposits to purchase your company including the assets in the company from you.
The reason why this is effective is because as far as the bank is concerned the company that signed the initial contract is still closing the transaction. The bank did not state that the owner of the company could not sell the company that acquired the property.
This is simply one of many ways you can get started wholesaling REO houses in 30 days or less. There are lots of other ways to accomplish this as well and you can get my free videos series by clicking on the link below. I sincerely hope you enjoyed my article series and I hope you get out there and take massive action. Massive action equals massive results.
Jamel Gibbs
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