Posted by js-Indianapolis on July 29, 2003 at 16:21:07:
Read my post above to figure out the right way to flip and REO.
Pardon a newbie’s naivete but… - Posted by yshNJ
Posted by yshNJ on July 29, 2003 at 11:52:19:
has anyone executed a flip or an assignment of contract when the property is an REO (listed by an agent)? Is this any different from a “regular” seller. It seems to me that one would definitely have less control over the contract. I’m guessing the agent/realtor would ask for a proof of funds perhaps. Can anyone shed light on this matter for me? Thanks a bunch.
There is more than one way, in fact. - Posted by js-Indianapolis
Posted by js-Indianapolis on July 29, 2003 at 16:40:15:
Heather has one way that I have heard about, but never tried. The way I did one is as follows:
I made my offer in the name of a land trust. Standard Board of Realtor’s Purchase and Sale form, nothing special. I specified a cash offer in the name of 123 Main ST Land Trust. The first time through I tried to have my agent sign for me as “Buyers Agent for 123 Main ST Land Trust”. Bank One’s agent, the selling agent, demanded I sign the contract. Which I promptly did, with my garbled signature, first two initials only, and no title. Offer was accepted.
So let’s see what I accomplished. I now hold contract on an REO, and I’m the WHAT? I could be the trustee, and get paid a management fee for my services. I could take beneficial interest of the trust. Someone else could take beneficial interest, and then assign it to an LLC. The LLC could have multiple members, or be sold. Heck, my signature is so illegible; I could get away with straight assignment, and say that DL-Idaho is what JS-Indianapolis signature really says. WHATEVER! Get the thinking hat on, and figure it out. There’s more than one way. Probably others, I didn?t think about.
Now, that pesky proof of funds letter? Well, being that your bank won’t just give you funds for nothing, you need to have that offer accepted before you fund the trust. Right? This is what I came up with for Bank One anyhow. That satisfied them. BTW, getting a preapproval letter isn?t? hard. Again, get your thinking cap on and think of the many ways you might get a letter in hand, simply stating that ABC Mortgage Co has preappoved you.
I don’t know how you could just flip in your own name, aside from double closing. With a cash buyer, and a good closing agent, you might pull it off. However, if you’re assigning to someone needing a mortgage, you’re getting into the whole “planetary alignment” thing. It could happen, but have fun being a plate spinner for 4-6 weeks, and trying to keep them all from crashing.
Re: Pardon a newbie’s naivete but… - Posted by Heather_Tx
Posted by Heather_Tx on July 29, 2003 at 15:35:04:
This is from what I have been told, and have not tried it myself… but maybe it will help 
Assigning REO’s is usually a no go, but you CAN Buy it into a corp or LLC, and then sell that LLC to accomplish the same thing as a flip. Least this is what I hear
Heather_Tx
Re: Pardon a newbie’s naivete but… - Posted by Dave T
Posted by Dave T on July 29, 2003 at 12:26:58:
Watch for the “Contract Cannot Be Assigned” Clause! You cannot flip otherwise.
Re: Pardon a newbie’s naivete but… - Posted by Joe(Fl)
Posted by Joe(Fl) on July 29, 2003 at 11:59:32:
You’ll need a pre-qualification letter for REO’s.
YOU’RE WRONG TOO. - Posted by js-Indianapolis
Posted by js-Indianapolis on July 29, 2003 at 16:21:50:
Read my post above to figure out the right way to flip and REO.