Thanks for answering my last question! I wanted to know if you’ve worked a true double close where the end buyer supplied all of the funds/cash necessary to close both deals. I’ve learned that the end buyer can wire the amount agreed on between us, to the title company or attorney to stay in escrow until closing.

At closing, we buy the REO with the cash there and sell the property hours later to the end buyer, with the left over being our profit. (I assume the settlement statement would have to show a seller credit to the end buyer in the amount of my initial REO purchase.)

What are your thoughts?

Best,

Scott

I don’t try to keep track of which lenders are good on this and which are not. Lenders are disappearing all the time and those that stick around are changing policies so rapidly that they might as well be different banks.

I would suggest contacting the people at Coastal-Funding.com as this is their core business and they should know which lenders investors are using these days.

The only issue that comes up with transferring the deed twice in one day is if the end buyer’s financing source has a problem with it. Other than that, there shouldn’t be an issue.

As to the issue with Method #2, you do need to check and see if the home is owned by Fannie or Freddie. Just ask the listing agent.

Method #2 – Simultaneous Double-Close
it says …
It still works even with end buyers that are getting conventional financing if the end buyer is getting their financing through the right lender.

How do you find the right lender to fund the end buyer?

All the Best,
Jim

How to Wholesale Bank Owned REO Foreclosure Properties

Under Method #2 - Simultaneous Double-Close:

…It still works even with end buyers that are getting conventional financing if the end buyer is getting their financing through the right lender.

Please tell me if there are any of these right lenders that will do loans near Pittsburgh PA. and who they are?

Thanks for any help you can give me.

All the Best,

Jim

Thanks for putting together this great article with the 4 How-to’s.

In regards to double closings, are there any issues that come up regarding a transfer of Deed twice in one day? Does this issue only arise if the C player (end buyer) wants to use traditional financing. I assume that lender won’t fund because they smell a flip with the property’s deed lacking “seasoning”. So, if all players (my end buyer and myself) use cash, then there are no problems? Does my question make sense?

You touch on this in Method # 2 cons. If we don’t know whether the seller bank is Fannie/Freddie, we don’t know if this method will work.

So, it looks like when working with Bank REO’s, it’s best to use an LLC or true double close.

Your thoughts?

Respectively (and thankfully!)

Scott Shapiro

chicagobrick2flats@gmail.com
773.988.2069