JCProperties 0 Report post Posted January 16, 2005 I was thinking about getting involved in buying/flipping REO properties. I've been told in my research that "all banks" require a "no assignment" addendum. Is this true? If so, is there a way to flip REO properties? I've also been told to run from the REO game, altogether. Anyone have imput on this subject. Thanks JC Share this post Link to post Share on other sites
Kimberly 0 Report post Posted January 16, 2005 This is the short version on how to do it -- set up an LLC to purchase the property, then sell the LLC. The contract is never assigned. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 17, 2005 HI, JC. True that banks will not allow assignments. They expect you to follow through and make good on your purchase agreement. The REO game, as you call it, can be a very difficult way to break into real estate investing. For starters, it requires capital. And usually large amounts. Banks don't dicker with creative financing terms. They want all cash, and they want it now. It can also be very frustrating for a newcomer because you'll often be going through layers of Corporate BS to get to the person who can approve the offer you're making. In my opinion there are easier and safer ways to make a buck in real estate for the beginner investor. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted January 17, 2005 JC,We put "Your company on behalf of an entity to be formed". This way once it is accepted you can form the LLC, market the property and find a buyer.If you intend on flipping REOs I would MAKE SURE you can close if your buyer backs out. You will make people VERY unhappy if you can't close.Regards,Adam Share this post Link to post Share on other sites
ChrisGA 0 Report post Posted January 20, 2005 Well,to be honest, I dont really care what the banks say with the contract...... I just assigned one the other day....of course I have about 3 on my plate from the same bank....REO what is that.......the banks i do business with all foreclosed properties are in the non performing assets.....dont use REO with banks that is a realtor term....... YOU could do a double closing, with you bank and your buyer..... this gets around the no assignment clause....oh, use another closing agent. Share this post Link to post Share on other sites
