Flipping Real Estate Owned Homes: How to Do It
Some of the ideal properties to flip are real estate owned (REO) or bank owned homes. They are cheap, in relatively good condition, and most of all, they can be found within a mile radius of your home. However, flipping or wholesaling REO homes can be quite tricky. It is because banks that own these properties prohibit buyers from assigning contracts to another buyer or reselling a bank owned house within a certain period of time. So how do you flip REOs? It is quite simple, really. With the help of a reliable title company, you can outmaneuver banks’ non-assign-ability clause on buying REOs. There are several ways to flip or wholesale bank owned properties. One of the common strategies used in flipping real estate owned properties is by doing a simultaneous closing. There are two ways to do a simultaneous closing: through a simultaneous double-close and a true double-close. All methods of doing a simultaneous closing follow the A-to-B-to-C pattern. In the A-to-B transaction, the investor buys the property from the bank and then quickly flips the property to an end buyer in the B-to-C transaction. Take note that these two separate deals occur at the same time. In a simultaneous double-closing, the real estate investor isn’t actually using his or her money to make the A-to-B transaction happen. It is because he is using the end buyer’s funds to close both deals. Bear in mind, however, that to successful flip an REO using a simultaneous double-closing, both the A-to-B and B-to-C transactions should be closed on the same day. When using the true double-closing method, on the other hand, the investor uses his own money to complete the A-to-B deal. Most investors who utilize the true double-closing method usually obtain transactional funding from hard money or private money lenders, especially if they don’t have enough cash to invest in bank owned homes. If you’re up to the challenge, then flipping real estate owned properties is the best real estate investing strategy for you. To learn more about buying and selling real estate for profit, log on to www.RehabList.com. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
| Contact ArtiLib| Privacy Policy| Terms of Service |