Quitclaim Deeds and REOs- Saturday Night Reader Mail.. | Flip This Wholesaler

Greetings Blogosphere!

In case you were wondering, I’m still alive and kicking over here..

I’ve been kind of swamped lately, but will be back in full-time blogging mode shortly. Pinky swear.

I put together another Reader Mail for you tonight- this one’s about using a quitclaim deed to wholesale your REO deals.

Hope you like it…

On September 20, 2009 at 4:18am, Chris Ranney said...

Thanks Steph, great info. I got a firm date on going full-time in Sarasota. 1/15/2010. Getting a bit nervous. BTW-do you have some thoughts on forming an LLC ? Thank you again. Peace.
On September 20, 2009 at 4:40am, Bill Lassiter said...

Good advice about having a backup plan Steph. This was more great info to piggyback on your BiggerPockets article. Also looks like you’re becoming a whiz at the video editing stuff..:)
Great job!
On September 20, 2009 at 7:44am, Erby said...

Hey Steph, Great content as usual! Video looks real professional. So as of Wednesday you are officially GURU status!
.-= Erby´s last blog ..3/1 in Historic Springfield! Jacksonville,FL =-.
- On September 20, 2009 at 8:31am, Stephani said...
  
  Guru schmuru.
On September 20, 2009 at 8:27am, Stephani said...

Thanks Guys- yeah, I’m getting much better with the editing- this one only took me 4 hours.

Chris- you can go to Sunbiz.org to set up your LLC… it’s $125.

Steph
On September 20, 2009 at 10:17am, Brandon said...

Great video Steph.

Haev a queston for you. What type of paperwork, if any, did you sign with your end buyer when you did your deals this way?

Thanks in advance
Brandon
- On September 20, 2009 at 10:41am, Stephani said...
  
  Hi Brandon,
  
  The 3 deals I did this way were basically handshake deals. We didn’t have anything on paper about the agreement to exchange the quitclaim for the assignment fee. I’m pretty sure this is not the smartest thing to do, which is why I recommend consulting an atty to make sure you have all of your bases covered..
  
  Steph
On September 20, 2009 at 9:51pm, Celeste said...

Hi Steph,

Did you create your “dream team” before you started actually wholesaling? I am trying to figure out if I should already have a RE attorney on hand prior to doing any deals. Also, how did you go about finding an attorney & what fees do they charge you for questions, reviewing documents, etc? Thanks!

Blessings,
Celeste
- On September 21, 2009 at 7:36am, Stephani said...
  
  Hi Celeste,
  
  I found my atty and title co by asking for a referral from another wholesaler back when I was just getting started.
  
  It’s will cost you a few hundred bucks to have someone go over contracts for you, but I think it is well worth the cost..
  
  HTH,
  Steph
On September 21, 2009 at 7:58am, Chad said...

What’s up Steph? Liked the new post. My question is a little off topic though. Do you know anything about Brian Haskins? He’s part of the Flippinghomes.com community, but I don’t know what city he works out of. I’ve been folling his 7 day mini-series e-course. It’s got some good information in it. I’m just wondering if it is worth the $50 to buy his ebook. Any thoughts?
- On September 21, 2009 at 6:47pm, Stephani said...
  
  Hi Chad,
  
  I’ve seen him posting on the forums, but don’t know much about him..
  
  I have to second Hugh’s opinions though…I would wait til Weds. and buy my eBook.
On September 21, 2009 at 11:50am, Barbara Hunter said...

Hi, Stephani

I have enjoyed and benefited from your recent blog posts about wholesaling REOs. I am looking forward to doing my first REO flip!!! (have previously done wholesale deals before the market change) My question is…what kind of contract do you use? The contract my partner and I typically use has the usual contingencies, ie, weasel clause. Do you use the realtor’s contract? Should I just take the contingency clause (21 days for partner’s inspection) our of the one we have and use it? Thanks so much!
Barb
- On September 21, 2009 at 6:48pm, Stephani said...
  
  Hi Barbara,
  
  Hugh is correct, you will need to use a contract specified by the bank if you are offering on REOs. You can’t use your own.
  
  Thanks for stopping by..
  Steph
On September 21, 2009 at 12:04pm, William said...

Steph,

A little off the subject…but what price range are your typical offers being excepted from the banks? Being an all cash offer, I was curious. Is it in the 50-65 cent range???

Thanks,
Will
- On September 21, 2009 at 6:52pm, Stephani said...
  
  Hi Will,
  
  Not sure I understand your question. Do you mean how big of a discount do I normally get, or what price range am I working in?
  
  If the former, it just depends on the deal. I’ve had the banks drop their price 50%, and then I’ve paid over list for properties that were riced right.
  
  If the latter, I work in the 60k and under price range..
  
  HTH,
  Steph
On September 21, 2009 at 6:31pm, Hugh said...

Hi Chad,

I personally don’t know Brian Haskins. But it was me I would wait and purchase Steph ebook if it were me. Plus, she will answer any questions that you have after reading her ebook.
- On September 21, 2009 at 6:49pm, Stephani said...
  
  I’ll be sending you something later on tonight. Check your email..
On September 21, 2009 at 6:36pm, Hugh said...

Barbara Hunter,

Not Steph. Hope you don’t mind me answering your question.

Most REO are sold thru your local Realtors and you will need to use the local Realtor contract in your area to submit your offers.

I’ve followed Steph and also Bob Norton for a while now and they both suggest to make your offers as clean as possible without any type of contigences if possible. It makes your offer look stronger to the bank.

Hugh
- On September 21, 2009 at 6:50pm, Stephani said...
  
  Don’t mind at all, Hugh, thanks.
  
  And I concur on both points..
On September 21, 2009 at 7:45pm, Tony Zamberlin said...

Great stuff on the quit claim deed steph and to the point with a capital P!!
On September 21, 2009 at 7:50pm, Tony Zamberlin said...

Hey Steph,
Got one!! My broker sent me a double wide 2,000 sf listed @ 54,900 until today!! Price just dropped to 29,900! Got a friend of mine making the offer at 19k and me and another girl that has a bank pof hitting at 20k and putting up the 3k earnest $$, as always like u say no contingencies, 0 day right of inspection (from Lee Kearney), then 21 days to close offers goin in the morning after i look at it! I’m sure we can sell it for 26-27k!! The only thing i see here is, i found the deal, the girl im working with want some of the deal and the other guy thats putting in an offer wants some, so we have decided to split 3 ways with whoever gets accepted. We are all marketing to sell the deal!! Do you recommend this or is there a better way??? I just feel a little to thin in splitting 3 ways.
On September 21, 2009 at 8:00pm, Tony Zamberlin said...

steph,
theres just so many people out there trying to get a little bit of every deal that i get!!!!! how do i get around this?? maybe tell them to mark my deals up?? give them half for bringing a buyer?? but why the heck do that if i can sell it on my own???

any help here would be greatly appreciated!
- On September 21, 2009 at 9:35pm, Stephani said...
  
  If you don’t want to split the deal, then you’ll have to get the property under contract on your own, and then sell it on your own. If there are other people involved in the deal, it’s only fair that they get paid..
  
  Steph
On September 22, 2009 at 12:05pm, Jamie said...

Hi Steph,

I have my first property under contract, the bank faxed over the contract to my realtor but they had an addendum in their that states would could not involve the third party and we have to wait till the deed is recorded in our name. Have you heard of this, and is there anyway around this? I don’t know what to do, I am thinking the only way out is to back out of the deal. It’s frustrating because I had a investors interested and now it looks bad on my part that I didn’t come through on my end. Any advice would be great. Thanks.
- On September 22, 2009 at 1:18pm, Stephani said...
  
  What exactly does the addendum say? Most of them will have a clause that says the contracts are not assignable. That doesn’t prevent you from closing on it and then reselling it, though.
  
  What is your exit strategy?
On September 22, 2009 at 3:29pm, Jamie said...

The addendum says this transaction may not involve a third party who recieves a deed prior to this closing or after this closing and before recording of the deed to the purchaser.

Our exit strategy is to purchase using private funding.
- On September 22, 2009 at 3:37pm, Stephani said...
  
  I would run it by your title company and/or atty and see what they say.
  
  You can always strike that out in the addendum when you send it back and tell them you plan on flipping the property shortly after you close.
On September 22, 2009 at 5:04pm, Tony Zamberlin said...

Steph,
I got the addendums along with the regular purchase and sales contract today for the double wide!!! I see it say inpection period on the addendum and its blank. the realtor told me normally its 7 days, so i put that in there. it does not say anyting about earnest money though. is the earnest money automatically refundable withouth having a clause in the addendum as long as i let them know before the end of the insp period that it did not pass ?? thanks
On September 22, 2009 at 5:06pm, Tony Zamberlin said...

Steph,
you said the addendum overides the purchase and sales agreement correct??
On September 22, 2009 at 5:10pm, Tony Zamberlin said...

Steph,
Maybe i should have put these questions all in one. LOL
Is the bank required to clear up any unpaid taxes on the prop before its sold??
- On September 22, 2009 at 7:03pm, Stephani said...
  
  Yes, you will get clear title at closing.
  
  Regarding the other questions- all of that information should be spelled out in the purchase contract and addendum. Make sure to read both carefully before you sign. They are all different, so you need to pay close attn to the fine print..
On September 22, 2009 at 7:01pm, Jamie said...

1 more question…would you happen to know how long you have to wait to refi after you purchase a property?
- On September 22, 2009 at 7:04pm, Stephani said...
  
  Hi Jamie,
  
  I imagine that it will vary depending on which lender you are using…
  
  Steph
On September 22, 2009 at 8:10pm, William Seminario said...

Steph,

On 0 contingencies and 0 day right for inspection. Curious, what if you come to find out that there was some serious foundation problems or hidden mold issues that you did’nt catch. I have no problem with no contingencies ( hell, i would even be up to giving 100% of accepted offer for EMD ,,if i had subject to inspection in place ). Is’nt subject to inspection the norm? Are’nt you setting yourself up for some unforeseen problem. I mean the only way i can see around this is to actually take an inspector to the properties with you and work something out with him as far as payment ( far fetched, i know) but what other way around this is there??

Thanks in advance Steph,

Will
- On September 22, 2009 at 10:48pm, Stephani said...
  
  Hi Will,
  
  My advice is to make whatever offer you are comfortable with. If you feel like you need a day or two (or more) to have someone check the house out, then by all means, add an inspection period in your offer. You don’t want to paint yourself into a corner…
  
  I don’t ever offer on anything unless I am 99.99999% sure I can sell it to one of my buyers, so I don’t have a problem making offers w no contingencies..
  
  Steph
On September 23, 2009 at 7:39am, Tony Zamberlin said...

stehp,
the addendum overides the purschase contract right?? In my purchase contract i put o day inspection and no contingencies. in the addendum i put 7 day inspection, but i does not say anything about earnest money being refundable or non-refundable. is it ok to assume the 7 day inspecion period covers that your earnest money will be refundable if it don’t pass inspection??
- On September 23, 2009 at 2:17pm, Stephani said...
  
  You need to read the contracts and see what they say. Not sure what you mean when you say you put a 7 day inspection period in the addendum. The bank usually will not allow you to amend the addendum.
  
  Steph
On September 23, 2009 at 10:56am, Bill K said...

Steph,
Just came across your site and really enjoy your style. Great walkthru on the process…was exactly what I was searching for. Thanks very much!
.-= Bill K´s last blog ..More About Hilton Head Island Waterfront =-.
On September 23, 2009 at 11:10am, Hugh said...

Will,
Also most REO contract from Realtors that I’ve seen has a built in inspection period even if you don’t actually ask for one in your contract for the bank.

I bet if you can get your hands on local realtor contract you will see that.

Hugh
On September 23, 2009 at 6:38pm, Tony Zamberlin said...

stephani,
the addendum inspction period was blank, so i filled in 7 days.

PS. got a great short sale deal in today thats priced right!! I’m gonna offer 2k over asking price. how will this effect doing simeltaneous closings??
- On September 23, 2009 at 8:28pm, Stephani said...
  
  You most likely will not be able to do a simul close on a short sale. Ask your title company and see what they say- most will not do them on short sales, though.
On September 23, 2009 at 9:19pm, dinah said...

Hi Steph,

I purchased your ebook today and finished reading it today cause I couldn’t stop reading it!!! haha good stuff! My question to you is…If I was to get a realtor license to have access to the MLS wouldn’t that be a conflict of interest?? Can I get in trouble by the board of realtors by taking REO’s buying them myself and selling it to an end buyer?? And would I have to calculate the listings agents commission off my offer. I’m a bit confused with those two question and was hoping you can answer them. Thanks in advance!!

Dinah
- On September 23, 2009 at 9:24pm, Stephani said...
  
  Hi Dinah,
  
  No, you should have no problem wholesaling them even if you are licensed. Almost all of the REO wholesalers I work with have their licenses- I’m one of the few who doesn’t.
  
  Regarding the listing agent’s commission- that is paid by the seller (bank), so you don’t have to concern yourself with it..
  
  Glad you enjoyed the book!
On September 23, 2009 at 9:32pm, Tony Zamberlin said...

steph,
so if i get my liscene i can be paid for wholesaling my props and get a commission from the bank????????
On September 23, 2009 at 9:33pm, Tony Zamberlin said...

what should i do to wholesale this one then???
On September 23, 2009 at 9:35pm, Tony Zamberlin said...

Steph,
My reo broker sent me a new deal today, Its a new listing, they are asking 34,900, i know i can sell it for 34k!! i was thinking about hitting them at 24k. what do you think i should offer?? thanks in advance
- On September 24, 2009 at 9:35am, Stephani said...
  
  You need to study your market so you know what to offer. All markets are different, so there’s no way to tell what to offer just by list price. You need to do your own homework.
On September 24, 2009 at 9:28am, dinah said...

Hi Steph….wow that was a quick response thank you…

So my broker where I am hanging my license under will not take any commisions from me neither? So I won’t have to report my transaction to him? I’m sorry the realtor license part of this confuses me more than anything else…lol..I’m asking because I do execute after learning a new avenue and love learning. I already wholesale but not with REO’s so banks and realtors is very unfamiliar territory. Your blog and book I find to be amazing and I thank you because I can see how it works and its been exactly what I’ve been looking for and you answered those questions.

Once again Thank you and I apologize for all the questions?

Dinah
- On September 24, 2009 at 9:34am, Stephani said...
  
  Hi Dinah,
  
  I’m not sure how it works with your broker, to be honest, but I’m 99% sure if you are making the offer directly to the listing agent and giving away the commission, then you would not have to pay your broker. Not positive about that one though. I don’t have my license myself, so I don’t have to worry about that kind of stuff.
  
  Is there any way you could go the assistant route so you don’t have to go through the hassle of getting licensed?
  
  Steph
On September 24, 2009 at 10:29am, dinah said...

Hi Steph,

So do I just apply for an assistant position (Didn’t know they had those) and if so, I wholesale full time do you think that would require me to work for a broker a certain amount of hours? Not sure if that would be adding to my plate. Would you think is wise to just to tell the broker what I do and see if he’s ok with it? Ughh I need a rule book LOL

Thanks again Steph

Dinah
- On September 24, 2009 at 11:03am, Stephani said...
  
  Dinah,
  
  Here’s an article that might help you out:
  http://www.strugglinginvestor.com/2009/08/how-to-get-mls-access-without-your-license/
  
  Steph
On September 24, 2009 at 11:06am, Tony Zamberlin said...

Steph,
if you know you could sell the deal for 34k and the bank is offering 34,900, what would you offer?? Its been on the market for 2 days now!!
- On September 24, 2009 at 4:53pm, Stephani said...
  
  Offer enough to make a profit and still leave room for your buyer. If they will pay 34k, then you know your purchase price has to be under that amount.
On September 24, 2009 at 11:43am, dinah said...

Steph, Thank you I’m going to look at it now. I can’t thank you enough!!

Dinah
On September 24, 2009 at 11:47am, dinah said...

Hi Tony,

Steph’s Ebook covers all the questions you are asking. You should take a look at it..it might be worth the small investment.

Best of Luck,

Dinah
- On September 24, 2009 at 12:36pm, Shae said...
  
  Dinah, I’m 100% in agreement. Tony, I have read the book and you simply can’t beat the value you’re getting for $47.
  .-= Shae´s last blog ..All you need to know about wholesaling REOs =-.
On September 24, 2009 at 6:37pm, Tony Zamberlin said...

thanks guys. i will invest in it asap!!
On September 24, 2009 at 6:39pm, Tony Zamberlin said...

Steph,
Well its already in multiple offers, highest and best! I missed out on 2 so far. I was like 8k less than the highest and best and it went to them!! My brokers says 9 times out of 10 it goes to highest and best!! How the hell am i supposed to wholesale when this keeps happenin??
- On September 25, 2009 at 8:09am, Stephani said...
  
  There’s less competition for properties that have been sitting on the market awhile. Newly listed properties tend to get a lot of competition, so if you’re going after those, plan on having other offers on the table.
On September 27, 2009 at 8:51am, Kelly Gomez said...

Hi Steph,

My husband and I are new to wholesaling. We have attended a couple of seminars in the past month and have joined Investor clubs and determined two areas to focus on for wholesales. We are interested in the simultaneous close. I know you are from Tampa but was hoping you would have suggestions or maybe another blogger would have a suggestion of title companies in the Ft Lauderdale (Florida) area that do this. If you do not have suggestions, how would I go about finding them? Do I start cold calling into various title companies and just ask?
Thanks for your USEFUL tips!
Kelly
- On September 27, 2009 at 3:34pm, Shae said...
  
  Hey Kelly! Welcome to the wonderful world of real estate investing I’m in the Ft. Lauderdale area as well. There are two companies I can recommend to you that will do a simultaneous close: Universal Land Title (universallandtitle.com) in Weston and Independence Title (independencetitleco.com). I have not done business with either, but I have an local investor friend who has and recommends them both highly. Wishing you the best!
  .-= Shae´s last blog ..All you need to know about wholesaling REOs =-.
On September 28, 2009 at 4:57pm, tony zamberlin said...

Steph,
So you mainly go for older listings to do deals??
- On September 28, 2009 at 5:07pm, Stephani said...
  
  Correct.
On October 29, 2009 at 8:29am, Marcel Umphery said...

Hey Steph, great post and one heck of a Blog.

Keep Flipping those houses,

Marcel
- On October 29, 2009 at 6:23pm, Stephani said...
  
  Thanks, Marcel.

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