Comments on: Saturday Night Reader Mail: Which Contracts Do You Use When Wholesaling an REO?

By: Tony Zamberlin

Tony Zamberlin — Wed, 03 Mar 2010 02:47:07 +0000

Ok Steph,
So on the part with using buyers funds don’t put in contract just let them see at closing? thanks

By: Stephani

Stephani — Tue, 02 Mar 2010 23:39:30 +0000

The addendum is signed at the closing table and my atty explains it to them at that time.

By: Stephani

Stephani — Tue, 02 Mar 2010 23:38:38 +0000

Hi Alyse,

I always sell my deals at a net price to me, which means my end buyer pays all closing costs.

It’s all negotiable, but you can save a lot of $$ by passing the costs on to your buyer. I’ve only had one guy complain about it so we ended up splitting them 50/50.

Steph

By: Alyse

Alyse — Tue, 02 Mar 2010 23:32:33 +0000

Hi Steph,

I’m watching your Contracts for REO video from last Saturday (and what is that great skyline view you have?). You say you use your title company, not the end buyer’s. Does that mean you pay for the title work? I was under the impression “you pick, you pay” when it comes to that.

Thanks,
Alyse

By: tony zamberlin

tony zamberlin — Tue, 02 Mar 2010 14:38:39 +0000

attorney says its up to me to disclose it. so do u get the contract with your buyer or send it to the attorney and let them come in and sign it along with the addendum saying there funds is being used??

By: Stephani

Stephani — Tue, 02 Mar 2010 14:34:28 +0000

It’s up to you whether you want to disclose it or not.

My title company makes them sign a document letting them know what is going on, so I usually just let my atty handle it. Never had any problems doing it that way. Most of my buyers buy from wholesalers so they already know what is going on anyway.

By: tony zamberlin

tony zamberlin — Tue, 02 Mar 2010 03:50:35 +0000

Everyone I got this thing accepted and i used the dang pof from http://www.coastal-funding.com!!! lol

By: tony zamberlin

tony zamberlin — Mon, 01 Mar 2010 06:03:15 +0000

Steph,
i met the realtor today at the office and signed the addendum. it says 7 day right of inspection and seller will provide clear title to the property!! lol The realtor did mention they may want me to sign a hold harmless, but he has not seen it yet. maybe they know something we don’t. I told him i’ll have earnest $ over on tuesday so that buys us and extra day or so to get title started at my attorney which i will call 1st thing in morning. How would u handle telling your buyer that his funds will be used to fund both ends of transaction, or would u even tell him at all?? Here in sc the attorney says its not required to disclose, but im like you i like to be up front with people… talk soon..

By: tony zamberlin

tony zamberlin — Sat, 27 Feb 2010 22:36:46 +0000

ok thanks steph

By: Stephani

Stephani — Sat, 27 Feb 2010 22:23:02 +0000

You usually are required to submit your EMD when you return the signed addenda to the bank, then they sign and send the executed contracts to their title company.

I don’t know what to tell you about the title issue, except I would not sign the hold harmless agreement unless you first tell the end buyer and make sure they know what is going on. You don’t want your buyer backing out because of the title at the last minute. If that happens and your inspection period is over, then you are going to still be on the hook to close (if you signed the agreement), and you will lose your deposit.

I don’t know anything about mobile homes or the title issue you are dealing with- you need to talk to an atty or the title company to get more info.

Good luck!