I have been looking for other ways to buy REO's from banks since they do not or probably will not sign on a contract with an assignment clause. So I was searching and I found out you can use Land trusts or trusts too, but also banks will likely not sign a oontract with this either, I read that they prtty much see it as the same thing as putting the assignment clause and that banks will shy away. So I found another way, Using an LLC to buy the REO. Im not sure the whole process but it involves you forming a LLC with the intention not to use it as a business, you form it with your states Secretary Of State, paying a small filing fee and doing the stuff that needs to get done to form it, not really complicated and im sure you can google how to actually do this, I live in Texas. (Its alot better to pay a couple hundred bucks to form it than paying however many points that transactional funds charge which is thousands of dollars in the end and having complications with a double close) So when you write up the offer to purchase, the buyer will be that LLC. Then you do whatever to submit the offer, pay the Earnest money etc., Then you would just sell the LLC to another investor, for the assignment fee you would have charged them to buy that property from you. If anyone has done this or knows anything about it, can you share a little? and I think this is how it works as far as buying the reo and getting paid,
Say you have a 280K FMV home and you offer the bank 200K and they accept so you get it under contract for 200K, you could offer the house to another investor for 220K, he would pay you the difference between 220K and 200K which is 20K to buy that LLC from you, in turn buying that contract to buy from that LLC, so they can close on that property for 200K, so Im sure you can find someone who would want a 280K home for 220K with 60K instant equity or they could turn around and flip it or hold it. Any thoughts?
Corpus Christi, Tx