| Foreclosures are dominating the real estate market | | | | the LLC or entity from you for your wholesale fee. |
| and bank owned properties or REO's make up a huge | | | | Since the property is owned by the LLC or entity, the |
| portion of all listings. This is perfect inventory for | | | | end buyer owns the property with the LLC. |
| wholesale real estate investors. But how can you flip a | | | | 5. Use a Title Holding Trust (or Land Trust) to buy the |
| bank owned property if the bank does not allow | | | | property. You can use a title holding trust to buy the |
| assignment of contract? Here are the 7 best ways: | | | | property and then sell the beneficiary interest to your |
| 1. Make your end buyer your co-buyer. You get the | | | | end buyer. As in the previous REO flipping strategy, |
| contract with the bank. Once you find your buyer you | | | | your buyer can fund the purchase transaction and |
| add them to the contract as a co-buyer. After closing | | | | take control of the trust or entity at the same time. |
| you execute a quit-claim deed to remove yourself | | | | 6. Do a double closing. Double closings are legal and |
| from the title in exchange for your wholesale fee. | | | | ethical and are sometimes referred to as |
| 2. Use your end buyer as private lender. You use your | | | | "simultaneous closing" or "back-to-back closing". You |
| end buyer as a private lender who funds your | | | | will close the purchase transaction yourself and close |
| purchase price plus your wholesale fee. After closing | | | | your re-sale transaction immediately thereafter. This is |
| you deed the property to the private lender. You | | | | not a preferred way of flipping REO's because it can |
| receive your wholesale fee through the closing | | | | be difficult to controle the transactions, and you may |
| because the private lender funds transaction for more | | | | be required to use "transactional funding" to close the |
| than your purchase price. | | | | purchase independently from the resale transaction. |
| 3. Partner with your end buyer. You can execute a | | | | 7. Syndicate your REO flips. Syndication is a common |
| partnership or joint venture agreement with your buyer. | | | | way to work with partners in commercial real estate. |
| It states that you are buying the property together, in | | | | Your partners will fund the deals that you bring into the |
| the name of your end buyer. your end buyer agrees | | | | syndicate. The syndication can be structured so you |
| to buy you out of the JV at closing for a set fee | | | | get paid off once the deal closes or you can remain in |
| which is your wholesale fee. | | | | the deal for long term profits. While real estate |
| 4. Use an entity that can be taken over by the end | | | | syndication is widely used in commercial deals, you can |
| buyer. You can buy the property in the name of a | | | | apply the same strategies also to single family or land |
| new entity such as an LLC. Your end buyer can buy | | | | investing deals as well. |