Banks as matter of course, won’t let you “tie up” a great deal and flip it to another investor. However, there is a work around for that!
Bank foreclosures are flooding the market and banks are discounting prices to get them off their books. We started using this method to move loads of bank foreclosures to investors for great cash flow!
Guess what? It’s not hard. (by the way, this is a huge service to the economy, it injects badly needed cash into the system, it’s win-win-win). It takes some persistence tracking the bank properties, but getting a great deal in this market is not a miraculous feat. Then, you need a hungry investor, also not hard.
After that, the technique is very simple, nuts and bolts. Simply tell the broker to write the offers as, John Smith trustee for the Elm Street Trustee. When you get a honey of a deal accepted by the bank, you immediately notify your buyer.
You grant ownership of the trust to the buyer, so you don’t have to change A THING with title- you don’t have to tell escrow, the broker, the bank, anyone, because you aren’t assigning the contract, you are assigning the trust! Make sense?
Your buyer puts the money in escrow, hands you a check for your work, and it closes. No, you don’t have to sit down with 8 guys in suits at a big circular table to make a trust. In fact, you barely have to do anything. A trust is simply an agreement – ours is a 3 pager and takes about 3 minutes to fill out.
After escrow closes, you simply deed the trust to your buyer (since you are the trustee, you sign everything). We’ve done it many times, and it works incredibly. We’ve even had a buyer flake out, and immediately replaced him with another buyer without a single problem. Try doing that in the middle of escrow with a bank ….talk about a federal case. The nice thing is that you keep total control over the transaction!
Watch our webinar “How to wholesale without double escrow, using a land trust”
Please give a few minutes to load, as this is a large video file…
Please get the documents here: