Bank Owned (REO)
If the bank owns a property I’m interested in is it acceptable to make an all cash offer to them for less than what they are listing it for?
Ie. Listed for 150k, offer them 110k cash?
Anyone know what’s involved with that?
Absoulutely, I would contact the bank and find out their pocedures for making offers and then go from there. Also, sometimes if you are going to ask for a discount, you might want to send some type of justification for the low price...ie. needs a roof and send picture..you can also ask them for a Short Sale Package from their Loss Mitigation Department. Good luck
There is alot involved in these REOs feel free to PM me. I have dealt with several national banks. You are only making an offer that is 73% of listed price. I think most banks will laugh at that kind of offer. There are alot of variables that play into an offer and what they will take. I would do a search and find out what is still owed on the property and go from there. Like I said feel free to send me a PM if you have more questions.
Aaron
The important question is who is the proud owner-bank. Why? Because many banks do not deal in REO directly with the public. Those banks have a drain system built to disseminate distressed properties to predetermine realtors who'll make sure that the bank gets the most bucks for their bangs or they get replaced.
And that is where the whole thing becomes tricky. If the property is represented by realtor, you might as well let him help you instead of risking to lose the deal while trying to apply TCI knowledge. As you'll find later, one of the greatest problems in this biz is finding what section of RE do you want to concentrate on. Try to learn everything and you might end up buying nothing, long enough to lose the will to continue this interesting game of monopoly.
Should you be discouraged? Not at all. Just keep your eyes on what counts the most: The profit. Focused on your goals and focus on your results.
Good Luck!8-)
Yeah most of the REO properties I'm looking at have realtor contact info listed. I guess my next step will be to contact the realtor and see what they have to say.
Thanks!
It is also my experience that REOs are listed with a real estate agent and that they are the only one that has contact with the bank. You can certainly make a low offer. It would be helpful to include a list of repairs, etc and possibly photos. I am not sure if the realtor would fax in the extra stuff or not. I typically put a note in the contract itself that it is subject to Exhibit or Addendum A or such so that if they do not receive the extra paperwork they will request it from the realtor.
GOOD LUCK
Just ran across another property.
Help me understand this.. I think I have it but not 100% sure:
Looking around in public records a Deed of Trust went out to the bank for the sum of 99k on 6/03
Later on down the road (10/03) I see another deed of trust to another company for 67k.
There is also an excise tax affidavit for the 67k on 10/03. To me it looks like company X bought this property on the courthouse steps for 67k
Now it’s listed through a realtor for 245k. I’m going to contact the realtor today and ask to see the place this weekend.
Now all things considered and seeing that this company acquired the property for only 67k. Do you think it is reasonable to offer this company 160k Cash for the place?
Heh I thought it might be worth a shot…
Some of the smaller, local banks can be dealt with directly. Keep looking and after a while it will al fell in place.