I need advice, please.
I am working on buying my first invesment property and I am looking to buy a property own by a lender REO. I was hoping in at least getting the property at a 20% discount, so that I will have room for repairs and profits. Am I on the right track, is this the way it usually work or should I plan on paying a little more money for them. I did read on real state books that if I plan on buying a property to fix an resell I should buy at at least 20% below market value otherwise there will be no room for profit.
Thanks
mcaballero,
Happy Thanksgiving. Don't get caught up in exact percentages and numbers. Make an offer and see what the lender says. If you are going to do rehab work, are you paying yourself to do the work or subing everything out? Most REO'S are very negotiable. If the property has been on the market for a while I would ask myself why no one is making any offers. But if you have checked the property out thouroughly, then make an offer as low as you can. The worse thing to happen is they say no. The best thing is they say YES! Good luck.
Thanks for responding TJ, I will be doing the work myself. The property is fairly new so there is not a lot of fixing to do. I found this REO out of a Web site that I subscribed to, they encourage you to go through them to get an offer to the lender but may be I should try to get to the lender directly. What's your opinion?
thanks, and Happy Thanksgiving to you as well!!.
They web site would say to use them for 1 of 2 reasons-
1- they make money off the transaction
2- they have realtionships and a reputation with lenders.
I would guess it number 1.
Go to the lender yourself.
my .02[ Edited by skyboy on Date 11/28/2002 ]