RE Agent Question
Hello everyone,
I just came into contact with an RE agent who is itching to deal with an investor. He tells me he regularly comes across properties with some or all of the following attributes:
Starter homes, 3-4 bedrooms
Owned by bank or mortgage company
Vacant
"Fixers"
Asking price at least 10% below FMV
The reason he is itching to deal with an investor is that most of his clients don't really care about these houses because of the need to do some repairs. Now, the banks and mortgage companies are only interested in unloading the properties, and they may be flexible on the price, but not the terms.
My question is, how can I squeeze myself into one of these deals? The way I see it is that options or lease options are out of the question.
How can I take advantage of this type of situation without having a lot of cash or having my credit pulled?
Basically I would like to know if there are any creative ways of doing these deals.
Thanks
Slimjim[*]null
The only to keep from getting your credit pulled on these types of deals are:
1) Have cash, an equity line or the like to pay for the property
2) Have someone else's cash, equity line, or credit to pay for the property.
REO's, or bank owned properties, don't lend themselves to "creative" type offers. Banks want straight simple offers. Cash first, pre-qual financing second, and all others a distant third.
Roger
Try asking Schenectady agent Dawn Vann, A-1 REO Services for guidance if you're looking to invest locally. She currently has about 25 "active" REO listings and should be able to point you in the correct direction. (Google "A-1 REO Services" to find her website.)
As for the agent who's just "itching to deal with an investor": do yourself a favor and let someone else break the agent in. There's very little training available to agents who are wanting to focus on investors and most are forced to wing it. Being a newbie yourself, this is quite risky.
Depending at what location is the itch, this broker ne saleman may be your boy.
Just because you are new to TCI does not mean you are new to the world. I assume you can read him. So play out the lease and let him sniff just do not let him raise his leg too far.
REO's require somebody to put up money and at this stage of your game it is better to stay solo for awhile. In time you can associate with the elderly money supplier who will take a large portion but chalk it up to experience and then having gathered enough nickels take the accumulated pile and play your own game.
Besides its fun. Itcy brokers yip Lucius