REO Offer??
I was wondering what motivates the bank to deal with an investor that will typically offer like 70% of the market value of the home than rather list it on the mls and get 90% or more? Also what price will the bank offer the
REO? Will the price just be the amount of the loan plus any back payments or will they try to make a profit and get what the home is valued at today? Lets say an REO has a loan amount of 225K, a FMV of 300K, and 10K back payments. What would a bank want for something like that? In case like this would an offer of 200K be about where I would want to offer? Also If I am able to put an offer on a REO before it hits the mls, would they be willing to consider my offer at all??
I was wondering what motivates the bank to deal with an investor that will typically offer like 70% of the market value of the home than rather list it on the mls and get 90% or more?
Speed and rehab, if you can show that you are going to be the fastest and cheapest way out of the mess they will go with you.
Also what price will the bank offer the
REO?
You dictate the price
Will the price just be the amount of the loan plus any back payments or will they try to make a profit and get what the home is valued at today?
Thats up to you, you need to show them its not worth it.
Lets say an REO has a loan amount of 225K, a FMV of 300K, and 10K back payments. What would a bank want for something like that? In case like this would an offer of 200K be about where I would want to offer?
Obviously they want it all and more. Your job should be to show them that it isnt worth that and to find out the least they will take given the poor condition of the house.
Also If I am able to put an offer on a REO before it hits the mls, would they be willing to consider my offer at all??
Of course they would. The kicker is that you need to find out from them (given the condition of the house and the realtors fees) that they would make more by dealing with you, or that they would get a faster return of there monies dealing with you.
Good Luck,
Kyle
This article should help as well
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=248