REO's In Mass.
What are your most successful tactics in dealing with banks & their REO's? I find them to be extremely secretive in this area, one might think that they possessed the secrets of immortality. Is it worse in this area (Mass.) than in others around the country? How do you successful REO investors get the good info? I know that dilligence is the key to all deals but I feel like I am nose to nose with a brick wall and i'm getting bloodied. Rarely are bank REO's identified on the local MLS (I have my own subscription). I've tried a couple of brokers that I know (I know several) but most have little info regarding bank REO's. All advice and comments welcome and appreciated. Thanks.
Glass Joe;
I feel for you, I am in Mass and have the same problems. The REO depts. are hard to deal with. They usually have an agent and often work thru the same agents. The agents usually determine list prices which are all too often way out of wack. Then the bank REO dept. determine a min acceptance price based on the agents numbers and they won't budge for awhile until many investors make offers and they finally figure out that they can't get even close to asking price. Their P&S contracts suck, and if you make a cash offer they want proof of funds. I have made offers within 10% of asking in rare cases and sometimes they don't budge. They tell me they have a min they have to meet or they need approval from the board which only meets once a month. They are usually not bluffing because I have walked away from offers based on this. I even provide them with a letter stating my offer and how I got to the number and why its a competitive offer, and that doesn't usually work either. I have even had cases where they tried negotiating with me to raise my offer, I did not raise it and they turned it down. One month later they sold it for what I offered. My offer was cash so I know it was not a matter of terms. I think it was just being in right place at right time. The bank finally decided it was time to sell and to accept an offer.
TBARBER
TBarber, thanks for sharing your experiences. At least I know that it is not just me.
Have you been working with a broker who has the scoop or have you been contacting the "man" at athe bank to dig about the inventory?
Try contacting the banks personally and asking for the REO Department. I have done that and have had some luck. You have to find a way that works for you. Some banks don't even let you know of their REO's as they have their own private investors that they deal with. You have to make these folks talk to you. Good luck