REO Search
Hey, everyone. Happy New Year to you All!!
What is the best route in identifying banks that are willing to work with investors? Many of the bank that I have contacted work exclusively with Realtors instead of investors.
Some banks use to sell REO's directly to the public. But then a few enterprising loss mitigation reps started accepting bribes and arranging "sweet-heart" deals for friends and family. These banks have found it easier to just list the property with a realtor thus reducing the chance of fraud.
You may still find a few small, local banks that sell directly to the public. But this is more the exception than the rule.
Hi there,
This is very true most banks sell REO's through Realtors, but they can still make a good investment . Most Realtors try and list the property very near the market value, but I have found that they will accept less, particularly if the property sits on the market for a while.
If you locate any banks that sell directly, let me know.
I noticed that even local smaller banks will list their properties with a Realtor.
Thanks, everyone!! If I fine a bank that will sell directly to investors, I will be all of this site!!
ChicagoKalo,
Have you considered pursuing REO's through a Realtor? If so, how would you proceed? Just curious.
If anyone else has REO by Realtor success stories, let us know the details.
Realtor REO success story. Saw 2/2 condo in MLS. Looked and liked and tried to make offer of $27,500 for the list price of $29,900. Was told there is contract pending. Fell out a few weeks later and Realtor called me. I wrote offer at $28,000 on 1/1/04. Accepted on Monday. Tax value of $48,000. 1993 original loan $56,000. Bid at foreclosure sale of $51,000. Ordering appraisal Tue. Already approved for hard money loan subject to appraisal. Should close 1/21/04 with 0 down. Fix up of carpet/tile and paint and h2o heater. Should net a quick 10 grand. I could have asked Realtor for 50% of commission but he will bring me more deals like this if he gets paid well for his service. What a deal for me. Looking for 100 more. I hate condos as rentals but wow what a great deal to rehab and resell.
Good LUCK and Thank You
Hope this helps some
Ted Jr
A 2/2 condo for $27,500! I'm gonna be sick to my stomach.
If I tack $100,000 to the price it will be in the ball park of what REO 2/2 condos are going for here. I've gotta start investing in Nebraska.
my experience with reos is that it's best to just use the realtor - the time you spend trying to find a bank to sell to you directly could be used better. time is your most limited comodity. and for finding some of them, try www.google.com and type in "reo" or "bank owned properties" and shuffle thru the results. they're in there!
also, i usually see them at fmv and not willing to discount heavily (10-20%) until they've been on the market for 4-6 months. THEN you can wheel 'n deal with them a bit.