Need ADVICE on REO!!!

BB - congrats on finding a nice place! Regarding your questions, in reverse order:

1. Contact: most likely the bank has hired an agent to market it and the offer will go through that agent. If you found it on a website, there should be contact info if it's for sale. Alternatively, check at the property itself as there may be something posted there.

2. Offer: if it's an REO, 99% of the time you'll have to use their contract with no alterations. You should be able to check the standard contingencies (inspection, about 5-10 days), financing (30 days). They may ask you for a pre-approval or POF letter at the time you submit the offer. Once accepted, they'll probably ask for $1,000 earnest money deposit in the form of a cashier's check.

Everything is negotiable, so it can't hurt to haggle on any of these terms. It depends on the bank. However, they tend to be firm on not alternating their contract and also on not assigning it. But you can get a great deal on the price.

Good luck and let us know!

- Tom

Hey thanks Tom what exactly is a POF? do you think it matters that I have bad credit? I know I can make the payments no problem but from Dean's books I didnt think that this would be too much of a hassle.

POF = Proof of funds. you should talk to a mortgage broker and get approved for a loan before making offers pending a mortgage.

Ughhh! Im a bit discouraged Dean's book made it sound like anyone, no matter tgrir credit could walk in a buy an REO because its a,loss to the,bank,regardless, so they want,it gone.

Deans book is teaching you how to wholesale properties. And the reason wholesalers are getting these killer deals is because the average joe without perfect credit cannot buy. Are you sure you know what the book you bought was about? You sound like you are looking for a home for you and your family am I wrong? This site is mainly based around the theory of wholesaleing properties not buying them to live in anyone can WHOLESALE a property regardless of credit and no money down that is 100% true but I'm sure his book does not say if you are trying to get a mortgage on a reo you can do it with bad credit.

Also just wanted to add you should consider wholesaleing it will make you enough money to build your credit up and save up a nice downpayment. There is a course by Philip Tyrone called 7 steps to a 720 credit score and it's great it will teach you how to make your credit good fast! Wholesaling properties is a great way to make money in real estate with no money and terrible credit!

Usually with REO you need to buy them with cash. ,ost of them you can not even get a CO. Very different ballgame when it comes to buying a REO. The rules and the offer/bid are different than a regular home for sale.
Raymond

Thanks for the advice i was thinking maybe i could sell a couple of REO properties real quick for some cash to put down on that REO...hmmm any thoughts?

you may want to fill out some info on your profile so that other investors on this site can know a little about you, what your goals are, and where you're from so that they can network with you....

Regarding the REO's that you want to buy and sell, what exactly do you want to do? Have you read DG's book, "Profit From Real Estate Right Now"? it will help you understand how to flip a property, and other strategies as well; if you want to wholesale, then read DG's newest book "30 Days to RE Cash"

Hello everyone!
Gonna need some help on this one...i found a beautiful house, and by beautiful i mean the situation is perfect. It is a 2bd 1bath, little house but it just so happens that its an REO, and its listed at 69k, my GF and I are looking to move in together and i thought this place would be a great buy for us and our dogs at least until we finish college and get married.
So here are my dire questions that i need so answers to:
1.) I have an offer in mind that I want to present to the bank but i want to sound as professional as possible but i dont know how to present it. Is there a sample offer anywhere that i could cop and screw into my own? Concerning REO's?

My Reply>> BB, If the property is listed for sale it is most likely listed with a Realtor. Call the Realtor directly to make your offer. Make sure to run the comparable s or have the Realtor do it for you. You want to make sure you are getting a good deal. Just because you may be living in the property and you like it , make sure the numbers work as you will be selling it one day .There is nothing to screw up... you just give the Realtor the magic number

2.) Im going to look at the house this weekend and its and REO, who do i need to call or contact on owenership of the house since the bank isnt listed on the website where i found it. City hall? hall of records etc?

My reply> You just need to contact the listing agent. Good Luck!