Bank of America REO

I write contracts for BOA REOS when some falls within my criteria, however I have not purchased anything from BOA. I have come close only to get out bidded. I have a BOA property I will be writing up tomorrow.

Depending on how youre funding your deal, some other investors can afford to pay more than me.

Thank you for your input. Was not sure how it would be to deal with one of the "big boys of banks".

Dont be intimidated, know your criteria and make the best offer you can afford. Know your number and stick to it.

infact,one property they accepted our offer & during inspection we found out the roof replacement was going to be several thousand more than expected, so we had the agent submit the roof proposal & BOA came back $3500 less to offset the expense.
It was a quicker closing & less grief than dealing with a HUD property!

Very difficult to get a good deal from any bank. They run silent auctions, meaning they will not respond if they don't like your offer. They play the waiting game by holding out to create a bidding war. You're better off to avoid bank REOs and concentrate on other private parties.

After all, the banks are in the business of making money. They wrote the book on REI.

When it comes to good deals, REOs & short sales way out number private sellers.

I agree with Gary 100%. I think you need to have your REO/Short Sale offering systems in place and up and running first thing. Like Gary said there are WAY more of these properties to offer on. For new investors they are the best properties to look at and evaluate. There are plenty out there. They are easy to find and learn the local market place from.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Perhaps where you are, but in So Cal and other hot markets, REOs are never a good deals. You are dealing with professionals, how is it that you can get below FMV? They usually set the listing price more than the FMV. In Las Vegas, where the market is flooded with REOs, the response time for an offer is unusually high. The banks don't need to respond if they don't want to.

In my opinion, another scam is REO auctions. The bank reserves the right to refuse the highest bid. In other words, you might win the bid but only to get notified later that the bank has refused the bid amount. It's not unusually to have the property reappear in the same auction after the bid has closed.

I would rather stick to private parties who are serious about selling.