OfflineI am new to Real Estate investing. I am getting my feet wet with REOs. I have a friend who is a loan office for a local bank. The bank has been holding a dairy farm for 18 months asking aprox 2.2M. I tried to negotiate a % (finder’s fee) with them and they got very skittish because of real estate laws in Iowa. So we have been marketing the property for 3-4 months and had generated more leads for the bank then they received in the previous 15 months. So things are going well but still no production.
Issues:
1. I don't have a buyers list.
2. If I had a buyers list... who wants to buy a dairy farm?
3. I don't have a signed deal, but a verbal... does that count? I trust the people that work at there and their offices (small Iowa bank).
4. I am getting impatient, how long do REO deals take to close?
Does anyone deal with farms at all and have any advice?
Thank you for any advice or comments!
Shea
1 & 2) Even if you had a buyer's list, chances are they wouldn't be interested in a dairy farm. However, you never know when "someone knows someone who knows someone!"
3.) I would trust a bank more than an individual with a verbal agreement. However, in any case, a written is preferable.
4.) Depends on the deal. A dairy farm- probably quite a while!
***I would suggest visiting your local USDA office and network there. I grew up in agriculture and the people who work in the local office know who owns land/farms, how much, and word of mouth here would be priceless. That's what I would do.
Good luck!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Sheila,
Thanks for the tips I appreciate your response.
Thanks,
Shea