OfflineI need help finding end buyers for REO's I don't know how to find them here in Fayetteville AR. I have everything else down but I need Buyers! Any Ideas?
Thanks,
Bryan Smith
__________________
HELP! I need REO Help
Posted on: Thu, 11/04/2010 - 03:37
Advertise your REO deals that you can offer at 70% of ARV after repairs. Try craigs list, ebay, local papers, REI clubs, cash buyers listed at the county ETC. ETC. What type of buyer are you looking for? I assume rehabbers? If you are offering on REOs that are in good enough shape to go to the owner occupant you will have a hard time getting a deal.
Do you have the proof of funds you need to make offers on REOs(a must) They also require earnest money. You said you have it down, so you know how to determine what actual ARV is and do accurate repair ests. so your offers are at 65% of ARV, maximum? Witch REOs are deals for investors? Not all are.
To get proof of funds and transactional funds for "flipping" REOs go to:
http://www.mdtfcam.com
Good luck on the REOs!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Are you assigning the contract or doing a double closing? Is the property locked up already? It will help.
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Why is it a problem if you have an REO in good shape, vs. needs repair, why is hard to do sell to an owner occupant?
I put in an offer on Friday, my first one, the home is owned by brothers wanting to sell the parents home. The FMV in $128,600 and I offered 50% less. House needs some minor stuff, had an est. of about $6000, that included the roof. I ran it on craigslist, before I even know if the offer is accepted, and did get calls. Would like to just assign and make anything for my first deal and the experience, and still thought of PML to fix and flip.
But why would the REO buyers be different?
If you could explain, would appreciate that, because I have tons of REO's in my area too.
Sandi
but what you are selling. REOs are controlled by banks therefore you cannot always get the numbers to work. I'm in CA and if you plan on wholesaling then you need to be picking up properites at no more than 70% ARV minus repairs and then wholesaling it for around 75% ARV minus repairs. I can tell you that in the SoCal market there are not a lot of investors wholesaling REOs because the wholesalers cannot get the numbers to work. Instead, investors are going direct to the listing agent and buying the REOs at 75% of the ARV minus repairs and sometimes even 78%.
Kimmy
so what that means is that if Bryan is looking to make a deal on an REO that is in good shape, purchasing the property at 75% from the bank, is hard to do?
Is that right?
If it needs repair, you have a better chance of buying it cheaper and then selling to an owner occupant would make more sense.
But even then after arv you may not make much.
I am in Wisconsin, and have looked at some REO's but haven't purchased any, however I have found some good deals, just don't have money to buy and hold, so I just assign for now.
Thanks for the info.
Sandi
the properties the more money the bank will want. Banks are getting savvy to investors and they have set guidelines for pricing based on condition and what the BPO comes in at. As a rule of thumb you always get the killer deals on the ugliest houses.