Deals with REO?

Are these props already in post foreclosure and if so have you tried talking direct to the bank about a short sale. It seems if you have $$ people behind you and the banks have already taken it on the chin as far as going thru the whole foreclosure process, you might have some leverage with the bank since they already have money gone down the tubes. If they have not gone thru the process of foreclosure, have you talked with the owners the props. Just a couple hints, I don't know if it helps...Jan

i saw a post yesterday that mentioned double closings...where u close with the seller then turn around and sell the property you just bought...could u possibly do that with and REO?

Jan,

Thanks for the insight. Yes, all of the properties have already been seized by the bank. The reason I had that concern is that I have frequently heard, even in Dean's book, that it might be better to steer clear of dealing with realtors. Take for instance this ACTUAL scenario: 8 bdrm building, 4 ba, 4224 sq ft, built in 1985, comps $250,000.00, zestimate $222,000.00, asking price $155,000.00. Even not being a real estate expert by the stretch of any imagine, I can tell that if that property is in good or even fair condition a deal can be made here; after all using the lower zestimate appraisal we are looking at an instant equity of 70%! And since there is always room for negotiations in RE, that profit could go up even further. People, I have the will to do this, and I know it is possible, but I currently lack the know how to deal with realtors in such cases. Even yesterday, I called about a property I noticed in my local paper and one of the first questions posed to me was whether or not I was prequalified for loan; something which is impossible with a credit score of 567! Oh did I mention that the person on the other end was a realtor? lol.

Any advice is welcome.

Thanks.

I see what you are saying about dealing with the realtor. Hey, this is not a perfect science yet, I think. But in my mentor program in one of the audios they teach when someone asks you about $$$ your reply should be that I have partners that take care of that part of the business, which is what you said in the start of your post. Is there a way you can get pr-qualified by a mortgage broker?? They are screaming for business now. This way when a realtor asks you if you are qualified for a mortgage, you simply say Yes, so lets get down to business. We are all very new to this business, but it sounds like you are pretty serious about this which is good. I myself am trying to work 2 deals at the present, and the more i get into it, the more I want to go and go. It is a rush, believe me. I hope this helps. Please keep me in the loop with your progress. Good Luck...Jan

Is it possible for you to get a "commitment letter" from a hard money lender saying they will lend up to a certain amount of money? Elena and I were talking about this today, and we were trying to figure out a way to get around the pre-approval letter for people with low credit scores. I have been putting offers in on a lot of REOs myself, and have recently bought 3. I know that after you get an offer accepted, the bank that owns the property wants to see a commitment letter within a certain number of days. Would that be enough time to get one from a hard money lender or investor, I wonder. Do you know for certain that you would NOT qualify yourself? If you could get a pre-approval letter for yourself, you could just keep re-using it for one property after another, with investors maybe doing a double closing with you on each? I think mike131 mentioned that too.
Sorry if I'm sounding complicated. It would be great if there was a good way around this. Anita, have you posted something before or remember anything from the book or course?

Rina

P.S. Hey, Jan. Good job on the 2 deals!

Are you saying that some investors could give one the guarantee via a letter that the funds are available and the banks would accept that? Some elaboration would be surely appreciated..

Thanks.

I'm kind of wondering out loud. It wouldn't hurt to ask. I asked my realtor today if that would be an option for getting offers taken seriously on REOs and she thought yes. It might be something worth pursuing. Maybe you'll be the one to actually find out the answer.
I'll do some more asking. I looked at an REO today 3/1 dropped from $59,900 to $34,900. I'm debating doing some interesting offer just to see what reply I get from the bank. Good one to test on. (Although it would be a good one to make sure I get, too.)

Keep us updated on what you find out. We'll do the same.

Thanks,

Rina

Like most people here, I am very eager to get my business going. And like many others here, my biggest obstacle seems to be finance; after all that's why we got involved in such a program (js). Undoubtedly, real estate investing has been tested and proven to be one of the greatest and safest ways to invest. I am convinced that if I had guaranteed financing lined up that it is very likely that I might have a deal in the making or probably even made one already. That's the kind of hope I have that this could work. Believe me, I brainstorm tirelessly about ways to go around traditional lending behaviors. With that said let me present another scenario to you smarties out there. Who knows: someone might be doing this right now!

I talked to an interested partner (investor) in Califonia three days ago (I actually did). Let's call her Sandra Dollar (js). If we refer to my earlier post about an actual REO I saw in my neighborhood and consider for this situation that Ms. Dollar thinks that I have done my home work and she is willing to go through with the deal. Now initially, when I approached the realtor working on behalf of the bank, she staunchly requested that I presented proof of funds via a letter verifying that the cash would be available if the deal goes through. Within my learning that I have to present proof of funds, I contacted Ms. Dollar about the situation. Sandra then furnished me with a letter stating that she is willing to lend me $110,000.00 (which is what I negotiated). Now let's suppose that I actually find an investor who sees a great deal and understands that a rookie Bird Dogger, like myself, has no way to lock up that deal, wouldn't it be in the best interest of that investor to do everything possible to tie up the deal? Let's also suppose that the bank is adamant about not doing an assignment, can anyone think about a legal and safe way (where the investor is confident that her monies going through me would be safe and that I have no Enron habits? now lol!!) Do you believe that any investor (having in many cases never met the other party and in lots of cases leave far away from each other) would be willing to take risky chances with their money? Is there a way where-by the monies can go though me as a third party, appears to be mines, but there are stipulations as to my spending it for something else other than it's SOLE purpose?

Folks, I wouldn't claim that the above is thinking outside the box; I'm just brainstorming with my fingers (js).

Thanks.