REO'S

Hello Maximilionalpha,

REOS can vary by each bank. Some banks list REOs for sale with real estate brokers/agents, other banks sell them at auction, or some small local hold them in house and maybe try to sell them on their own. Contact a local real estate agent in your area and ask them to run you a report of all the "REOs" in your desired target area.

Most real estate listings have the "REO" in a comments section of the listings. You can also check you local paper for auctions and even contact local banks and inquire who their "REO Asset Manager" would be. This will get you in contact with the right person. If a REO is listed through a real estate agent, then yes you can submit an offer and a p.o.f. letter. The longer the bank has the REO the more motivated they may get. Also, a bank's motivation can change on a daily basis so submitting multiple offers over a few weeks can increase the odds. I hope this helps. Believe and Achieve! - Joe

Yes, I've found myself an agent and has had him e-mail me multiple REO listings that fit my search criteria. I've also got another realtor in a different part of this state that's on vacation and when she gets back is going to e-mail me REO's for her area. Monday I'm giving my agent a list of 30 of the REO's that I've decided to bid on, so wish me luck on winning a few.

Have a good one!

Way to go and that is so great you are taking action! Congratulations on working your plan and moving forward with REOs. I do want to wish you luck on all your offers and if you get 1 or even 2 deals this will jump start you with even better things to come. Please keep us posted on any updates or developing deals. Believe and Achieve! - Joe

Good luck! The more you submit the better chance you have of getting them accepted. Keep us posted.

Jeremy

Hey Max
Tell your realtor to look for REO's that no one bid on (no one wanted). After a while the bank will really take a big discount on these.
Sissy

Can anyone tell me exactly how to go about submitting my bids on REO's. I am assuming that you just wirte down the MLS# and how much you're bidding on the property and send it to your agent. If I'm wrong, then please give me your help. Thanks!

Let your RE agent know which MLS #'s you're interested in placing bids on. Give him/her that information. Also give them the amount you willing to bid (not your maximum amt though). They will fax you the require forms to sign or you can go into their office with that information. He/she should let you know what the escrow deposit amt will be when he/she submits your bid to the other agent handling the property for the bank. Above all things else be patient they may or may not have other offers on the table for that particular property you're interested in if it's in a desired area and it requires little or no cosmetic fixes.

I've just received the contract from my agent as to what it will say. I've decided to put it here for the pro's feedback on it's verbage, before giving my agent the go ahead on it(I stated the contingencies)He said beforehand that he had drawn up a contract with contingencies already in it, but I told him that I was e-mailing him over MY contingencies(guess his were a lot different than mine, because I don't see his anywhere(lol).

Let this letter act as the intent to purchase (property address), mls #. The reason for this letter is to allow for an expeditious offer to purchase the aforementioned property at ($) without the future consideration of a counteroffer. In the event that the following terms and conditions are acceptable to you it shall be rendered to a Standard PA State A/S-R Contractor.

Please note that the intent to purchase is based upon the following contingencies, and it is in no way a legal, binding document:

*

contingent upon a home inspection to the buyer's satisfaction
*

contingent upon buyer's suitable financing
*

contingent upon a clear title
*

contingent upon the fact that the seller understands the buyer will be reselling the property for profit and/or selling the contract of assignment

If the following contingencies are acceptable please contact Edwin Tichenor directly. If they are unacceptable, I apologize for the inconvenience yet appreciate both your time and consideration concerning the matter.

Regards,

Edwin Tichenor

Max the bank will never consider this type of offer. It is almost impossible for a bank to allow you to assign a contract. You can do double closings on REO's but you need costalfunding.com to loan you the money for a fee. That is how I am trying to profit of REO's. You also have too many clauses that are not necessary. I would only use the "home inspection" clause and try this new one out "subject to aproval of buyer's partner". Your partner can be anyone including your buyer. Good luck!

I have to agree there are way too many contingencies in your contract. I think you should have had the title checked out before submitting your bid (do this only for those properties you're seriously interested in pursuing to save time and money due to cost of having title company search title). They (bank) don't need to know that you're purchasing the property with intent to make a profit (don't give your hand away in the deal ) Also another time saver; satisfy inspection requirements (on those properties that you're serious about) before submitting the bid. Partner with a property inspector to have them inspect the property before hand before submitting your bid so that you have the upper hand. That way you're not wasting time on a property that's way over your head (knowledge wise) & capital investment needed for rehab. Leave those for someone with know how and funds to sacrifice to do so. Are you working with a RE attorney who can look over your contracts for you? If not, partner with one to CYB. One last thing, appraisal, appraisal, appraisal; you don't want a property with negative ROI.

So many small things overlooked and too many big things disclosed(my financial intentions). Well one good thing about it is that the contract is just a rough draft and not a final copy. That's why i chose to put it here for the more wiser ones opinions. No I don't have a RE attorney(does it cost me anything up front to have one?) What about the property inspector(does it cost upfront?) Any other important details for me? I'm all ears. I'll tell my agent to hold off on the submittals until I do my homework on the properties.

You'll have to pay RE attorney (or their paralegal) whatever amt they charge per hour or other cheaper alternative is work with RE broker who has earn your trust, to look over the documents and explain anything you don't understand and also to make sure the contract is in the appropriate legal RE language so that it can't be challenge in court if there ever were to be claim in potential lawsuit. Some home inspectors will charge you up front, others will be willing to delay their fee until closing. Keep in mind some properties you're going to have to move quickly on before you have the facts. Just wanted to give you some helpful tips to save your sanity when dealing with these banks. Don''t let my advise slow you down from doing your thang.

Well that's pretty costly and I'm kinda bullheaded(lol). That reminds me of when I was fresh out of computer school. I had just finished learning A+Plus with WAN Administration. The first computer that I went to work on was my sisters computer. She didn't let me touch another computer of hers for years to come(lol). Yeah, I destroyed it. But, during that time in between I've went on to fix 100's of computers and now build them as well(I love building gaming computers). Well the reason I tell you that is to say that I've got to learn from my mistakes because if I don't then I'll never be able to handle the down falls when they do come at me if I become successful at doing this(REI). Plus I don't want to do birddoggin. I want to jump in head first!

word it just the way it is written , that's how I am doing it. The other clause I have it worded like this, "Offer contingent upon verification of buyer's estimated repairs pf buyer's contractor, within 14 days of all parties signing agreement of sale and addendums". That is exactly how my Realtor wrote it on my first contract that I am looking at. You can word "offer contingent upon aproval of buyer's partner", well you get the idea. Later.