OfflineThe last few weeks a DG member and I have been working with a couple of different realtors. They know we're investors and we explained what types of properties we're looking for. They've shown us a few REO's that need minor to moderate rehabbing. We want to put in lower offers because of the work and they clam up. They keep saying "Well there are other offers that are higher that the bank hasnt got back to these other people on. Also the comps in the area are showing that houses are selling for around this price."
Ok that's all great in a perfect world. But why on earth would I buy a house that needed repairs at FMV price. That would mean I would have to re-sell the house HIGHER than FMV to recoup rehab costs and God forbid make a profit. These Realtors dont realize that and only think about the commission they can get now. They also dont realize that REO properties cant fetch FMV prices because quite frankly, they're still over priced in my area. And there are still some idiots who are over paying for properties and the Realtors would rather chase after those few that they can hit a home run with on the price.
BRE #01956371
you are soo right.
stand your grounds, "No-Quarter"
if they don't meet your needs, "Fire" them....
I have gone through enough realtors, to last me a life time.
I have found me a great realtor.
hope you can too~!~!~! ?
Happy hunting...
Robert
Alaskan Success,Inc
I should add a little bit more to my story. The funny thing is, when a Realtor is telling you that there are "other offers above asking price", I always shoot back with this question. "Do they have any intention of closing or can they close?" The reason for this is because I do have cash backing for my cash offers. But the Realtors still want highest and best and its no wonder that a lot of these homes are sitting on the market and the banks drag their feet and dont seem very motivated to sell.
BRE #01956371
Hi DJ MArio; When it comes to REO's, I try to go the the bank that ownes the property. I myself have dealt with the listing agents famous line "highest and best?" and it seems to me like the higher the offer the higher the commission. you are right, these properties sit there for month's and month's because in my opinion, the re agents BPO's are to high and some of them are too greedy. Anyways most of the time I have good luck going directly to the bank and at least contacting the asset manager, submitting an cash offer with a copy of a check, that way , they the bank know I am serious.
What doesn't kill me,,makes me stronger!
offers weren't put in either. From what I'm learning the BPO's are sometimes coming from banks in a different state and they don't know the market where the property is.
Lea
SPR Property Solutions, LLC
DJMario,
You are right about THOSE realtors. I agree with Roger. Fire those realtors you dealt with and stand your ground. But even Roger found one realtor to deal with.
Don't give up if the majority of realtors don't get it. Find one who may or may not understand, but will do what you ask. He/she may get it when you start making money. And then, too bad for those who didn't jump on board with you!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
I was looking at a property that was listed at 202K. My realtor (a different one from the above mentioned) had some info that the property was taken back by the bank at 161K. So I said that I would probably offer that or less. But she also mentioned that they are probably trying to cover their foreclosure costs. So my partner and I thought about it and the repairs were going to be a little high. All of a sudden the price was reduced to 155k out of nowhere which is HUGE. So we are going to proceed with making an offer and I have a contractor going over today to see what repairs will need to be made.
So the moral of the story is, no matter what people say the banks will deal. Realtors wont tell you the whole truth but with this paticular house, I think the banks are starting to get motivated.
BRE #01956371
I currently have a group of investors that my business partner works with. What I am looking for now is REO's so that we can present these to our investors. I have been told that it is difficult to get REO's from the bank and it can take up to 2 years to get. Anyone have any suggestions on how I can obtain these? I am in the South FL area which is ideal for this situation.
The house I am buying is a short sale .... I guess I got lucky , as the bank that owns the property jumped at my offer and closing is scheduled the end of this month... My first deal !! Yipee !!!
Banks need to realize that we investors are taking these REOs , ( which are losses to them ) off their hands... I think they are starting to get that message !!
Good luck to everyone here and Happy Holidays !
Randy