OfflineI'm just getting started. I've started the process of looking for deals. The more I look the more opportunities I see. I'm frustrated and scared to start.
For instance:
Located an REO...a little over priced (needs work)and would like to make an offer.
It's listed through a realtor.
Problem:
I have bad credit.
Have no financing.
Am I out of luck?
Questions:
How can I lock up the property without a funds letter?
Do I need to find someone/partner that can offer theirs, and where would I find them?
When they do offer their assistance/fund letters etc.,is there a contract for that...between me and the person offering there financial assistance?
Other deal:
Also looking at making offer on a SFH.
I would like to lock it up at a lower price and reassign it.
Questions:
What if my offer is accepted and I have no buyers?
Is there a good offer letter to use?
(the house needs work) landscaping, painting etc. that would justify my lower asking price.
If I cant find an investor, should I find a hard money lender and try to flip it?
Is there a typical easy out in an offer letter if nothing pans out?
I would like to get my feet wet.
Any help would greatky appriciated.
The bank has listed through a realtor.
Should I bypass the realtor and contact the banks asset manager directly?
Typically the bank who owns the property will not talk to you. This is why they assign a real estate agent to list and sell the property. In the sale of REO's, please keep in mind that the bank has already informed the real estate agent what they need from the sale of the property. Most individuals who are investing in real estate assume that because it is a bank-owned property, the bank wants to get rid of it as fast as possible. This is not the case at all.
As an example, if a property is listed for $150,000 the bank may take less but only a few thousand dollars less, or $147,000. It really depends on the bank and I have found that in most cases the bank would rather hold on to the property as long as possible to get as much liquidity out of the property as possible. Remember that the bank has in most cases, already suffered a substantial loss on this particular property. Make a fair offer on the property and when all else fails, ASK, what they would take. The answer might surprise you.!!
Establishing a good working relationship with a bank should always be a priority.
Good Luck