OfflineA few posts ago, I was singing the praises of my Realtor. I couldn't believe what fortune I had finding an REO listing agent that "bought in" to my business model. But if my instinct is right (and most of the time, it is!) I believe that he is "holding" my offers and has not been putting "and/or assignments" on my offers. While I do not want to accuse the man, something is suspicious here.
I learned from someone else that the local REO's are moving at 85% of listing price...being accepted. There are a couple that I really want to get because I know that they are GREAT properties and great opportunities. I have received NO offer rejection letters from the bank on over 6 offers. My Realtor also said yesterday that he thinks that NO bank will accept my "and/or assigns" line on my offers. He said "it just won't get them accepted". I have already talked to another guy who seems very "investor friendly" and I also have someone else who has said "no problem" and both will actually write up the offers for me (this other guy wouldn't).
I am curious if anyone else has run into the question of banks / REO's not taking "and/or assigns" or if the Realtor is just stating an opinion. I get the feeling that my "sure fire" Realtor is more interested in maximizing his commissions on one deal than the potential volume I could bring as I grow. Oh, well...we learn as we go, don't we?
Jon
Jon A. Lubin
Investment Properties Group L.L.C.
Birmingham, Al.
www.connectedinvestors.com/investmentpropertiesgroup
"You Miss 100% of the Shots You Don't Take" Wayne Gretsky
Yes I have heard of banks selling REO's not accepting "and/or assigns" . But I have heard otherwise as well. So I think it depends on the bank and the person handling that case for the bank.
I have also been told by a few lawyers that it tough to almost impossible to assign an reo to a buyer unless the he/she is an all cash buyer.
Don't Wish the Past, Create the Future! - DH
That is the neat thing about my buyer. He is a gentleman who "cashed in" his stock portfolio and has 2 million to buy with!! He wants to rehab and hold. Honestly, I just need to get my 2nd deal on paper and we are as good as done.
Thanks for the help!
Jon A. Lubin
Investment Properties Group L.L.C.
Birmingham, Al.
www.connectedinvestors.com/investmentpropertiesgroup
"You Miss 100% of the Shots You Don't Take" Wayne Gretsky
We have submitted offers to just about every bank heard of & then some... not only will they not entertain offers with and/or assigns, but you also must submit proof of funds. Even with all this we have had counters of only 1 or 2 thousand dollars off the listed price. I believe this is because of the BPO; appraised price; & the bank's judgment amount.
Hi Jon, how is it going down there? I lived in Montgomery myself many years ago, Mom was born in Selma, Grandmother in Birmingham.
Anyway, with REOs I never put and/or assigns on my contracts, your agent is telling you the truth about the offers not being accepted. There is always a rare exception, like a small bank or credit union but 99% of the time it is a no go.
One other note, legally a contract is either assignable or it is not. If it is an assignable contract there is no need for "and/or assigns" anyway!! Old school guru talk in my opinion.
Just change your strategy! Here are some options.
1. If you trust your buyer, just put him directly on the contract and collect your fee from him.
2. Use transactional funds and double close.
3. Use your buyers funds and double close
4. Buy the property in an LLC and sell the LLC to your buyer.
Also, once you make a straight offer and you think they are not being submitted, ask for the written rejection statement from the lender. By law the realtor must submit a written offer to the lender and you have the right to see the rejection.
Once you know and trust your realtor if he tells you your offer is not going to work because there are higher offers already in than there is no need to offer. Just keep track of the property and make sure it goes under contract, if it falls out, jump on it with your original offer!
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
Anyway, with REOs I never put and/or assigns on my contracts, your agent is telling you the truth about the offers not being accepted. There is always a rare exception, like a small bank or credit union but 99% of the time it is a no go.
One other note, legally a contract is either assignable or it is not. If it is an assignable contract there is no need for "and/or assigns" anyway!! Old school guru talk in my opinion.
Just change your strategy! Here are some options.
1. If you trust your buyer, just put him directly on the contract and collect your fee from him.
2. Use transactional funds and double close.
3. Use your buyers funds and double close
4. Buy the property in an LLC and sell the LLC to your buyer.
Also, once you make a straight offer and you think they are not being submitted, ask for the written rejection statement from the lender. By law the realtor must submit a written offer to the lender and you have the right to see the rejection.
Once you know and trust your realtor if he tells you your offer is not going to work because there are higher offers already in than there is no need to offer. Just keep track of the property and make sure it goes under contract, if it falls out, jump on it with your original offer!
Michael Mangham
MD Home Acquisitions LLC
Great Points Michael that are so often overlooked or not learned or used.
Being the problem solver is like the early bird.
As usual Good post
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
I knew that you had to have some Alabama in you somewhere, Mike!
I talked to my buyer and because I "gave" him one for his Sister-In-Law...he is going to work with me on just doing a direct fee. I was a little disturbed about not getting rejection letters...but I have since talked to me Realtor and it has the appearances that he is on my side. He said that "the Banks come back at accepted offers with so much paperwork and an automatic 7-day inspection out built in" that I was better-served "making a no-contingency, offer with proof of funds" he felt like I would be in the ball park on 3 of my already evaluated REO's.
I have a feeling that if I can make this work with this Realtor and this particular Lender / Attorney team, that the sky is really the limit. If I show them I am a "player"...I will have some great shots at REO's (and they said that they have a back-log of "hundreds" of them and the Dam is about to break!!
You guys let me know when we all meet for the Millionaire's club!!!
Thanks All!!!
Jon
Jon A. Lubin
Investment Properties Group L.L.C.
Birmingham, Al.
www.connectedinvestors.com/investmentpropertiesgroup
"You Miss 100% of the Shots You Don't Take" Wayne Gretsky
Put right in the offer that you want written proof that the offer was presented within 24 hours; and a response to the offer within 72 hours (or other time as you require). Out here in CA, getting offers shown to the bank is near impossible because agents just don't show them, even though they have a fiduciary responsibility to.