Real Estate Investing Forums

Real Estate Investing => Bird Dogs, Wholesaling => Topic started by: harball on September 11, 2006, 09:18:53 am

Title: Can you buy REO's at a discount?
Post by: harball on September 11, 2006, 09:18:53 am
I was wondering if anyone has had and luck buying REO's
at a discount of 30 to 40%?  

Any special method or advise you could give also would be
very helpful.

Thank You.
Title: I havent found a way
Post by: butlersw3 on September 11, 2006, 02:11:31 pm
I go and evaluate the deals myself and have made over 50 offers on REO properties in my local market without a single successful deal.  I even offer cash with quick closings but it doesnt make any difference.  I am in the North Atlanta suburbs and the listing agents for bank owned properties seem to always put them on the market at very close to ARV.  When I look at what the REOs are selling for, its like 95%+ of the List Price, so either we have lots of idiotic investors or lots of owner occupants.  I don't know of anyone getting good deals in my market on REOs.

I would sure love to know if anyone is getting deals out there....
Title: Re:Can you buy REO's at a discount?
Post by: NoMoneyDown on September 11, 2006, 03:16:49 pm
My experience with REO's in the past was about the same.  When a bank DID decide to counter my offer, it was some laughable number (like deducting $500 from their original price).
Title: Re:Can you buy REO's at a discount?
Post by: gordo2417 on September 11, 2006, 03:25:50 pm
He!! yes they will deal.  My first two rehabs were REO's off the MLS bought at nice discounts.  Not screaming deals but nice deals.  I sold one on a L/O and have one on the market right now.  You just have to wait some of them out or catch them at a really good time where they have to many on the books and they need to unload in a hurry.  My realtor will write ANY offer which helps me bigtime.  Like the saying goes........."The more mud you throw at the wall, the more mud will stick"  Isn't that how it goes  :)

Nate-WI
Title: Re:Can you buy REO's at a discount?
Post by: LBagent on September 11, 2006, 07:13:08 pm
When talking about actual REOs where the bank owns it and usually has a contracted real estate agent to sell it, you can sometimes get deals. Gordo put it well by saying "Not screaming deals but nice deals" though. When dealing with a bank-owned property, you are dealing with a seller without an emotional attachment. Sometimes this can be turned into your favor, particularly if something's been sitting. But don't expect it. The agent that constantly prices REOs low because they want a steady stream of commissions, will soon find his stream run dry.