An Example of Not Being Prepared

Hi Y’all,

I just wanted to share a missed opportunity I encountered last weekend. I was trolling through and saw a house in a nice old Fort Worth neighborhood that was listed for $120k. I did some research and found out it was a REO. This property was almost pristine on the outside, with new siding, landscaping, and a neat yard. Whoever lost this home to foreclosure was an idiot. Other homes in this neighborhood with the same sq footage, same amenities, same age, same lot sizes were selling (and had sold) for around $270k!!!

This REO was in the second round of bidding, where the lender accepts all bids, even from investors. I found out about this house on Sunday evening - the bids were due on midnight that night. I met with the realtor anyway at the house, just to see if this house was as good on the inside as it was on the outside. Well, it was in great shape, except for one thing - the foundation. It was pier and beam, and the floors were bumpy and leaning this way and that. But even if it cost $20k-$30k to fix, there was still a boatload of equity in this property!!

As with any Texas HUD REO, you must have a money order or cashier’s check for $1000 if the listing is over $50k to submit with your bid. Well, I didn’t have that kind of money lying around, and I don’t have my “wealth team” built up to the level where I can make a phone call or two and get it done.

Even though I knew I was missing out on an opportunity, I asked the realtor to let me know how much the property sold for the next day. She called me and said, “that house sold for only $140k - I thought it would have gone for much higher.” Whomever this new homeowner is, they have a great opportunity to make an easy $100k or more on this.

Oh well, live and learn. I’m keeping an eye on this one and I’ll reply back to this thread when I see it go on the market so you all can wallow in my misery with me. :cry:

This is just an example of how NOT to be prepared to work a deal - they can happen at any time. Even on a quiet Sunday evening…


Look at the bright side. If you just happened to come across this deal, there’s bound to be more like this out there. :slight_smile: Eventually you will have your “wealth team” built up to a level where all you have to do is make a few phone calls and the money is there for you!

I know where you’re coming from though. I have come across some REO deals, but have been unable to do anything because of needing a “pre-approval” letter in order to submit an offer, which I don’t have yet. So, I just concentrate my efforts on the deals I am able to put together at this time.

Keep up the good work! It sounds like you have a good eye for potential deals.

Enjoy the rest of your weekend!


Hey Bob,

It’s me again. We seem to be running into each other on this board, eh?

That’s a bummer. I agree that you learn and live. But man, that’s was a big fish that got away because you didn’t even have your hook in the water! :o

Do you have a network of people you can call on who do have $1000 or more sitting around, just looking for a good deal? Next time, give me a ring if you find one like this!

If we can all learn from your experience, I hope the lesson is that you’ve got to prepare for the next great deal. They’re coming every day. Those who are ready to snatch them up will profit nicely.

I’ve been working diligently to build up my cash and lines of credit to be ready to pounce on the best deals that are coming our way in this softening home market. Forclosures are on the rise, and seller are having to get more creative with financing and terms than they did just a couple months ago. We should all do this as much as our credit and finances will allow. Then we’ll catch that $100K fish with our $1K hook!