I am in Ca. and have presented 50 offers within the past 2 months they are all 25-30% below asking and asking is market value. None got accepted. It is my opinion the REO investment opportunity is nonexistent -It’s full of hype. Think about it. 99% of all REO’s are Listed by agents and the ones that do not sell and stay in the market for months are not properties worth investing in anyway, since the good ones once purchased by owner occupants.
You’re poll answers dont make sense…
I have no idea why none of your ‘50’ offers where accepted. BUT, I do have a way for you to get some feed back directly from an asset manager. I posted a list of CA REO’s I procured directly from the asset managers in another thread. IF you make an offer on one of those properties and that offer is not accepted, I will personally ask the asset manager, on your behalf, the details surrounding that deal and WHY your offer was not accepted.
This way you can find out if there is something you are doing wrong on your end or if you are simply being out bid by others. Keep in mind there is no magic percentage that asset managers go by. I saw a property the other day listed at $299,900 but the three highest offers on it were above $320,000. There were 11 offers total.
GooD LucK! :beer
I know CA is a little askew. In PA an REO listed for 289K on market for 6 mos. Nice house-4br, newly renovated in great area, great school district, 2 acres. Agent was hardballing with each call but softened when time marched on. Finally accepted 169K when market going south.Time and timing are everything.
Rick,
You can make good money on REO’s. Timing, how you write your offers, and most importantly…your ability to close will get you these deals. Nothing non existent nor all hype about them. All I do is buy REO’s to wholesale or flip so I know for a fact it can be done. Stick with it,
Nate-WI
Guys, my offers are all cash and 15 day escrow. we offer 25-30% of as is market value. Being a broker and appraiser I usually write 1-3 offers per day with no results. All the best deals usually usually have multiple offers by owner occupied people once the lender drops the price 5-10% below market.