Is it a waste of time to contact local banks etc for bank owned
property.
After talking to a few and getting some lists, most are listed with
realtors and are asking retail prices>>>>
Do some deal or are they looking for “FMV”
Bought some property years ago fom The Associates and also
Fleet Finance…both would make some pretty good deals
for investors.
Thoughts??
Sorry, I am a newbie too so don’t have an answer but was wondering if you could tell me. Did the local banks give you the list and they have agents or you just ended up being referred to the agents themselves?
working with an agent and also calling lenders on
my own…good luck!
It’s been my experience that most REO properties are listed with agents and trying to deal directly with the lender is a waste of time. You might have some luck with small, local lenders, but not with the major lenders. The kind of deal you can get is going to depend on the market you are in. Do the REOs in your area move fairly quickly and for retail prices?
Right now do to time constraints, I’m looking at FNMA/FMAC, VA, HUD and REO’s.
Once some of the HUD stuff moves thru the owner
ocupant period seems like most are going for 5K
under asking price…some good deals.
The rest are listed a little below FMV, I’m looking
for 15% to 20% equity.
Guess i just need to be persistent, patient and lucky!
Examples of small local lenders???
Would something like American General and Citifinancial
be ones…
Thanks
By small, local lenders, I mean a bank that is truly local-has a couple of branches in your town and that’s all. Not easy to find and if you do find one they may not handle their own REOs. It’s very possible that they use an asset management company.
Are you looking at properties that need a lot of work or are you trying to get 15-20% equity from a place that needs some carpet and paint?
Bidding on a HUD house today that needs carpet and paint.
Listed at 119K. Spruced up should sell for 130K.
My realtor seems to think that we might be able to steal it
for 105K. Put 5K into it and either sell it or rent it.
We’ll see…
Not looking to get into major rehab projects right now. Unless
the deal was to good to pass up.
Shelton after realtor and lender cost what will you make on the back end? I ask because I have found about the same deal in my area.
Better yet~ catch the property before it gets to the agents, at the court house. The lender buys back the property at the foreclosure sale at the court house. their bid is based on the amount that is owed to them plus legal fees etc. just bid little higher or if it is too much, call them after the sale to offer what you think it is worth. They are looking for quick and clean sales with little expense on their part.
Happy Trails! 8)