Is anyone having success bidding on bank owned properties? I’ve had a few offers on HUD and Fannie Mae backed property but they’re so anal on getting asking price. I do my numbers and it just doesn’t make sense to pay full price when there are so many options out there.
I’m just curious on others luck for this route. I’d like to pick up another rental and use the equity after rehab to buy another in 6 months.
i’ve found the Exact same thing…
which is why the HUD, fannie mae, etc…
lists are getting HUUUUUGE, record breaking numbers of homes just sitting there cuz they don’t want investors, they want owner occupants.
I don’t know what the deal is…but it seems like tax payer money is funding the homes sitting around on the HUD site :eek :eek2
There is one here iirc on Hud… has fire damage, upstairs gutted, foundation problems, needs rewiring, new plumbing, new All kinds of crap needed
and asking price is 150K.
the house is maybe worth 30K Maybe, in that condition around here.
Put a large deposit down, cash, not contingient on financing and a quick close and see how that helps. You, of course, need to know how to buy right. That kind of offer will at least get the banks attention and you’ll find if they are serious about selling.
I’ve bought a lot of REOs and have gotten some great deals. I agree with REIAuctions that putting down a big earnest money deposit and not putting in contingencies makes a big difference. In addition, I’ve found that patience is a virtue when dealing with banks. They don’t act like “normal” sellers. They totally ignore deadlines and will shop your offer to others. They are a pain in the butt to deal with. I have often made the same offer every couple of months until I get the deal. The banks will finally decide that they want to sell the property and when they do, they want to sell it NOW.
Total buggers to work with. I make all cash at closing offers, as is. Not that I have all cash, but financing is already secured. I don’t use “proceeds From a new loan” either in the offer just cash and yes I have had to go back and resubmitt the offers more than twice. Usually every two weeks. Also I put the earnest money due at closing because even banks can bung up a sale. If they can’t figure out how to sell a property for cash as, how are they ever going to be able to release my funds if they default ?
two slightly different things are being discussed here. For REOs, yes cash & quick close makes a difference. For HUD, in my experience, no it does not. Figuring out what HUD will and will not take requires for on those magic 8 balls with the viewport on the bottom that you shake up to tell the future.
Interesting. Maybe REOs and HUDs work differently in different areas. My last two deals have been one of each. First was an REO. Asking price $61,900, purchased for $45,000, 5 week rehab, accepted offer of $70,000 today, making around $12,000. Next was the HUD. Asking price of $63,900, purcharsed for $45,500, 2 week rehab, 2 weeks on market, accepted offer of $69,900, profit around $13,000-$15,000. Do HUDS and REOS work? For me I guess they do.
It really does depend on where you are located. In areas where investors (particularly newbies) are willing to pay way more than they should for a property, banks and HUD can wait longer, knowing they will get close to their asking price.
In other areas, they just want to get rid of the property - especially if there are a bunch on the books in that state/county.
Just keep trying. You never know when an offer will be accepted.