bank owned properties

I have a property that I want to purchase. its a bank owned property and the bank wants 166k for it. I just had it looked at by an appraiser and did a comp search of properties that have been sold in the area and with the repairs, the arv came up to 300k. I talked to the Realtor and told him i wanted to submit an offer with exit contingencies just in case I didn’t find an end buyer for the property, so that I will be able to get out of the deal without being held liable for anything. My Realtor told me that banks that own/sell properties don’t usually accept offers with contingencies.

This is my first property that I would be wholesaling and I wasnt yet quite comfortable with the whole process of rehabbing, only because i haven’t done a rehab before, although that may be something that i should take into consideration for this particular property.

My question how true is that statement that my realtor told me about banks not accepting deals with contingencies?

2nd question is what would my options be for this particular deal. arv=300k, list price 166 about 10 to max 15 in repairs. ideas anyone

What type of continguency? and what do you have to put on the line if you use no continguency?

I work in an REO dept. and buyers get their offers accepted all the time and then they decide not to buy for many reasons. Last week we had a guy say the reason he isn’t following through with the prurchase is because he found out the home was built a few years earlier than was stated MLS. Buyers are free to do this in San Diego…they are not forced to make the purchase if their offer is accepted, the broker you are working with will just ask for a reason so they can let the asset managerof the particular asset know and it will go through the whole process again and again. Don’t let his words scare you. Go for it and let us know how it went.

I have bought at least 20 bank owned properties and most allow for an inspection contingencie in the contract of around 7 days.

Keep in mind you don’t need to tell anyone why you want a contingency, that is why I like the inspection contingency so much. It can easily be explained why you don’t want the property, because you can always find something wrong if you want to back out. Where as if you say I may not have a buyer so I need a way to weasel out, just comes off bad to anyone.

If deals like that are available from realtors in your area, and you have time to post about it, more than likely many more deals like it will come along. I would work on buidling your buyers list before running out and making offers.