When making offers on listed properties to wholesale, what are you guys having better luck with as far as getting your offers accepted, REO’s or short sales?
Bank owned REO properties are significantly easier to acquire, a short sale involves submitting a package, calling daily to speak to 5 or 10 different people and waiting days, weeks or months for the lender to finally give an answer.
On the other hand REO’s can be had by attending auctions, buying listed properties, networking with people buying bank portfolios (groups) or by buying through the bank prior to listing or marketing the property and can be closed on in as little as a week or so.
On great advantage of short sales over REO’s is that you have much much more time to get line up your buyer to close on a Short Sale. You have more then enough time to market the property and show it.
I can see how that woud work if it is not listed, but how can you market and show the property if you don’t have it locked down and it is listed? When you show it to your buyer they could make their own offer (which is higher than yours) and cut you out of the deal then you lose house and buyer. Right?
Any property can be bought if you don't have a firm contract!
Even though it’s listed, once you firmly tie it up you can remarket it to an end buyer! How long you may have to market and close is up to how you set up your contract!
I will give you a little advice Braden, I buy properties for my buyers, I do not buy properties to find a buyer!
As you build a buyers list buy properties to meet the needs of your buyers, make it a good deal for you and a great deal for your buyer!!!
Make a reasonable profit without becoming greedy, this is the key to successfully moving real estate!!!
GoldRiver, thanks for the great info. But can you explain what you mean by “Firmly Tie It Up”? To me having the property firmly tied up would mean having my offer accepted. Otherwise, the situation could be what I stated earlier where your buyer could cut you out by making the higher offer through the listing agent or bank. Unless you pull out the for sale sign when you show it. Am I missing somthing? I am trying to understand how you can remarket without knowing its your deal. Could you guys please help me understand how this works.
Yes you must have a firm signed contract to re-market a property to a end buyer! GR
Diversify. Don’t just focus on REO’s or short sales. Get your own marketing out there. You don’t have to spend much. Then you have them calling you. You then can make offers on people that find you. Much easier this way.