Dose anyone have experience with bank owned properties? What are the pros and cons of purchasing bank owned properties? Any info or advice would be appreciated.
can’t say i’m “experienced”, but i am about to close on my first REO, and i can compare this experience vs. buying through agents traditionally vs. buying on your own from another private owner without agents.
the bank owned has been kind of a pain in the neck, but it is a great deal at the price i’m paying. the cons include - you generally will need to come up with more cash to close an REO- the other houses i picked up I got cash out at closing, no questions asked through other private owners. this REO i’m shelling out a 10% down payment plus closing costs. the cash flow and equity position will be much better, but i am paying for it.
the other thing is, it is difficult to negotiate with a bank on terms. they have their way of doing things, and unlike buying from a private owner, they aren’t really flexible (at least from my experience).
they demand quick action from you every step of the way, but don’t necessarily return the favor.
this is just my experience. let me know if i’m off base (you old guys who are truly experienced).
Old guys LOL I am 30!!
30 IS old! I should know, that’s my age too!
As I said in the other thread, by OLD i mean exceptionally gifted intellectually.