Question in Topic.
I’m looking for a more effecient way to send offers to banks and still be taken seriously. Is my only effective option to use a buyers agent when it comes to REO’s and faxing the 10 page PA, sellers disclosures, etc, back and forth? How do you all do it?
thx
Darren
Good Morning Darren,
I have not used a buyers agent and at this point don’t see where I will need too. Just my two cents.
Go Get’em!
Ray
I don’t know if it’s your only effective option, but it is an effective option. My realtor solicits banks, and presents the offers to me. It’s good to find a realtor that specializes in foreclosures primarily.
My advice is to only use an experienced REO agent. Usually the listing agent is the best, but there are others I’m sure in your area. The truth is most agents don’t understand REO. They might think they do, or convince you they do, but selling a couple of foreclosures doesn’t count. I also suggest interviewing the agent. Ask them how much REO they have sold and their experience level. Find out what banks they have sold properties for. I could write a book on the screw ups I’ve seen. Easily more than half the contracts I receive are wrong! It is absolutely amazing.
If you area serious investor, why waste time with lack of knowledge. In the long run, an experienced REO agent will make you money. If your goal is to submit tons of low ball offers and simply play the numbers games, then find some rookie agent that doesn’t know any better. The larger, more established REO Brokers will not take you seriously if you want to submit a bunch of low offers.
One way to locate a qualiffied REO agent in your area, search on the National REO Brokers Association website(the NRBA). Only highly qualified agents are members. You can also try REO network, but be selective. Agents just have to sign up, no requirements like the NRBA.
Good Afternoon Darren,
WOW! You received some pretty pointed advice. Everyone has their comfort zones and in some cases, their own agenda. I can only tell you, I have NEVER used an REO agent. I have found, the REAL DEALS, with the most profit have the fewest people between you and the bank.
If you want, let me know where you want to invest and what type of property and I will suggest a few of the lenders I know of that will be happy to work with you directly.
Go Get’em!
Ray Rochefort, mgr. mem.
Purpose Investments LLC
Rayr,
You are saying you have never used an agent period to buy a bank property. That’s great, you have learned angles to work directly with some of the banks out there. But there are so many banks that investors cannot work directly with also. Most investors especially new ones just starting out don’t have this luxury. A majority of the larger servicers use asset management companies. There is no way to really bypass the system. I agree with you, that is an excellent angle if you have it. I think it is also going to depend on what part of the country you live in.
My point is, if you are trying to buy a normal listed REO property use an experienced REO agent. REO transactions are so different from normal real estate. Inexperienced agents just can’t give their clients the proper representation and knowledge they deserve. I see this everday. Agents screw up their clients offers by submitting incorrect paperwork. Buyers call me direct often to ask questions about the addendums and procedures, when I tell them they need to ask their agent, they say,“we have, but he/she doesn’t know the answer, they have never sold one of these type properties before”. I hear this all the time.
So if you can go directly to the seller, I say go for it. But if you have to buy through the normal route, use an experienced agent. Trust me, it will save you money in the long run.
REO - thanks for the tip about National REO Brokers Association website(the NRBA).
you are welcome!
darren*
do you use the REO agent for buying from bank and selling too ? or probably just buying right ? How do you know what the listing the REO pulls out belongs to bank or not ?
my agent has me on an automated list with my criteria. Rarely do the listings specify REO. I have to look threw them. Usually they say something like corporate or bank owned owned. selling as-is, seller will make no repairs, pre-approval letter, EMD, etc.
Then i can check the online county tax records to confirm its a lender. You can also use the lenders websites. I have found different prices on the lenders sights versus the MLS before.
I got this site from someone on here http://www.thedirectoriescompany.com/REOs.htm
Also, I have not purchased an REO yet. Only ghetto kitchen table deals for me 
I’m trying to move up the food chain, but what i’m doing now takes too much time and i’m busy with college. I have some more than fine tuning to do. Get to know a REO broker or two.
“If your goal is to submit tons of low ball offers and simply play the numbers games, then find some rookie agent that doesn’t know any better. The larger, more established REO Brokers will not take you seriously if you want to submit a bunch of low offers.”
Very, very, very good point.
I use to appraise HUD & VA REO’s. However, I don’t sell them often & I certainly wouldn’t want to list them (too much work for too little pay in my opinion). We’ve an Agent in the office that specializes in REO’s…he’s starting to sweat bullets…he hasn’t had a sell or listing in over 8 months (can anybody guess why?).
-Infowell