I have a buyer, a friend/ex co-worker that wants to buy a house, but will not attempt to do so on her own. She has excellent credit and savings in the bank. She can afford a monthly mortgage payment of around $800.00. She has very little criteria; Prefers Garland, TX… has to be 3 bedroom… has a nice back yard.
Being entrusted with this sure deal I know I could make it happen if I were a little more knowledgable.
Finding the house.
Are banks/lending institutions willing to sell a foreclosed-on house to someone like me who will be reselling immediately… or do they generally go to auction?
Is there a certain way, etiquette in approaching them?
Do I need a real estate agent/broker to even attempt this?
I have a lot more questions but I think I’ll let those wait until someone can steer me in the right direction.
Thanks for any help… you guys/girls are really great!
Most REO’s are listed with local agents excet HUD and VA foreclosures. These you can bid on thru local agents too. The new listings are only available to owner occupants.
Most other bank owner properties are not auctioned. Also you may be required to show proof of funds or a preapproval letter from another lender before they will approve the sale.
You do not need an agent to buy a house. They do tend to sell about 90 % of the property and almost all the REO deals so you may be forced to use one . In a lot of markets the houses are priced at retail value unless they need extensive rehab. There may not be much profit available.
Your friend maybe should go ahead too and get preapproved for a mortgage to make it easier to close the deal when you find one.
If 90% of REO’s end up going through agents/brokers it sounds like very little profit indeed. If that’s the case I’m a little more confused about all the books and infomercials out there extrapolating on how much money there is to be made in this area.
Okay here’s another idea. My father is retired, but not being the lazy type he got a real estate license several years ago and sold houses on the side. He recently got his broker’s license. Thing is he lives in Hawaii (I’m in Texas). I emailed him last night with a lot of questions but he hasn’t responded yet. Would he be of benefit over the distance?
Sorry that for every answer I have 5 more questions… I’m kind of that way. I do appreciate yours and the others here being so helpful, this is a good learning tool.
There are still deals being made thru listed property. We are closing tomorrow on our Dripping Springs purchase that we got from MLS. Some Realtors specialize in REO listings and they are good to get to know. You may be able to get in ahead of the general public and make quick offers.
Having a license in Hawaii is no help in Texas. He may be able to help you with strategy and where to get started etc. and maybe teach you some other stuff and answer questions.