I wanted to know information on how to buy properties from banks. Does anybody any info. on how to get them at a good price or work out a great deal ???
Once the bank owns it, the property will likely be listed with a Realtor.
In my experience, it’s hard to find good deals here because I am wholly convinced that the Realtors are issuing way-too-high BPOs (broker price opinions) to the bank to get the listing.
I have yet to see an REO listed at a price that would even begin to make sense for an investor.
So, I think the only thing you can do is make a lot of offers and be persistent in letting the Realtor know that you’re a serious investor with the cash/credit to close a deal when they get realistic about what a house is worth. It may take months and months for them to get there, but you still want to be top of mind when the moment comes.
Having said all of that, I have yet to have an offer accepted on an REO property, but I’ve been at this for only a year and I don’t focus on that segment.
I have purchased alot of realtor listed bank foreclosures and have spoken with many of the realtors about the BPO’s. It is not necessarily the realtors that give the high BPO’s, typically the banks use the bpo as part of the grander scheme of pricing homes. Usually at least in my market banks are listing the homes for way above the price that the realtor actually suggests.
You can get phenomenal deals from realtors but as Paul Broni says you need to be the go to guy when they get good deals, and to get to be the go to guy you need to be able to close deals fast and with very little effort on the realtors part