I have bid on 3 properties this week. I found 4 apts repo’d. They are asking 169,000. I offered the bank 50%. They countered with 149,000. I don’t know how high I will go but probably not more than 90,000 because no one is in them but they are very nice ,just dirty. 4897 sf total. Total rent s when rented is 1800.00
Other property is Hud fc and appraised at 89,000. 1100 sf 1996 model brick I offered 45,000 to bank.The re agent said I’ll put it in but they are not going to take 1/2 off. I said put it in anyway.
I am still bidding with bank on 40,000 arv of 70 old home that i have bid 7,000 on and thats my final bid. The bank has came down 3 times but I don’t want to go up anymore.
My question is do you guys ever see banks taking 50% off of what their asking? Can it happen?
it can happen ,but rarely goes that low without a really good reason.
like a major rehab etc. or it’s near the end of the month & they want it off the books(yesterday if not sooner) & they want to close in 5days!!
it may happen if they are doing a “package” of houses. then sometimes there is no rhyme or reason for anything they do. just do
your best & if the numbers work -great!! if not ,then, next !! there are too many deals out there to cry over spilled milk.i’m told that to do SS with success , you need to have 5 to 10 in your pipeline at all times-
that’s a lot of juggling, & required due to the fact that they take so long to do.
harriet(fl)
Yes, you can get REOs at less that 50% of market value. I’ve bought many. However, they don’t come along every day and PATIENCE is the key. If they don’t accept your offer today. Resubmit it in a couple of months. It has taken me over a year to have some bids accepted. Being in the rental business is like a marathon, not a sprint.
Good Luck,
Mike
Thanks Guys
The key word here is market value. I have bought several properties from banks for 50% of the MARKET VALUE. But I have never bought properties from banks for 50% of the asking price. If the property is way over priced like in your examples, then there isn’t much to work with. Focus on properties that are reseasonably close to cash flowing, and then bid lower. But 50% off the asking price is not very realistic.
There is a big difference between what I do when I low ball a bunch of properties and what you just attempted. Let me know if you don’t understand what I’m saying.
Example:
Property worth $50,000 asking $100,000.
A bid of $50,000 will probably not work.
Property worth $50,000 asking $69,900
A bid of $50,000 will eventually work.