Making the Offer

In making an offer for a bank reo, should I include all of the problems with the units (frozen pipes, broken furnace, etc.)?

Also, what verbage should I use inorder to get $10,000 back at closing to help with repairs. I want to finance my repairs?

Lastly, what are some contingencies I can use to back out of the deal if the property looks like a bad investment? I want to get it under contract quickly, because it’s a new listing.

Thanks for your help!

Banks normally don’t care about the problems. They’ve already gotten a BPO.

Unless you’ve found a small local bank that will loan based on appraised value, then you will have a very difficult time getting cash back.

You should decide ahead of time whether it is a good investment or not. Banks are difficult to work with and usually will not allow many (or any) contingencies.


You won’t find much flexibility at all with the property you are dealing with. Banks are not creative and will not understand your creative investing. They aren’t in the real estate business either so they just want it sold.

REO’s often take a little more experience to deal with. But they can be profitable. Is this your first deal or is this your first REO?

I’ve done several REO deals. Usually I can flip the properties, but never tried to get creative with the financing. I’m thinking this bank is ready to move though. It’s been vacant for 1 1/2 years and their original asking prices was $195k and now its 75.5K.

Do banks usually allow contingent upon the sale of another home?