Alright I made my first offer on a house a few days ago. It was for an REO property that has been vacant for about a year. All previous offers had been flat rejected by the bank for being too low. I was told by the listing agent (LA) that my offer of $50,100 was a ‘little’ bit higher than theirs.
Now that I am in wait mode what can I do? The last few days have had me find about 6 more properties that I would like to make offers on. These are all REO properties so it is a matter of catching the bank at the right time that they decide, “Ok we better take this offer or keep holding it another 2 years”.
Other than being able to afford to close on every offer made is there anything else I can do while I wait for this first offer to come back approved, countered or rejected? Or do I wait for that then go on to making the next offer?
Make mucho offers and make them subject to partners approval and inspections and loan approvals etc. Get several offers approved and then pick the best deal for you. After inspections you can find some items to help get the price lowered. Be aggressive instead of passive. I have made offers and have yet to hear back. The one who cares less usually wins and just when you think you can not get a deal three will be there in your lap. I need a clone or two right now to keep up with all the deals I want to see happen. I have 3 rehabs going on at once, $55,000, $80,000 and a small $20,000 job and the bigger one is and hour and a half drive that I made back and forth every day. I used to lay around on the couch and complain of how tired I was. Now I have boundless energy and need to get some sleep now so good night
Thanks for the advice tedjr! The offer was rejected with no counter from the bank. The said nope try again. The discount on the property from ARV is exactly what it would cost to make it worth ARV so no home buyer is going to do that. Infact the property ‘looks’ so bad it would prolly scare most home buyers. BUT the price is too high for an investor to take it and repair it and still have any kind of discount worthy of keeping it.
How do offers with the subject to partner’s approval work for when submitting to banks on REO properties tho? Do they frown on stuff like that just as they do for assigns?
I do not know. I read that you should do stuff like that. The worst that could happen if you just strike it out and make the offer anyway. The only thing I use is inspection and financing. I try to make my offers as clean as possible so the bank will know that I am real. They have all been with mortgage approval letters as well. Like you, I had one just totally rejected. The same as yours too not enough meat on the bone. It would be OK if looking to keep and lease out but there are plenty of those available that are already leased and in good shape. Keep on trucking and you will get one done
I have made my offers subject to lender’s approval of appraisal. Banks understand an appraisal contingency.
If I were the loss mitigation officer for the bank, when your offer is contingent upon a partner’s approval, I would just tell you to have your partner submit the offer.
Making offers to buy houses is a lot like getting girls to go on a date, you just have to be persistent. The more you ask, the more likely you are to experience favorable outcomes. I’ve had plenty of offers turned down by sellers and I’ve also lost out when a bidding war ensues. But, there’s a ton of houses out there. Just continue doing what you’re doing and it will work out. But I know what you mean by it seeming like a waste of time. I hate waiting to hear back from banks as to whether or not they accept an offer. Waiting sucks!!