We have lots and lots of REO questions. Also, does anyone know of a good REO course/teleseminar?
–In trying to delve into the REO maze, what’s the first step?
–Whom do I contact (which department?)
–Do banks like to speak to individual investors (rather than realtors), or are they bothered by that?
–What type of documentation should we present?
–What impact/selling points does a REO that has been on the market longer have on the chances of us getting it at a good price?
–What other factors might be in our favor?
–If a house is an REO, it is going to be vacant, correct?
–Is there some evidence we can present to show them that their investment is losing value, especially if it is vacant?
–What could be a good wake-up call for the REO departments?
–Which banks are more open to dealing with investors?
–Would this sound like a far-fetched scenario: we contact the bank, contract with them to repair and sell the property, and earn a percentage of the profits?
Thanks a million!
sixdirections
Glad there is someone else out there trying to work their way into the REO departments. Myself and my partnere have been working forelclosures for the last year and have had success. However, the auctions have been filled with newcomers getting a BS seminar down the street and are bidding up over market value here in
Charleston SC.
I have been looking towards banks and REO departments for two different sources. First as a source to purchase loans that are going into forclosure and foreclose ourselves. This angle we would like to work in the sense that some of the smaller banks would be happy to free up capital and take say $.80 on the dollar to free up some capital.
The second reason for making these contacts and establishing working relationships with REO departments would to work as a listing agent for them in the area. I have a real estate liscence and hang a liscence with an out of office company where i can negotiate my commissions to wherever i’m comfortable.
I too am looking for resources to make these connections and find out how to make the system work for both the banks and my small company. If you’d like perhaps we can pool our resources that have already been found.
Also, does anyone know of a good REO course/teleseminar?
–In trying to delve into the REO maze, what’s the first step?
–Whom do I contact (which department?)
–Do banks like to speak to individual investors (rather than realtors), or are they bothered by that?
–What type of documentation should we present?
–What impact/selling points does a REO that has been on the market longer have on the chances of us getting it at a good price?
–What other factors might be in our favor?
–If a house is an REO, it is going to be vacant, correct?
–Is there some evidence we can present to show them that their investment is losing value, especially if it is vacant?
–What could be a good wake-up call for the REO departments?
–Which banks are more open to dealing with investors?
–Would this sound like a far-fetched scenario: we contact the bank, contract with them to repair and sell the property, and earn a percentage of the profits?
Thanks a million!
sixdirections
Here’s one problem I am having with REO’s in my area (Northern Colorado): several clearing houses buy up the REO’s from the bigger banks like Countrywide and Wells Fargo @ 50-70 cents on the dollar, so they’ve already made the money. They then clean up the properties a little and resell and are typically unwilling to accept 70-80% below market.
The strategy of working with the smaller, local banks and establishing a relationship seems to be the key to getting deals.