REO,share your cucces buying bank own house.

Hi everybody!!!

Can anyone share your succes story about REO property he/she bought.Iam little frustrated.I was making lot of offer on REO with no luck.I offer 70% ARV minus repair and never get accepted.Bank counter offer but they lower the price just little,not enough to make any proffit for example:3B/2Bath split level bank offer $196.000,repairs needed $30-40k ARV $220-230k.I offer$149,000 in my opinion too much and bank anyway did not accept.I have had this scenario on every house I made an offer.There is many REO properties where I live but banks do not want to lower the price.They want to sell the house which needs lot of repairs for almost the same price like house ready to move in.

Your problem is common.

My theory is there are alot of people out there who just got done watching “Flip This House” and have decided they want to be a REI. So, the first thing they do is look at the REO listings and pay way too much for the properties, thinking because they’re “Bank Owned” they’re priced low. They quickly find out what happens when they pay too much for a property. I’ve seen this happen with my own eyes (right down the street from one of our rehabs).

Luckily, this pool of people seems to be thinning. In the meantime, banks will still try to get full market value for their REO’s. Sooner or later, they will have to start accepting lower offers.

Not to say there are no deals with REOs. I’ve bought a couple of REO properties over the last couple of years, one was a peice of garbage that needed extensive rehab that no one else wanted, the other was a house worth 75k listed for 55k and I purchased for 50k.

Don’t get too frustrated, stick with the numbers that make the deal work. Numbers don’t lie. You may want to figure out the who the big listing agents for REOs are in your area and get to know them. They won’t admit it, but they have “pocket listings”, and you want to be on that list! It’s not easy, so plan on phone calls not being returned, etc. Be persistant, but don’t be a pain in the a**.

Good Luck!