What about finding motivated Sellers? REOS or Not?

Bird Dogs, Wholesaling
1

I want to do reos , but you need to make strong cash offers,with no contigengies, but i am newbie and banks saw POF is not cash, so now i will tryi to the FSBO to call me, Bandits signs and probate, but i here bandits are illegal…frustrating and out of time…::((

2

You don’t have to be making cash offers with no contingencies to get an REO deal.

My first deals all had an inspection contingency of 7 days, and I was using a letter from an HML similar to Coastal Funding.

Many of the wholesalers I know who get REO deals on a regular basis use inspection contingencies in their offers.

It always helps to make clean, cash offers, but it doesn’t mean that is the only way.

Steph

3

Thanks Steph!

4

Are trying to wholesale them? Here in my area you need to submit a pre-quail letter or POF with your offer. Some banks have rejected the Costal Funding letter stating that its not cash but flash funding.

5

Regarding the bandit signs being illegal…I have heard two great ideas.

  1. (Credit to Tim Mai) Place, or have your bird dogs place bandit signs that say “We Buy Ugly Homes” in front of abandoned homes. First, the home is private property, and if it is abandoned no one will say anything, they will think you are trying to sell the home. This will result in TONS of leads from others calling to sell you their ugly home. -OR- the homeowner may call you and you can say something like, “I’m so glad you called, I’ve been trying to reach you to no avail because I am very interested in buying your house”

  2. (Credit to Jim Fleck) Go to neighbors homes in “abandoned homes” neighborhoods and offer them $5 gift cards to place your sign on their private property (this works for directionaly signs for round robin auctions as well).

6

EVery person I have heard talk about bandit signs says that they dont work all that well to find sellers, but are great in finding buyers

7

Hi tampasteph,

Does the inspection period start after the contract is signed and ratified?

An REO listing agent told me the bank wanted me to do the inspection period BEFORE the contract was signed and raified by both parties.

So since I didn’t have the property under contract, if my end-buyer went to look at the property then he could go around my back and make an offer to the bank since the bank was still accepting offers, right? Thanks

8

It depends on what the contract says. Sounds to me like the bank doesn’t want to give you an inspection period at all, and just wants you to do your inspections before you write up the offer, then make the offer with no inspection period.

Yes, the bank can still take and accept offers if you don’t have it under contract yet, so you run the risk of a buyer going around you if you send them out before the deal is officially yours.

Steph :cool

9

I agree with Steph, the cleaner the offer the better to stay competitive, but there are no requirements.

Most banks require me to sign an addendum allowing them to sell the property to someone else after we are in contract, plus other egregious terms. It’s never happened to me, but they demand that right. When it’s their property you have to play their game.

Propace102,
I see you are in San Bernardino/Riverside. Bruce Norris runs an REO machine in your area and is the only guru I respect, along with anyone else knows him. He’s quite well known. You might look him up for advice and perhaps take one of his classes. He’s also an HML.