Sunday, October 12, 2014

REO experience

from my past experience on REO 2008-07-17 19:29:59 - by JY

1. when buy a REO, try go directly to the seller agent, once they know you well, they will let you know any great deal coming along, in my area, REO must list in the MLS 3 days before the agent can take in any offer, but if he is willing to work with you, he can twist that by listing the property on Friday before midnight, and take your offer first thing on Monday to meet the 3 day rule, then you for sure you get the first choice, this works out great back when flipping market were good, there are times I resell the property to the next buyer for 30k or 40k without touching the house (too bad those days are long gone).

2. if the bank list a new REO, bank tend to not discount alot, most will be 10%, then every 30 days, the seller agent will summit a market report and request to reduce price, so after 30 or 60 days, you have a better chance to bargain. and sometimes bank will change agent after 60 days if the house not sell.

3. try not to fall in love in any properties, investment is investment, not your primary home, always have an exit strategy and ready to walk or you may overbid the house that can't get out, there is always another deal.

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