Is This The Right Bird Dogging Process....?
1. Find an investor and figure out what they are looking for.
2. FInd properties/sellers according to investors prefferences.
3. Evaluate property and "due allegiance".
4. If acceptable, send home owners/property information to seller.
Should #4 be "Send homeowners/property info to the investor"?
The bank that owns the REO will loan to you if you qualify for a loan. However, you will not talk to the same department that is trying to sell the house because their job is to just unload the invetory. Lets say Bank of America has an REO, you can walk into Bank of America and obtain financing if you qualify. They wont give you financing, though, just to get the house sold because whats to say you will pay them and they wont be foreclosing again in 6 months.
Your best bet is to get a good mortgage broker on your "team". By doing this, they can get you pre-approved (which is a very smart thing to do) to buy a house. They can use the same pre-approval for many houses. Not to mention, they will only have to pull your credit once and can shop to hundreds of banks to get you the best rates and terms.
As mentioned above, most REOs are now handled by realtors. They will not even accept your offer and show it to the bank unless you provide a pre-approval or proof of funds to purchase. So get your pre-approval and start shopping.
If this is CA you need cash or certified check at the time of the auction.
I have found haing a fist full of cash or a hard money lender are the only way to go.
econrad,
What I was saying is that it is best to get a Licensed Mortgage Broker to work with you. Find one that is familiar with investment loans. Your local REIA can probably help with this. The reason you want a broker instead of a lender is that every deal you do will have different issues attached to them, ie seasoning of title, 90% vs 100% LTV, etc. A broker has lots of lenders they can use so they can find the best lender for the loan you need. Every lender has about 3 niche products they specialize in (even thought they offer all types of loans). If you use the same lender for every loan you do, you are probably not getting the best rates/terms. Not to mention that in todays market, lenders are changing their programs almost daily.
Do this, find yourself a lender and a Licensed Mortgage Broker that is knowledgeable with investor loans. Have them both give you a quote when you find your next deal and see what they have to offer. If you find the right Licensed Mortgage Broker, I can assure you that they will be able to offer a better loan than the lender. I am a Licensed Mortgage Broker and I know because I have dealt with people who came to me with a quote from a lender. I even did a loan where they went to Bank of America and I was able to get them a loan through Bank of America for less. Lenders depend on brokers to supply them business so they give us great wholesale rates. Even if Bank of America makes less on that loan because the borrower came to me, they will make more in the long run because I send them business that they would have never gotten if I did not place it with them.
Good luck
Was the value in the property or in the house?
Get estimates on demolition and reconstruction?
to me it depends on how solid and profitable the deal is.
I might pay 5% rather then 3% for a stronger deal.
Hey,
As you have said have no experience in REI, so what are you bringing to the table in order to earn 3%???
For years (and years) people have been asking what does BD pay and the truthful answer is a couple hundred bucks.
Bruce
This is a good attitude, I just bird dogged my first deal, my investor paid me $500 on a deal he flipped to someone else. I know is margin was very thin, but he told me to keep bringing him deals. And if the check clears, I definitely will!