REO Question
Hi Guys I have located a home in a good area that I would like to purchase for my family to live in and fix up. Seems to have a lot of good qualities( for me that is lol) it needs a lot of "prttying"work outside and in. the house is listing at 123k. it has been listed for about 8 months or so. The comparables in the area are going for between 190 and 210k. I would like to lowball them to get enough money back out of the equity to have about 10k for repairs and prettying it up so that the total I have in it will be about 100k-110k what I need is some advice on how to deal with the broker doing the REO for the bank. Tips or anything like that to get them to accept the lower offer? or how much longer it will take for the bank to gt really motivated.
Thanks
Joe
Your numbers are right in line for obtaining mortgage and fixup money from a hard money lender. Looks like your worst case is 70% if you add in 10% for repairs.
You might want to look at www.rehabfunding.com, when last I looked, they even had a 6 month no payment plan. You pay for that, of course, in points, but you could subtract that off your offer.
Bryan
so give 'em anything they want for a price, as long as you get it back in the terms.
Start talking to the bank. Make an offer you figure they won't accept but let the broker know it is your opening salvo.
Next step, keep making offers. Have the bank finance your renovations-- come up with a contractor to price what you want done at full retail (but don't try to pad it too much-- the bank will figure it out) and tell the bank this is how much financing you need to make the deal happen.
One day, and its probably not too far off, somebody at the bank (or their regulators) is going to say, "move this dog" by expressing interest via multiple offers you are the most likely phone call that day.
Mark
Joe,Come up with what your maximum bid would be. Keep resubmitting the same bid weekly until they sell you or someone else the house!!!
