BiggerPockets

I've read so many posts about " How To's" and " What am I doing wrong?" .

I would love to hear recent REO success stories. If you've purchased an REO in the past 90 days or so, it would be great if you could tell us about it. A little motivation to those that are struggling, that's all.

If you can, tell us what area the property is in,
original list price,
list price at sale,
purchase price - negotiation details,
seller concessions,
days on market,
property condition,
any inspections,
financing,
smooth closing or not,
agent(s) behavior,
market conditions,
etc.

And if you've already listed or flipped the property, how did that work out for you?

You don't have to provide all of the details above, just anything that you would like to share about your successful REO transaction(s).

I look forward to reading your inspiring true stories.

I think a lot of forum members would like to see some success stories

Lets keep the thread going with new REO Success stories. If you've got one, please post it here so everyone can stay in tune!

Awesome story Nate; Your entire story, and especially your last paragraph should teach volumes to others.

Sometimes you have to wait on them for a long time (hence the deal above) but its sure worth it in the end. Also.....its really important to know how REO's work. " Typically" they go down in price every month. Usually around here its 3-5K a month. Sometimes I've seen smaller and sometimes I've seen them drop by 20K! I'm not kidding. That's why you have to have a really good realtor who knows what they are doing and makes sure that you get that info asap before the other investor scoop them up.

Most investors don't realize that most asset managers have thresholds that they cannot cross. They [investors] believe that it's OK to offer 65% of the list price when in fact, 99% of the time it's a waste of time, and probably irritating to the swamped asset manager. That's right I said it; Even if the home has been on the market for 60 days, most asset managers approval levels are based on the current list price, which as you pointed out, is reduced every 30 days - most of the time.

Unless its priced right we keep tabs on them until they get into a price range where its a buy. Sometimes you have to wait on them for a long time (hence the deal above) but its sure worth it in the end.

Take it from a former asset manager, with your system of staying on top of prices and timeframes, and making strong offers when the price is right, you're really on to something (as evidenced by your 9 REOs and growing).

Congratulations my friend and thanks for sharing this valuable and inspiring story.

Bought for 50K. Was on the market for 70K about 4-5 months ago.

Once again great story Nate.

What was the list price when you bought it?

My blind guess is that you purchased at 87.72% to 92.60% of the Current LP, depending on whether the home was on the market for 4 months or 5 months.

57K @ 87.72% = 50K --> 4 months on market
54K @ 92.60% = 50K --> 5 months on market

Am I close?

For you and your family Nate, the sky's the limit.

Nate,

You said that you have a very good realtor who get you these good deals.
Couple Questions:
How do find a good realtor for REO's?
How do you pay them for these properties when you wholesale?
When wholesaling, is there anything difference when flipping the contract from a person-owned or bank-owned? (I hope I'm making myself clear)

I've had to remove 7 posts from this thread because they were wither pitches, ads, or they just were completely off topic.

Please keep to the topic at hand or your post will be removed.

Nate,

I am assuming that you are putting down at least $500 bucks and showing proof of funds on your REO's in order to get them under contract? I haven't found a bank yet that doesn't require this.

Thanks

I just closed on a REO last month. Details:

Older 2 story frame home
Divided into 3 rental units
Located in city just south of Ft. Worth
Quiet, older neighborhood with lots of rentals
Asking price $48K, was marketed as a triplex
I offered $30K cash
DOM 7
They countered $40K cash and a short closing date(10 days)
I was able to do my own inspections
Discovered 4 kitchens and 4 bathrooms.
Needs trees trimmed, roof, minor interior repairs and cleanup.
Should be worth $80K-$100K when finished
I uncovered a city lien against property for grass cutting(they had to pay for)
During title work a federal lien was uncovered(they had to pay for)
We closed on the last possible day at 4:00pm

Observations:
I used a buyers agent to represent myself. I have done 2 other deals with her and I know she works hard.
Listing agent was very little help. She would not return phone calls nor provide pertinent information to my agent. We could not find out the name or address of the title company to provide a deposit check to. She would not provide my agent with the lock box code so we could enter the property to inspect it.

We were supposed to close on Sept7 at 11:00am and I took off work to close. Their title company agreed to allow me to sign the papers at my title company. We were not provided with the HUD1. We waited by the phone until 10:30 to find out how much the final cashiers check should be made out for. We still received no communication from the sellers end at all. The closing time passed, still no response. We did not receive any comment from them at all until the following Monday. We finally got it closed at the last moment.

I have bid on many REO's and been successful only with this one. The listing agents I have dealt with are not the same personalities you deal with when they are trying to promote a property. These agents were very much " take or leave it but don't waste my time" type of people. Once I figured that out I know what to expect going in.

Good luck to all.
Greg