Question on wholesaling REO's

Question on wholesaling REO's

Real Estate Investor · Cape Coral, FL · Member since 2008 · 5 posts · 0 votes

I have read a few topics here that people are using bank REO's from Realtor's to wholesale the properties.
My question is: How do you deal with the customer doing a comp search that shows the property is listed with a Realtor? Anyone can go onto that Cyber... and it will show what a property is currently listed at..$$.. How do you handle that situation with the potential new owner?

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  • Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
    18y

    Best to just be honest with them. I tell people first thing that I am a wholesaler and I specialize in bank owned properties. I make it very clear to them upfront that I am buying from the bank, and then selling to them. It also states in my contract (to sell), that the sale is contingent upon me buying the property from the bank.

    I have never had any resistance from any buyer once they found out that the property was listed. If they are getting a good deal, they shouldn't care. If they do- find another buyer.

    Good luck,
    Steph

  • Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
    18y

    Not sure if this is what you are talking about? I found a mobile home on MLS listed at $52.5K. I found the same home listed on a HUD website for $36K with the highest bid at $20K.

  • Real Estate Investor · Cape Coral, FL · Member since 2008 · 5 posts · 0 votes
    18y

    Thank you Steph .. I read and follow your posts .. Great job ...

    Ingrid; Yes that is what I am saying ... I am glad that you also see the price change when looking for comps ... I have really "beefed up" my due dilegence now prior to making offers to the banks ...

    Now I am trying to locate sources for POF for my deals.

    Again thank you both for the fast response and assistance

  • Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
    18y

    Hi Lisa,

    I have heard that Coastal Funding will provide you with a proof of funds letter to submit w your offers. They do transactional funding on short sale and REO deals.

    I have not used them, so can not vouch for their service, but I know of a few wholesalers who are using their pof letter to make offers.

    Try Googling them.

    Good luck,
    Steph

  • Real Estate Investor · Cape Coral, FL · Member since 2008 · 5 posts · 0 votes
    18y

    Thanks Steph... On a POF letter is it OK for the letter be a lttle higher then my offer .. If I get a POF for the exact amount; I can not resubmit a new offer immediately as I usually do .. But with a higher amount is the bank more apt to decline my offer because of my higher POF letter?
    Thanks for your feedback .. Next week you will be a "Mentor" .... lol

  • Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
    18y

    Hi Lisa,

    Yes, it is fine for the amount in your letter to be over what you are offering.

    I don't think it makes a difference to the bank- they just want to see that you have the capability of closing.

    Steph

  • Real Estate Broker · Highlands Ranch, CO · Member since 2008 · 95 posts · 23 votes
    18y

    Personally, I don't think it's a good idea to disclose to any seller that you have more available, than you are offering! Especially if your offer is below asking price. The bank may not notice, but their broker might. Why give them an opening to come back for more!

  • Residential Real Estate Agent · Palm Coast, FL · Member since 2008 · 4 posts · 0 votes
    18y

    Gee Greg, I think I should move to Colorado, in our market I don't think any of the Broker's would try to get the last nickel out of anybody. In Palm Coast Florida there are so many REO’s and regular listings and so few deals that the Broker’s go to the sellers and hammer them to accept. A friend of mine listed a property for $199,900 and presented the Bank with a $175,000 offer and then backed it up with comps that were listed 2 days after the offer came in at $149,000. Is your market really that good?

  • Real Estate Investor · CT · Member since 2008 · 119 posts · 6 votes
    17y

    I wouldnt worry about it too much. If they like your price, then they can buy it. If they wanted it for the REO price, then TOO LATE. Tell them your going to close on it whether they buy it or not.

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