Multiple offers on REO's

[Daniel Bradshaw]

Hey Everybody,

Let's say I have a proof of funds letter for $100,000 and I make 20 offers on REO's at extremely low prices only expecting to hear something back about 1 property or even none of them and I hear back from 3 banks and they accept my offers.... Am I bound to buy those 3 properties? What if the total amount adds up to more money than I can get my hands on? Would I be in some sort of trouble?

Thanks
Daniel

[J Scott]

First, you aren't obligated to buy the property until the contract and all addenda are signed by both parties. Since pretty much every REO purchase is going to come with at least one contract addendum, if you don't sign it, then there is no binding contract and you're out of the deal.

So, you don't have to worry about being locked into multiple deals just because you submitted offers on multiple REOs.

Now, that said, you could piss off the listing agent and/or the asset manager/bank by doing this. That listing agent may interpret your action as meaning you're not a serious investor and it could hurt your chances of getting any of his/her properties under contract in the future.