Los Angeles, CA · Member since 2010 · 5 posts · 0 votes
Gosh each time I call on an reo it has "just" received an accepted offer....*can u hear my "little violin" playing in the back ground*
I commend all reo buyers with a successful buy record....it's HARD out there! Each reo I have found someone else thinks it's better than I do and worth more too quicker than I can pick up the phone. What is the 15 day wait (HomePath) for if banks are going to accept an offer in 3 days of going public??? According to BP I am supposed to develop a relationship wt brokers/realtors it's just me and my meager savings I am not exactly a heavy duty investor yet. What is a light duty investor supposed to do...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
A couple thoughts:
- Don't hesitate to look at potential deals. Every morning look at what is new on the MLS that day, and if anything looks good, look at it immediately. If you're interested in submitting an offer, do so before 5pm the day the property is listed (or at worst, before the agent gets to work the next morning). This way, you'll never have to worry about an accepted offer coming in before you submit yours.
- Go after properties that have been sitting on the MLS for at least 60 days. These are probably priced too high, but generally the banks are willing to negotiate a bit more. And obviously there is little competition for these (if people wanted them, they wouldn't still be on the MLS after 60 days).
- Stay away from Fannie Mae properties that now allow owner occupants to bid before investors.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
A couple thoughts:
- Don't hesitate to look at potential deals. Every morning look at what is new on the MLS that day, and if anything looks good, look at it immediately. If you're interested in submitting an offer, do so before 5pm the day the property is listed (or at worst, before the agent gets to work the next morning). This way, you'll never have to worry about an accepted offer coming in before you submit yours.
- Go after properties that have been sitting on the MLS for at least 60 days. These are probably priced too high, but generally the banks are willing to negotiate a bit more. And obviously there is little competition for these (if people wanted them, they wouldn't still be on the MLS after 60 days).
- Stay away from Fannie Mae properties that now allow owner occupants to bid before investors.
Accountant · West Chester, PA · Member since 2009 · 14 posts · 0 votes
15y
hi scott...i noticed at the end of your post you mentioned to stay away from Homepath- first look properties that allow OO to bid before investors. How come? My husband and I are looking at making an offer before the 14 day period on a homepath home (we are planning to OO) we are not sure if we should wait until the 14 days are up to see if any offers were made or make an offer ASAP. There is another homepath home on the same street only 300 square feet bigger, similar style/age that is listed for 60K more than the home we are looking at. We don't want to miss out on this house since it is not only an investment but home for us.
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
Jennifer, I don't want to speak for J., but I think he was talking about this from an investor's perspective. If you are looking at a property for your own home, that's different, at least in my opinion.
I am curious, though, J., why you feel that way even in investor situations. Seems to me that most foreclosures are a little beat up, and that many owner-occupants can't see past it. I would be curious to see what percentage of FNMA properties go under contract during that first-look period.
I know I've seen a few very nice duplexes that were FNMA properties, and I've never seen one go under contract during the first-look period. I don't think most owner-occupants want to be landlords, too.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Yup, exactly what Paul said...
As an owner occupant, I would highly recommend that you go after Homepath properties; they are often underpriced and without competition from investors during the First Look period, you have a huge opportunity to get a great deal!
As for why I didn't recommend Homepath above, that was because the OP was getting frustrated with being beat out on offers. First Look properties that open to investors often get many offers the first day they open up, for a couple reasons -- 1. All the OO have been weeded out, and 2. Investors have had two weeks to find the deal on the MLS and have time to prepare their offers.
So, while Homepath properties may be great investments, if you're getting frustrated by being beaten out by other investors, going after Homepath properties will end up causing even more frustration.
I personally love Homepath properties...but I accept the fact that there will be a lot of competition on the good ones that get past the First Look period...