BiggerPockets

Seems like the same story here...Ive talked to a few REO realtors this week and there listings are down significantly. Ive noticed sheriff sale volumes are down as well. I could only imagine there is a big wave of properties coming, just dont know when......

I am currently trying to acquire buy and holds, ive got the $ in the bank but dont want to overpay, its been frustrating. There are properties out there going for more than they should because investors are getting anxious. Ive lost my last two properties and been over asking price on my offers. I am hoping to grab at least one more by this fall.

Any thoughts on when the reo markets will pick up again and start pushing more volume through? Are banks really holdings that much inventory?

Had to post to break up the string of Money man profile pics lol...

I'm finding a few deals. There are about 6 REO agents in town. 3 of them are very fair IMO. Number 4 is fair but sits on offers to raise the bids, REO Agent number 5 has pocket investors, and REO Agent number 6 is pure evil....

I hate it when #5&6 get good listings. I'm about to the point of not even wasting my time with them anymore.

November December this months the houses prices are the lowest$$$$$$$......Inventory.....The banks has to get rid as soon as possible of foreclosures until the new year.....Good Luck

There is no question that the banks are sitting on inventory. They were banking on selling assets as the market recovered.

I work for an REO Broker in L.A. and almost all of our REO listings fall out of escrow at least 2-3 times before closing. Because of the fierce competition that you are describing, buyers will bid up the price just to get in escrow, then perform due dilligence and ask the bank for a reduction. Most the time, the bank won't give them the reduction they want and it will fall out of escrow. My advice, monitor these properties to see if they fall out of escrow. I sold a condo last month that fell out of escrow 3 times initially, so the bank got fed up and slashed the price by $75k because they realized they were asking to much. Because my buyer had already done his due dilligence previously on the property, he was able to offer cash and waived all contingencies.

Also, you may have better luck right now searching for REO or probate properties that are overpriced and have been sitting on the market for a longer time. These properties have to sell and since they have been sitting, they are off the radar of most investors.

I agree Matt. 80% of the deals I've made were w/o an agent. One was in fact a long distance handshake w/o a contract. The closing attorney flipped out in a good way. Every chance I get I tell other multi-unit owners I'm a buyer. The ones in there 70's are a great target!

Hey Matt K. how are you finding your deals without the competition? I've tried marketing, but haven't had much luck. Maybe because I'm terrible at it idk. What's your secret?
Thanks!

Matt, do you mean absentee owners, probates, short sales etc? Do you have a way you do the marketing? Would like to know more. Thank you.

I'm finding alot of competition in my area too.

Greg,
You are completely right! One of my close friends is an investor with 136 properties and he is an MLS junkie. We always have the same conversation and he complains that deals are getting so hard to come by. I have invested for over 15 years and probably have not bought one thing on the MLS in the past 8!
For example I have one deal I got from a guardianship attorney, another from a friend, another from a colleague right here on BP that is out of town and reached out to me because he had a contract in my town and wanted me to flip it. etc... The list really goes on and on.

Networking is the key!! Join a local BNI group and let the world know what you do!! My branding of Rob The House Guy has helped me a ton in my local market. I can't tell you how many times I walk through a mall or meet someone new and they say, HEY, YOUR ROB THE HOUSE GUY!

I am not telling you that to impress you, but to impress upon you that if everyone knows you are looking for deals, they will fall in your lap like crazy!

Good luck! :mrgreen: