Can't get keys for REO, can't run numbers for rehab

12 Replies

Hello BP,

I'm trying to look at my first REO, but can't work my numbers because the agent is getting static from the seller. Here is what she emailed regarding this:

I am going to give you my best advise.... If you are at all interested, you can submit an offer subject to a visual inspection of the Home, due to the lack of being able to look prior to submitting an offer.

This way it can give you a chance to get it off the Market and investigate the property/home so no other Buyer can get it. The Property will be contingent upon the Banks acceptance of your offer. At this price it will be a great deal for you. It can become a great rental, you can flip it or live in it yourself with equity after you make the repairs.

I hate the fact the the Seller is not cooperating with the showings, but eventually she will have to. Please advise as I did not want to leave you hanging.

My question is do I take her advice and submit a full offer just to tie it up?  Then have a contractor come in and pick the place apart and tell the bank we'll need to lower our offer because of all of the work that needs to be done to it (it's a fixer).  

Also, do you think this agent is working in my best interest?  Should I use her to make the offer (currently don't have an agent).

Thanks for the advice!

It's common to make a an offer when no you can't get in to make an inspection.  You'll have an inspection period to bail if you want.  But, plan on paying close to what you get it under contract for.  Banks are used to inflated BS contractor quotes for trying to negotiate after.

I'm in the same boat now. I submitted the offer on a REO, the bank came back with a counter offer. We bumped ourselves up a little and now... We can't get in the property again! We walked through it once very briefly and submitted the offer. Now the bank changed agents and my agent can't get the code to get in through the door. The banks agent is MIA. No response to phone calls or emails. I'm about to call the bank and complain about their agent not cooperating. Maybe it's taking things a little too far but... I'm trying to make money here. I'd call the bank REO dept directly and see what they say.

Originally posted by @Jeff Caravalho :

Wayne, Thanks for the tip.  Have you ever heard of taking GC's repair list to the bank w/ pictures to justify low ball offer?

I'm saying it's an old, old ploy...and the banks have seen it thousands of times, and ignore it.

Originally posted by @Derek W. :

Don't you own a wholesale buyers key?

 I worked construction for a guy who used to pre-inspect sheriff sale properties like that.

After reading your post, it sounds like the home is occupied by the previous owner or tenant. If that is the case, this is quite common and yes, you should make the offer contingent upon your physical inspection of interior and purchase should be subject to you obtaining possession at close of escrow, i.e. seller to deliver property vacant.

With REO properties, you always have a better chance going direct to the selling agent. If that agent is MIA, all you can do is submit the offer and keep trying to make contact.

I can read the confidential notes about the property if you want me to.  working with banks as sellers basically is frustrating. My experience is that you can find many thing wrong with the house and tell them and them to lower the price and they will not. There is not a lot of inventory so they can just wait it out until they find another buyer who will pay the price. or just lower the price many months down the road. message me if you want me to go into the confidential remarks and tell them to you. I have a CA real estate license.

Gordon,

We got in, and after running the numbers it did not pencil (lots of repairs).  I just made an offer on the property way below asking.  Not expecting to get it at all. 

What do you mean by "Confidential Notes"? Thx.