1. Can i have an agreement with the bank on a reo if my credit is bad and i have now income? Should I bring in an agent?
2. How can i estimate ARV if seller will not allow me to walk through sue to tenant occupancy? Fyi: last update dine on this property was in 1996.
3. How can i structure this deal to be a win win fir all?
Scenero: bank owns property reo
4bed 2 bath needs cosmetic updates on outside. Sqft is 1906 in total. The lot sits on .99 acres. There is no buyers premium and is not yet listed on mls. Will be auction at the end of year. Last sold in aug 2002 for $154,900. Est range in value for this area is $136k-$152k. Comps in area are showing 3 bed 2 baths sold between 94k - $204k. This property would be closure toward the 200k. If i can do this deal what would be the best scenerio for the bank to say yes?
There's no structuring involved. You simply have to be the highest bid, meet their undisclosed reserve, and show the ability to buy, either a preapproval or cash for the purchase price. Otherwise, you can't buy it.
wayne is exactly right. if you do get the high bid and buy it, you then have to get the tenants out of the place. that can be challenging. at that point, you can see what the inside looks like. at this point, if no one gets to see the inside, well, that just means the price you will offer is just that much less. you have to assume, then, that it is a total loss in the inside
thanks guys you both have been very helpful. Need to find a buyer. Figure out the max to offer and fo below to see if they will counter offer. If i bring in an agent i can offer him 100% commission to close deal. Any suggestions on how to approach my agent with this deal?
Though not always effective, if the seller will let you, I've found it helpful to visit with the tenants prior to the close of the deal. I would offer them something called "Cash for Keys".
Usually, I would offer them $500 to $1000 to peacefully turn the property over to me upon closing. The money was conditioned on a checklist that I gave them prior to the close that detailed what the exact conditions of each of the requirements were, "broom-clean, free of debris, all seller-owned appliances left in good working order" etc.
Many of the tenants, knowing that the bank would likely evict them in a few months anyway, were cooperative enough to leave the property in "not-horrible" condition. One time though, I did have the tenant leave everything clean, but the took the garbage disposal with them. :-)
wow rob green a light bulb just went off. Nothing saying i cant use direct mail to offer them a deal. But this deal came in my email and i know where this property is. Also the value of homes there are increasing. But i need to check to see who owns it and if its tenants send letter to work something out. But if bank owns have to structure offer to first plan using a realtor. I see potential in this property but numbers have to make sense or its null and void.
Most REO's are listed meaning that the bank has already agreed to pay a buyer's agent commission. This might be a good opportunity for you to find an agent who will help you get into deals like this.
I recommend asking for investor/buyer agent recommendations here on BP.
thank you william for your advice. I will keep everyone posted to my progress.
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