how many bids on REO's until I get one?
There's an REO I'm interested in. The bank, through a real estate dealer, is asking 85,000, but the real estate dealer says that there are multiple investors vying for the same thing and I should go as high as I can, and as high as I think it is worth it to me to get the house, as the banks look for the highest offer and fast closing, and there are multiple cash offers.
Here's my dilemma. I have to take the time and effort to liquidate a deferred annuity (18,000) and empty a retirement account (5,000) and add it to ALL my savings in order to come up with 90,000, so I can offer 90,000. It's tight, as there will of course be closing costs, and some renovation costs, but I want to show I have the money in the account.
I can open an LLC for 250-300 dollars within a week, or I can just work with a title company to show a sort of temporary LLC in case I don't get the house.
I need to put down earnest money (say, 1,000).
All of this requires time, effort and a bit of difficulty as I live overseas.
I know I won't get every REO I bid for, but I was wondering if it is worth it to do all this, assuming the bank will reject my offer, in the hope that there will eventually be a property that is worth what I offer for it, and I will get it if I keep making offers.
Also, if I show I have an LLC that turns a profit, what are the tax implications? How are the possibilities for getting bank loans/mortgages for another property affected by having such an LLC?
Thank you for all your advice.
shoshana shulman