Is a $10 REO worth it?

4 Replies

I live in a town where there is a predicted oil boom, already the housing prices have gone up at least 20k over the past 2 years. I am looking to find cheaper bank owned real estate to at least get my feet in. I found a couple of REO's that are transfer priced at $10 could anyone shed some light/insight on the REO purchases process and if these would be worth scooping up for the time.

Thanks in Advance

Josh M.

"Transfer price" for $10 doesn't mean you can buy it for $10, it means nothing.  It means....at the auction, the bank announced some minimum bid necessary for them to let it go, say $80k.  No one bid this, so the bank got it back for an opening bid of $10.  It used to be entertaining to watch people come to the foreclosure auctions, when they were live, thinking they could buy a house for $200, since they saw all these $100 prices the bank took the properties back for.

Originally posted by @Wayne Brooks:

"Transfer price" for $10 doesn't mean you can buy it for $10, it means nothing.  It means....at the auction, the bank announced some minimum bid necessary for them to let it go, say $80k.  No one bid this, so the bank got it back for an opening bid of $10.  It used to be entertaining to watch people come to the foreclosure auctions, when they were live, thinking they could buy a house for $200, since they saw all these $100 prices the bank took the properties back for.

 I was just at a live foreclosure auction at the city hall steps in Orange, CA. What other foreclosure auctions are not live anymore?

Medium silverwood stacked logoChristopher Winkler, Silverwood Capital, LLC | 1‑949‑791‑7904 | http://silverwoodllc.com

Most Florida auctions are online now, not as much fun.

Wayne explained this particular situation and not actually being able to buy homes for $10.

There are other situations where you can pick homes up for almost nothing. The vast majority of the time they are completely worthless. Would cost much more than AR to fix it up.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | OH Agent # 2015001161 | Podcast Guest on Show #127

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