@Bryan Levine, I hope you've got your $265k Buyers locked in before you offer the Bank $240k! (ie. ones that are also OK with your strategy of tricking the Banks into thinking YOU'RE the Buyer)...

@Ivan Vargas @Lucas Machado @Brent CoombsI have been using several bank websites to connect to their REO sections. form there i have identified several realtors who deal specifically with that. From there i identified one or two who seem to be hungry. They really did not have anything at the moment they thought was worthwhile. I analyzed a couple deals and came up with numbers that indicated to hold off for now. For example I showed a .7% percent return on money on one deal and on another I showed monthly cash flow to be $240 in the red. Problem was, I got a little disenchanted and did not analyze anymore deals that week. I ought to have kept going... What do you think about my strategy to locate REO's ?

@Brent Coombs I am not saying the banks should "give away money". In response to the OP, there are great deals to be found in REO's, however they turn into not so great deals when the competition comes in and drives the price up. Some banks, as the OP mentioned, set their prices at market - estimated repair cost which depending on actual repair cost might end up being equal to or higher than ARV. For example another REO I went after: asking price was $265k, and I figured around $25k in repairs. ARV was around $309-319k. I offered $240k and of course got rejected. At $265k that would be great for an owner occupant who planned to live in the house and just wanted to customize it to their liking.

@Bryan Levine as @Ivan Vargas stated, there is a lot of competition here driving up prices. As such, the best deals are the ones that you get yourself, where there's fewer competition.

@Ivan Vargas, why should Banks give away money with "better deals"?...

REO's should be the better deals. Some are priced well below market here in Palm Beach however there is so much competition that the offers go way above asking. Last one I went after was asking $109,900 I offered $126,500 and got beat out by another who offered $135k. ARV would have been somewhere in the $220-250k range and from my walk through I figured 40-50k in repairs (needed a new roof).

Followed Discussions Followed Categories Followed People Followed Locations

Buying & Selling Real Estate

Market News & Data

Market Trends & Data

Buying & Selling Real Estate

Out of State Investing

Real Estate News & Current Events

Real Estate Technology

Investor Mindset

General Info

BiggerPockets Exclusive PRO Area

PRO

General Real Estate Investing

BPCON

New Member Introductions

Questions About BiggerPockets & Official Site Announcements

Off Topic

Starting Out

Real Estate Success Stories

Real Estate Horror Stories

Real Estate Strategies

House Hacking

BRRRR - Buy, Rehab, Rent, Refinance, Repeat

Commercial Real Estate Investing

Innovative Strategies

Mobile Home Park Investing

Land & New Construction

Multi-Family and Apartment Investing

Wholesaling

Rehabbing & House Flipping

Short-Term & Vacation Rental Discussions presented by

Tax Liens & Mortgage Notes

Medium-Term Rentals

Buying & Selling Small Businesses

Outdoor Hospitality

Landlording & Rental Properties

General Landlording & Rental Properties

Managing Your Property

Marketing Your Property

Tenant Screening

First-Time Home Buyer

Real Estate Professionals

Mortgage Brokers & Lenders

Contractors

Real Estate Agent

Financial, Tax, & Legal

Personal Finance

Creative Real Estate Financing presented by

Private Lending & Conventional Mortgage Advice

Insurance

Tax, SDIRAs & Cost Segregation presented by

Foreclosures

1031 Exchanges presented by

Goals, Business Plans & Entities

Legal & Legislation

Real Estate Classifieds

Classifieds

Real Estate Events & Meetups

Reviews & Feedback

Ask About A Real Estate Company

Real Estate Deal Analysis & Advice

Guru, Book, & Course Reviews

Syndications & Passive Real Estate Investing

Updated about 9 years ago on 05/02/2016. Most recent reply

8
Posts: 0
Votes

Bryan LevinePoster

Investor
Delray Beach, FL

Buying & Selling Real Estate

Best deals REO's?

Bryan LevinePoster

Investor
Delray Beach, FL

Posted May 01, 2016 14:57

Is it safe to say the best deals out there are typically REO's . Is the answer to this question regional at all? Down here in Palm beach Florida I noticed the bank REO's aren't that great of a deal. REO ' s here seem to be just slightly below market value. But after you factor in closing cost...not really that great of a deal . What are your thoughts ?

0 Votes

6 Replies

Jump to Last Reply

Sort By:

Oldest

Loading replies...

Struggling to find reliable real estate advice?

Join over 3 million real estate investors to build connections, learn from others, and share your journey — all for free!

Your Profile Views

Curious to see who's interested in your profile? Unlock your views with Pro

Connect with others

7 day free trial. Cancel anytime.

PRO

Upgrade to Pro

Market Finder - key investor metrics for all US markets

Deal Finder - investor-focused filters and notifications for new properties

Calculators - Unlimited access to 9+ property analysis calculators

Find an Agent

Find & Match With an Investment Friendly Real Estate Agent

Enter your market to get started

Rent Estimator

Address or ZIP