Recent REO Success Stories

Foreclosures
19yFollow

Recent REO Success Stories

N/A N/A
Member since 2008 · 74 posts · 0 votes

I've read so many posts about "How To's" and "What am I doing wrong?".

I would love to hear recent REO success stories. If you've purchased an REO in the past 90 days or so, it would be great if you could tell us about it. A little motivation to those that are struggling, that's all.

If you can, tell us what area the property is in,
original list price,
list price at sale,
purchase price - negotiation details,
seller concessions,
days on market,
property condition,
any inspections,
financing,
smooth closing or not,
agent(s) behavior,
market conditions,
etc.

And if you've already listed or flipped the property, how did that work out for you?

You don't have to provide all of the details above, just anything that you would like to share about your successful REO transaction(s).

I look forward to reading your inspiring true stories.

0Reply
78 views

48 Replies

Jump to latestLatest
  • Ruben Morgan
    Banker · Denver, CO · Member since 2008 · 40 posts · 0 votes
    19y

    I should have one shortly.

    I'll keep the thread updated.

    0Reply
  • Colin Turnbull
    winnipeg · Member since 2008 · 90 posts · 0 votes
    19y

    I think a lot of forum members would like to see some success stories

    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    19y

    There are many out here. You just have to search for them.

    http://forums.biggerpockets.com/viewtopic.php?t=11762&highlight=

    0Reply
  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    19y

    Lets keep the thread going with new REO Success stories. If you've got one, please post it here so everyone can stay in tune!

    Podcast Guest on Show #100
    0Reply
  • N/A N/A
    OP
    Member since 2008 · 74 posts · 0 votes
    19y

    Awesome story Nate; Your entire story, and especially your last paragraph should teach volumes to others.

    Most investors don't realize that most asset managers have thresholds that they cannot cross. They [investors] believe that it's OK to offer 65% of the list price when in fact, 99% of the time it's a waste of time, and probably irritating to the swamped asset manager. That's right I said it; Even if the home has been on the market for 60 days, most asset managers approval levels are based on the current list price, which as you pointed out, is reduced every 30 days - most of the time.

    Take it from a former asset manager, with your system of staying on top of prices and timeframes, and making strong offers when the price is right, you're really on to something (as evidenced by your 9 REOs and growing).

    Congratulations my friend and thanks for sharing this valuable and inspiring story.

    0Reply
  • Lou Croce
    Real Estate Investor · Member since 2008 · 33 posts · 1 vote
    19y

    Wow Nate, that is a great story and congrats!

    I'm wondering how low you bid and also what kind of financing you have in place for this? Also, I'm assuming your paying capital gains tax?

    0Reply
  • N/A N/A
    OP
    Member since 2008 · 74 posts · 0 votes
    19y

    Once again great story Nate.

    What was the list price when you bought it?

    My blind guess is that you purchased at 87.72% to 92.60% of the Current LP, depending on whether the home was on the market for 4 months or 5 months.

    57K @ 87.72% = 50K --> 4 months on market
    54K @ 92.60% = 50K --> 5 months on market

    Am I close?

    0Reply
  • N/A N/A
    OP
    Member since 2008 · 74 posts · 0 votes
    19y

    For you and your family Nate, the sky's the limit.

    0Reply
  • N/A N/A
    Member since 2008 · 1 post · 0 votes
    19y
    Originally posted by "mud":
    not an add at all, if it were i would have put my contact info or paid for a banner. all i am saying is yes these deals are happening and the smaller ones seem to be much easier and realistic. now that the banks are allowing investors to buy direct instead of through realtors the investors can get a much better price and easier transaction.

    mud, i think i have seen your 15M and 18M packages. are you sure you are a true provider? or are you just shopping orders?? can you provide receipts/closing statements for transactions that you have closed. i do not need names, just proof that the transactions closed and funded. i have large orders for you if you are for real. 200M to 1B. look forward to your reply!!

    0Reply
  • Juan Castillo
    New to Real Estate · Port St Lucie, FL · Member since 2008 · 12 posts · 0 votes
    19y

    Nate,

    You said that you have a very good realtor who get you these good deals.
    Couple Questions:
    How do find a good realtor for REO's?
    How do you pay them for these properties when you wholesale?
    When wholesaling, is there anything difference when flipping the contract from a person-owned or bank-owned? (I hope I'm making myself clear)

    0Reply
  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    19y

    I've had to remove 7 posts from this thread because they were wither pitches, ads, or they just were completely off topic.

    Please keep to the topic at hand or your post will be removed.

    Podcast Guest on Show #100
    0Reply
  • Mark G.
    Hard Money Lender · Calabasas, CA · Member since 2008 · 10 posts · 0 votes
    19y

    Sooo....anyone close a good REO deal lately? Love to hear the story!

    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    19y

    Nate,

    I am assuming that you are putting down at least $500 bucks and showing proof of funds on your REO's in order to get them under contract? I haven't found a bank yet that doesn't require this.

    Thanks

    0Reply
  • Roc P.
    Philly Area, PA · Member since 2008 · 297 posts · 27 votes
    19y

    Hey everyone great topic and very informative stuff.

    0Reply
  • Greg B.
    Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
    18y

    I just closed on a REO last month. Details:

    Older 2 story frame home
    Divided into 3 rental units
    Located in city just south of Ft. Worth
    Quiet, older neighborhood with lots of rentals
    Asking price $48K, was marketed as a triplex
    I offered $30K cash
    DOM 7
    They countered $40K cash and a short closing date(10 days)
    I was able to do my own inspections
    Discovered 4 kitchens and 4 bathrooms.
    Needs trees trimmed, roof, minor interior repairs and cleanup.
    Should be worth $80K-$100K when finished
    I uncovered a city lien against property for grass cutting(they had to pay for)
    During title work a federal lien was uncovered(they had to pay for)
    We closed on the last possible day at 4:00pm

    Observations:
    I used a buyers agent to represent myself. I have done 2 other deals with her and I know she works hard.
    Listing agent was very little help. She would not return phone calls nor provide pertinent information to my agent. We could not find out the name or address of the title company to provide a deposit check to. She would not provide my agent with the lock box code so we could enter the property to inspect it.

    We were supposed to close on Sept7 at 11:00am and I took off work to close. Their title company agreed to allow me to sign the papers at my title company. We were not provided with the HUD1. We waited by the phone until 10:30 to find out how much the final cashiers check should be made out for. We still received no communication from the sellers end at all. The closing time passed, still no response. We did not receive any comment from them at all until the following Monday. We finally got it closed at the last moment.

    I have bid on many REO's and been successful only with this one. The listing agents I have dealt with are not the same personalities you deal with when they are trying to promote a property. These agents were very much "take or leave it but don't waste my time" type of people. Once I figured that out I know what to expect going in.

    Good luck to all.
    Greg

    0Reply
  • N/A N/A
    OP
    Member since 2008 · 74 posts · 0 votes
    18y

    Good deal Greg.

    I'd like to touch on one of your important observations...

    I must admit, I'm guilty of this.

    A great number of successful REO listing agents perform in this manner. It's a combination of having a more secure stream of business that we can rely on (arrogance to some degree), having lots of work to get done, having heard just about every sales pitch from every investor in our market, and also knowing that in most cases, our properties sell themselves; whether you buy it or not, it'll sell.

    Like all listing agents, I love earning both sides of a sale. But I am also a big proponent of Buyers Agents and I certainly recommend their use.

    Learning the arena in which you plan to operate is paramount. Understanding personalities, motivating factors, likes and dislikes are as important as knowing market stats and trends. You seem to have grasped this concept and are a better investor for doing so.

    Congratulations Greg.

    0Reply
  • Roc P.
    Philly Area, PA · Member since 2008 · 297 posts · 27 votes
    18y

    I've been looking into REO property, 1st time, and it's quite overwhelming with all the info one has to gather, such as liens and so fourth. Just the competition factor is enough to scare away most investors, and lets not forget funding for the whole process.

    BTW congrats on your recent purchase Greg and thank for the informative post about REOs, a lot of good info about the agents and so fourth. Best of luck to you.

    0Reply
  • Greg B.
    Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
    18y

    Thanks for the comments guys. FloridaREOagent, thanks for not taking offense. You REO agents are probably a great bunch of guys, just not the type of agent I expected.

    REOs are a great way to make money and a great way to lose money. You, the investor, need to be able to do as much leg work as you can. Ask a lot of questions of everyone. Try to uncover any unknown information.

    Example, I have had to go to the county clerk's office to look at a deed on a REO so I could find out about the hidden 2nd lien. I would have spent countless hours chasing that turkey if I would not have checked that deed.

    Not all REO's are a good deal but someone still buys them. I have my criteria, that I learned from experience, and I hold fast to it no matter how good the deal looks on the surface.

    Don't expect a lot of hand holding or anyone to stroke your ego. It's truly all on your shoulders.

    Greg

    0Reply
  • Ben Reese
    Real Estate Investor · Driggs, ID · Member since 2008 · 60 posts · 21 votes
    18y

    Nate,

    Thanks for sharing your secrets. Great story! I'm curious about your bank. It sounds as if they are essentially bridging you until you sell. Do they do this without requiring that you have an investor that finances with them? For such short term transactions are they charging points and fees or are they funding you more with a credit line?

    Thanks,

    Ben

    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    18y

    I keep seeing that you guys are checking for liens on these REO's. Correct me if I am wrong, but isn't this what the banks title company is for? I just bought my first REO and will be closing with the next couple of weeks.

    0Reply
  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    18y
    Originally posted by "TC":
    I keep seeing that you guys are checking for liens on these REO's. Correct me if I am wrong, but isn't this what the banks title company is for? I just bought my first REO and will be closing with the next couple of weeks.

    The bank is a seller. They are not the title company.

    The buyer and seller can agree with or without liens remaining. Most deals assume clear, marketable title (no liens, just easements and future property taxes).

    As the buyer you need to make sure you are getting what you expect. Some of the time the bank selling will have a problem with the title and they do not even know it. Documents get lost, title work was done incorrectly in the past, etc.

    Get title insurance and the title insurance company will be specific as to the condition of the title.

    John Corey

    0Reply
  • Greg B.
    Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
    18y

    I agree with John. Also, in the interest of time, I want to uncover any negative info about a prospective property as early as possible. I would really not like chasing a specific deal for 4 months and then get a major surprise at the closing table.

    Greg

    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    18y

    John,

    I understand that Bank is not a title company. I requested to use my title company and bank would not agree to it. They stated that using 2 different title companies, mine and theirs would only slow the closing and complicant the transaction. I sent the earnest money, a certified check made out to the title company that the bank is using. Now, is it safe to assume that this title company will conduct all of the necessary checks and I will have title insurance since they are running everything through a title company?

    Thanks

    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    18y

    k.

    Sounds great.. I am just down the road from you. A 210K house in Kent is certainly a nice house. Thanks for tip on the title too. I am closing on Friday with the title company. They are also out of Cinnci, Accu Title. Strange though, they told my agent that they could not have direct communication with me and they couldn't come to my home. I have a call into them and waiting for a reply. If they want to close, they will speak to me.

    0Reply
  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    18y
    Originally posted by "TC":
    John,

    I understand that Bank is not a title company. I requested to use my title company and bank would not agree to it. They stated that using 2 different title companies, mine and theirs would only slow the closing and complicate the transaction. I sent the earnest money, a certified check made out to the title company that the bank is using. Now, is it safe to assume that this title company will conduct all of the necessary checks and I will have title insurance since they are running everything through a title company?

    Thanks

    Your deal should be clear in the sales contract that you are getting clear title.

    You also should speak with the escrow agent closing the deal and make sure you are buying an owner's policy if you want to know you have title insurance. Mistakes happen and the insurance can cover you.

    The closing process should provide you with a copy of the title report before the deal closes. Read it and understand what is listed as exceptions.

    I almost always buy title insurance. The only exception is when I am more or less covered by a prior title insurance policy. To keep it simple just assume that as the buyer I always get title insurance.

    Note: The policy to cover the lender is not the same as an owner policy. If you have a lender as the buyer I am talking about two policies being issued at closing.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free