Is This A Good Deal from an REO "Consultant"?
Someone recently contacted me and wanted me to pay him for an introduction to an REO company so I could bid on properties before they went to auction but this person would charge me thousand of dollars in fees on top of the price of the REO. Is this worth it? Couldn't I just contact the REO company myself or use one of the many auction sites to just big on the property?
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
You're Not going to get any advance looks at reo's before they hit the market. This would be a complete waste of money.
Although I have been fortunate to see the interior of several REO properties prior to them being on the MLS, that wasn't accomplished via some "consultant" - it's about forming the right relationships that will get you there. That was advice that @Will Barnard posted a number of years ago ...
Thank you @Steve Babiak
and @Wayne Brooks
It is very good to have such experience weighing in. Basically he would introduce me to the REO person and they (the REO Vice President) would let me bid on the properties or find me what I wanted. It sounds fishy or just paying for a relationship that I assume I could get myself if I really tried. I was not sure though if maybe it was harder than it sounds. Even so, that much EVERYTIME I buy a property is a lot.
This is the second person that offered me the same thing.
Sounds fishy to me. Is he willing to be paid if and only if he gets you a deal? If not, no thanks.
He only gets paid if a deal is consummated but gets paid on each deal after this one too that I do with that REO mortgage company.
I have just never heard of this before and am not as experienced as any of the posters so far. I had assumed someone else may have run into this before or knew if maybe it was so hard to get these deals that it could be a good deal even if it sounds bad.
What do you mean before they go to auction? From what I have read properties that have already gone through forcloser auctions and are not sold are then turned over to the bank and the liens and title are cleared. And there called REO properties real estate owned then there was something like the bank has the option to wholesale several properties and sell them to another company (discounted). Or sell them at highest bid as a cash sale. The properties I have seen where listed on the MLS and where through homepath.
From what I can tell they are saying they will let you bid before it goes to auction. If the bank accepts they pull it from the auction block. I know that this exists just a matter if $4,000 is worth it.
Maybe they are saying you can place bid prior to going on MLS. I believe once It has gone through foreclosure It is no longer auctioned off. It will be sold to person with highest bid. But at any rate that sounds high I would look online for REO's or talk with buyers agent to find you something. I only have experience with one property that I am looking at and It is through homepath. And part of that listing Is (called First look) where owner /occ has 30days to bid on property before someone looking for Investment property Is able to bid. So getting early preview would not help much but I do not know If all property's are listed on MLS. So If they had additional property's that you would get access too Is different but worth the price?