My background: I'm 34 yrs old, started out as an RE agent in 2005. I love and have such a passion for real estate and every single component within the business. But, being a RE agent wasn't exactly for me. I would never regret a day that I became an agent because it was the beginning to a learning experience I would have not had other wise. I went from being an agent to teaching children with autism for 11 years and all my free time In between teaching went to researching all aspects of RE. I took a big risk and resigned 2 1/2 yrs ago to follow my passion and opened my own RE investment company. I invested in properties in 3 out of the 5 boroughs in NY leading me all the way to investing in the Philly market.
Now cut to Only 5 days ago, I had started to explore upstate NY for awhile now to widen my rental portfolio, I mostly flipped in the past and kept only 4 rentals. The only time I ever used an agent was to sell only two of my properties. I do all of the footwork myself.
Last week I find what I believe to be "a steal" in this specific area I'm interested in. I call the agent send my intent to purchase, bank statements, articles of org, etc. Everything she requested from me.
No response not even a conformation email from her.
So, naturally my anxiety starts to turn to frustration. I emailed her today a long (not rude) but stern email for her lack of responses. She emails me back one sentence "Preparing contracts for you to sign before I can submit" THATS ALL! Please can someone make sense of this for me. I never purchased a Fannie Mea to property and never had an agent have to write up contracts in order to submit an offer. I have waited 5 days for "ME" to have to contact her to get some sort of barring as to where my offer stands. I did some research and most of what I read said FM is fairly quick with a counter offer, accepted offer, or denial.
Sorry for the rant but as an investor most of us know that timing is crucial and my anxiety waiting for a response is even more crucial to my health, it's beyond frustrating for me lol. Thanks in advance!
Not sure what your "intent to purchase" is, but generally an "offer" is a signed contract, the local realtor contract. REO agents are generally the absolute worst as being responsive and dealing with buyers. You're better off with your own agent, submitting an offer. Some Fannie properties are offered on this way, and some your offer has to be submitted online.
I'm recently under contract on a Fannie Mae property. Submitted offer on a Friday and counter was in by Monday morning. I had to sign and initial Fannie Mae's addendum in order to put in the original offer which was submitted online by my Agent... hope this helps.
My letter of intent includes both a purchase price (offer) and an explanation of the assumptions that the purchase price is based upon. My letter provides a very clear outline of the proposed transaction so we can negotiate before committing to a "contract." When I put an offer in on any property I always create a letter of intent, I prefer to have my proposed transactions in writing rather then spoken words for my own benefit of a paper trail.
I'm just confused as to why she has to write up "contracts" first before she introduces my offer. I don't know I'm not familiar with how Fannie Mae properties work. I did see on the website I could propose an offer online or through agent, I assumed the agent would be my best bet. Now I'm thinking the computer offer may have been more affective.
FNMA will not even consider your offer unless it is in writing on a star approved contract along with their 12 page or so addendum and proof of funds. There are no exceptions to their policy
@Angie Williams You need to forget about the idea of a letter of intent, particularly with an REO.....it simply is Not an offer, and will be ignored every time. Get an agent.
Thank you!! That's the information I was curious about and looking for. I just needed a better understanding on how Fannie Mae properties are sold and the process. The contract aspect is what I was a bit confused about. Thank you again.
@Wayne Brooks Thank you for your opinion. But with all due respect I owned, sold, and rented approximately 23 properties in the past two years that were bought in foreclosure or as short sales. My question was pertaining to a Fannie Mae property that I have never dealt with prior, not how my offer was presented. But Greg has explained it to me and now I understand what the agent meant by submitting my offer with a written contract.
My letter of intent to purchase is my "offer." I mainly use it with bigger purchases such as multi families and buildings. If I would have just used the word "offer" we wouldn't be having this back and forth about my LOI. So let's just say my offer. That wasn't my question of topic to begin with, I just wanted advice on a FM property. Also, I do not need an agent seeing I have had my RE license since 2005. I do not use my license due to the fact I opened my own investment company. Thank you for your response anyways.
It's clear to me, as it is to @Wayne Brooks that even though you are a licensed agent that you need to enlist the services of an agent. Not understanding the REO process here is going to come back and bite you.
@Russell Brazil Thanks. So in order for me to try at getting this property I should dismiss the listing agent? She is apparently still writing up contracts for my offer, and find another agent to put my offer in a second time?
I'm not sure if you read my responses I understand REO's clearly cause that's what I invest in. I do not and have never had to deal with a Fannie Mae property. My properties have been short sales from home owners and foreclosures I found on my own and dealt directly with the bank or the listing agent for the bank.
@Angie Williams I also agree with Russell. Finding someone to represent you will not only protect your personal interests, it will save you some of the frustration you are already experiencing.
If you have an active license in NY, you can submit the offer your self through Homepath.com . The vast majority of FNMA listings offer online submission. You will need to follow the instructions to a t but you can also collect a commission
Thanks everyone, listing Agent got back to me finally yesterday. She sent me the "contract" that Greg helpfully explained to me in his prior post. So, 18 pages later my offer is in as of today. I hope I get some word back within 24-48 hours. Fingers crossed!!
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