Have question on buying REO

[Jason Kim]

I want to buy REO property to fix and flip. Looking to buy one around 40k to 50k range but fund is not fully available. Ofcourse the one that i would buy would be the best one available for my criteria, and may also be the one that many investors would favor as well. Therefore, im assuming that few people could bid the deal at same time on that property. So i would like to know..
1. if i use bank loan to purchase, would i loose the deal to a cash buyer if there is one with same bidding amount? and what happens if i bid higher than a cash buyer?
2. since the property is REO property, do banks prefer cash buyer for properties around that price range?

Thank you in advance. :lol:

[J Scott]

Banks prefer cash over financing, and in many cases prefer owner occupants over investors...

So, being an investor who is using financing is going to put you at a disadvantage, but it certainly doesn't take you out of the game. Focus on those properties where OO can't get financing (won't go FHA) and where typical investors aren't interested (more rehab required).