Submitting an offer on a bank owned property
Hello everyone,
I found a great multi-family bank owned property in the Cincinnati area. I believe the property would make a great BRRRR I want to submit an offer on it but am kind of confused on which steps to take first and have some general questions.
1.) Asking price. The property seems to be listed overpriced. By a fairly significant amount. I pulled the best comps I could in the area and have determined that the Listing price is actually more in line with the ARV. I followed the Maximum Purchase price formula = Sale price - FIxed costs - profits - rehab cost and came up with a number 60k less than asking price which just seems like a very low likely hood of getting accepted... Is this common amongst Bank Owned properties?
2.) Offering the deal. From the research, I have done on REOs I've learned that banks prefer cash offers and will sometimes take a lower price on all-cash deals but I have also seen that some banks prefer first time buyers. Does anyone have any recommendations on whether to pursue an REO as a First-time buyer vs all cash?
3.) Funding the deal. I believe right now my best chance of getting this under contract is with an all-cash offer. Does that mean I need to contact a Hard money lender prior to submitting an offer or only once under contract? and If I do get it under contract all cash and 10 days to close what if I am unable to get the loan necessary am I out of my earnest money at this point?
4.) I have a partner that would be invested in the down payment required for a HML. Does anyone have a Hard money lender recommendation for a first-time Investor in cincinnati?