REO PURCHASE
I am a new investor and recently submitted a bid on a Property (REO),
it is listed for $300 and needs alot of work. My contact suggested I a bid of $270. I wanted to bid 70% or 80 % of the asking price . The property needs alot of work I say $50+ he is saying 20,000,. The comps in the area are $ 365,000. My contact says that if I submit a bid for 70% or 80% of the asking price my chances are slim of getting it awarded. What is the rule of thumb for purchasing REO's I thought it was to bid 70% to 80% of listed price because of repairs and other costs involved in purchasing Real Estate.....My concern is that if the repairs are in fact 50+ I might loose out on this deal...any advise will be appreciated..