need tips on negotiating a deal with a bank
I'd like your thoughts on a deal I'm pursuing.
I purchased a 7000 sqr ft property at a tax lien sale. The owners walked away and the bank which owned the mortgage now wants to redeem it from me (3-year right of redemption in Louisiana) then sell it thru an agent. Property is a former B&B in New Orleans (no flooding but it needs some cosmetic repairs). I'm inspecting it this weekend to estimate total scope of repairs. Very crude guess is maybe $30-$50K.
Bank owes me and the city $58K for back taxes. I'd like to buy it from the bank at 50% of BPO (net to the bank) then wholesale it. I expect BPO to come in at $350 - $400K.
The BPO inspection is this Monday. I will be there along with the BPO agent and my contact at the bank's REO desk. I asked to join because I read here at BP that I should be there for the BPO walk through. I've not done this before and could use any advice you can give.
My questions:
1) why should I be present for the BPO inspection? Should I try to influence them? I do know that the agent doing the inspection lists other properties by that bank.
2) I'd like to walk away from this meeting with a good idea if the bank is willing to steeply discount this property. Any tips on what questions to ask or on an approach I should take to advance my agenda?
3) I believe that after the BPO is delivered, the agent will officially list the property on the MLS. Will this decrease my changes of negotiating a deal? Any suggestions on how I might stop or slow that down?
Any other thoughts?
Thanks,
randy