Can you wholesale REO’s

Question

Chun Kin A. · Answer

I think a large audience in San Diego, including myself, will want to buy from you if you can find deals at 70% ARV. If the seller is a bank, who is quite knowledgeable about market price, then I thought the bank would rehab themselves and sell at ARV. If you don't mind, can you share for what type of properties a bank would be willing to sell at 50% ARV? A fire damaged property that needs total rebuild?

Cody L. · Answer

If you're really finding properties for 50% (even 70%) of value, let me know.  I'll buy as many as you find and you'll be a millionaire in a month.

Dan Barli · Answer

Hi @Ethan Smith I think that generally with REO companies, they will want you to use their addendums and close first. I have seen a few deed restrictions that you cannot sell for 90 days or so, but I have not personally had any wholesale of REO properties. Are you working with a realtor in San Diego? Maybe they can shed some light on that for you.

Aaron K. · Answer

I am 95% sure you aren't finding properties that are 50% of what they are worth in San Diego, if you are I would like you to be my new best friend.

My guess is that you are seeing auction properties that have a low starting bid to draw people in, and that the properties aren't actually selling for that.  I would be happy to speak further if you believe I am mistaken in my assessment of the situation.