All Forum Posts by: Derek Montes

@Phil Z. Not true.

If an asset manager reaches out to agents for a BPO, why wouldn’t that be taken as an opportunity to create a relationship with an asset manager?

You better capitalize on that.

Sometimes AMs need a favor for a BPO and that’s why they are reaching out to you. Now, I’m not saying that you do countless BPOs.. you have to learn how to manage the opportunity. If still no assigned assets, then reach out once a quarter via email to the AM.

I have only sought out a buyer agent one time in couple thousand transactions. I forget how the BA got in contact with me, but they notified me of something my list agent at the time was doing and I agreed they should not have been doing. I completed the transaction with my list agent but never used them again. Now I assign all assets in that area to the former BA as they have proven themselves time and time again. Long story short, do not rely on AMs to get in contact with BAs it’s rare.

Also do sign up on the various platforms: Pyramid, Equator, Res.net.

Consider joining REO specific groups, but weigh out the costs and benefits. There are events like Fivestar- it can be ineffective but also opportunistic.

Good luck

@Chris Mcmahan

It’s very true that there are always some kind of surprise with REOs and their titles having some type of clouding, whether a lien, active code violation accumulating fines, or some other type of encumbrance that needs to be cleared. The banks sometimes take care this prior to closing but generally speaking they would prefer to pass this on to a buyer- anything that the bank can avoid spending on. Their goal is as much profit as possible.

Now with getting title searches done- find a title company that will give you a bulk pricing option so you can do title searches on multiple homes.

@Christopher Camerano

A lot of times what happens is that the former owner/borrower had listed the property for a very low amount- maybe enough to cover their remaining balance prior to getting foreclosed on.

Or maybe what happened is that the property went to auction for a specific price and the bank bought it then decided to either sell as is, or renovate it to average market condition and sell at a comparable value.

With an REO assume nothing and do all diligence (inspections) to determine and ensure condition is satisfactory enough for you and to pass any lender standards.

Usually there is title insurance in place to help with these matters. Find out from a title co if that's the case and they should be able to make you whole.

I fired and blacklisted a listing agent working a property for me that tried to buy the property we were selling even though their offer was over list price. That agent will never get another property from us again. If an agent tries to buy a property there is a huge conflict of interest- how can the client trust the broker/listing agent? Another issue is how can the bank/asset manager trust the listing agent in that they will present all offers? There are plenty of other issues that come to mind with this as well..

By making an offer the bank cannot refuse. What we can accept is different for each client bank. Negotiation is negotiation. A hint is for you to find a solid REO realtor with a good and ethical reputation with the banks/asset managers.

Asset Manager here. Message me with details.

I suggest you get to know your state rights as a tenant. Make sure you have a copy of the agreement between yourself and the landlord.

You could probably get away with not paying rent until the bank gets involved, lol, although I don't advise that. If you're approached with a CFK offer, the bank will request a valid copy of your lease. I would aim for $6k cash to vacate, but it's up to you for negotiating. 

Of course if you want legal advice get a lawyer, even though they are crooks themselves. As a tenant I am 99.9% sure you would never have to go to court.

I see these situations all the time, as I am anasset manager and sell REO props. My portfolio is over 300 homes across the US.

I am an REO asset manager and Eric is spot on.

This is something I've wondered. I was thinking to keep ~15% of value in reserves for maintenance, but this would obviously have to be built up.

What was cost of the multi unit? Age? Size? Cost of repairs? Rent per unit? Vacancy? Was the loan anumber FHA203K?