All Forum Posts by: Kristian Peter

From the experience of closing over 2,000 REOs, the List Price is typically not very negotiable over the first 30 days, usually only 3% - 5% below. After 90 DOM, then the List Price does not apply, and all offers are negotiated...

My best advice is to become very good friends with the local listing brokers in your area that sell REO, and have them negotiate on your behalf. The broker can usually ask the asset manager for concessions based on cash offers or quick closings...

Never submit low offers without at least speaking to the listing broker, unless you just want to upset the broker and seller. If you are looking for the best deals, check the DOM...

Totally Agree!

But, the fact of the matter is that most wholesalers only provide a property and a CMA (because it can be done for free). Rarely does anyone get a full appraisal and home inspection, as the two of them usually add up to about $700.

If you provide both, I would love to buy wholesale properties from you - do you only work in North Carolina?

I've never run across the owner of a short sale refusing to vacate a property, but when we offer cash-for-keys (CFK) after a property has gone REO, the usual offer is between $2k to $4k to vacate within 30 days or less.

I believe that you are right on track by offering first month's rent at another home. Hopefully they get out quick, and leave the place in good condition...

Jon's right on this one - almost ALL REOs go into the MLS for at least 72 hours before the bank will accept an offer - it makes sense... The only caveat would be if you are buying multiple homes and have a relationship with a bank.

Most subscription foreclosure websites will post the number of recorded liens -

foreclosureradar.com
realtytrac.com

A great way to do this is to pay for a Broker Price Opinion - for a normal exterior BPO, agents / brokers usually get paid about $50. That way you are not obligated to anyone, and you get a mini-appraisal for cheap...

There are plenty of BPO forms on the web that you can utilize - the biggest factor in a BPO is to make sure that the agent gets plenty of photos of the subject property and the comps. All of the driving around and research is worth $50.

KP

We work as REO brokers for the banks, and typically they do not accept offers with any contingencies - we are always instructed to counter out everything except for financing, which is typically 7 - 10 days for a full loan approval.

On another note, which most buyers are unaware of - most REO properties are sold with pre-determined Title and Escrow companies, and almost all sellers (banks) that we work with cannot cancel an escrow and open a new escrow if the deposit is in dispute - so the seller typically refunds the deposit in order to open a new escrow and sell the property.

So, is your deposit ever really at risk... No. And you don't have to worry about writing contingencies into your offer...

We work with most of the large banks and outsourcers once a property becomes REO, and take care of the retail marketing of the property. We also work with several groups that acquire properties at Trustee Sale. If the property has not sold yet at Trustee Sale, we can usually get an opening bid, and bid on the property on your behlaf. Otherwise, if the bid is too high, we can find out who the asset manager is in charge of the property, and which broker will be assigned the property - assuming that you are making a 'market value' offer, and are qualified, or have proof of funds to close, then the asset manager should accept your offer, as soon as the BPOs and / or Appraisal are complete.

i don't recommend going the Short Sale route, as there are just too many variables, and you waste a lot of time, 4 to 6 months, to find out if the lender will take your offer - you must also get the full support of the owner to fill out paperwork and submit bank statements, tax returns, etc. which they probably don't want to do for a property valued at over $2m.

Let us know if you would like us to research the Trustee Sale further - feel free to email anytime.

KP

Kyle,

It sounds like you're on a good path. We have a team at Keller Williams that focuses on investments and REO. We would be glad to speak to you in more detail about investments, and wealth building. Feel free to email anytime.

KP

JCC / Brian,

I appreciate your help - if anyone has any other sources, please email me.