All Forum Posts by: Ron Todd

Hi BP,

I found a REO property that I can get a little under market value, but not the great price I was hoping for. I want to make this my primary home that I grow old in. My question is, should I treat this decision differently than I would an investment property? I won't have much equity intially. It would be unlikely to rent for a profit, but there is plenty of opportunity to update the house and add value that way. Again, I plan to live here forever so my initial thoughts are that it's not that big a deal to have little equity or ability to rent later. I'd love some feedback (to include don't let emotions drive your decision)!

I really appreciate all the replies! I know I have a different mindset as a small time investor where holding an asset that wasn't producing would make me want to sell. It's been enlightening to peek behind the curtain and see what the bank's thought process is.

Awesome Info all around. I believe its owned by Bank of Oklahoma (BOK). How does this scenario change if it's a big bank?

@Bob B. Thanks for the response. Would you mind giving an example of what you are looking for when setting your own terms?

I found the perfect home and was even more excited to see it had been REO for several years! I made an offer with my real estate agent and the bank countered by barely moving down. After a bit more research (small town Oklahoma, everyone knows everyone's business), the bank has refused multiple offers over the years near asking price. I'm curious if there are some common reasons why they would stick to their guns and hold onto a house for so long. Are there any strategies to use to help with negotiations? I've heard about offering to get the loan through the bank as an incentive for them to haggle but besides meeting them at asking price, that's about it.

@Lee VanDenBroeke you are spot on, it is (was) my primary residence.

@Jonathan W. yeah I was shocked when I ran the numbers. I bought this house a couple years ago before I got into bigger pockets and now that know how to estimate costs more accurately, I can see I under estimated them (classic rookie mistake) and that's how I ended up with only a potential $60 in CF. Looks like it's time to sell!!

@Account Closed Yeah I'm leaning more towards selling and putting that money towards another investment. I guess it mostly boils down to timeline to next investment. I was debating holding it to gain more equity but it probably makes more sense to just sell, take the cash and reinvest in something better. 

Happy Mother's Day BP!

We found the perfect house to make our new primary residence and now I'm left with figuring out what to do with our current house. Comparable rents will only net me $60 CF (after PITI/vacancy/maintenance). I could sell and net around 10k all said and done. I would love to hear what people did in a similar situation.

Hi BP,

My wife found a home on Zillow that is in pre-foreclosure. We are interested in making it our primary residence. Any tips on how to approach the subject with the owner or bank? I was thinking of writing a letter to the homeowner and trying to go a more personal route, but I would love to hear some suggestions.