All Forum Posts by: Phil Z.

Post Cards are by far the cheapest, easiest to send, and most likely to read.

Off Market deals are making a come-back.

For a while the banks were in DUMP IT mode .. that has changed and they are trying to boost values by getting appraised value.

I also figured out that during the DUMP IT period, good deals looked great when you bought them, but 6 months later they were just ok deals because the market was declining.

The reason why everyone goes after MLS deals is because they are free and easy to find. Guess what that equals.. $$$$$

In some cases the listing agent may be in some trouble for a delayed inspection due to not having the utilities on already.

I assume you meant that you market to 'PRE-foreclosures'.   A foreclosure is a bank owned home.

Obviously the properties in question are already bank owned, which brings into question the accuracy of your pre-foreclosure list.

Banks want 95-100%.   Which has no relation to what it may actually be worth.

You have to wait for it to be listed. Either the MLS or an auction.

However, if you get into note buying .. there may be a market to purchase notes and foreclose site-unseen.  There are definitely big risks, but some Hedge Funds are doing it along with buying occupied auctions, and are mostly concerned with an over-all 'package' return on investment.

If you know your numbers, then there probably is no benefit.  However, investors and agents tell me all the time that they lost out on a deal because they didn't use the listing agent (in their head).  I ask what happened and it's always a similar story.

- The seller asked for highest and best.  (Lets say the list price was $100k)

- The buyer offered $95k, Highest and Best.

- The property ended up selling for $96k.

I ask the buyer/agent if they would have paid $97k .. and they either say:

-  'No', and I say "well then you weren't the highest bidder now were you?"  .. and the conversation is over.

.. or ..

- 'Yes' .. at which point I point out the fact that they did not submit their HIGHEST AND BEST .. and that's why they lost out.  What happens is, a buyer will make their offer just trying to guess what other buyers might offer .. and they lose.  It's almost as if a buyer is suddenly willing to pay more at the direction of the listing agent.  The buyer is always trying to get away with a better deal, but the fact is, if there's multiple offers you need to come in with your 'walk-away' price.

I sell a lot of REOs, and a lot of accepted offers have inspections.  Now if the house is 1/2 burned down, and you want the offer contingent on a satisfactory home inspection .. that might look fishy.

You can't just take it upon yourself to turn on utilities.

- First you ask the seller to turn on utilities.

- They will either say, A) You must turn on utilities, or B) Utilities must stay off

Most REOs (with exception of HUD), are supposed to have utilities on already. If they are not on, then there may be a good reason why they can not be.

In the case of HUD, an owner occupant has an inspection period where they can activate utilities AFTER getting approval from Field Services. Investors can also have an inspection but their deposit is non-refundable. You may also be responsible to re-winterize the house.

If you see signs of freeze damage and the boiler looks like a rust bucket .. then there probably is no need to turn on the water.

Just set-up an MLS notification and wait for the listing.