I know someone who has been turned down by a major bank because he is not the only one on his LLC.

The last REO deal I did was in 1996 so I'm not up on the latest trends and the positions of banks nowadays.

If the homeowner and buyer arrange a sales prices for less than what is owed and the bank agrees, what will be the consequences to their credit?

Sell to an actual end-buyer and take my assignment fee at time of closing.Side Note: If anyone has any comments about this strategy, please let me know, as I'm open for any/all suggestions.Now, here's my question...As a new, aspiring investor here in the Sacramento area, especially within the suburb where I live, and the surrounding neighborhood, there's been an influx of homes that have been foreclosed on, which the banks have bought back and have sent to their respective RE companies for resell.Would these REO's be worth my time going after, in order to hopefully wholesale and if so, what kind of reaction should I expect on submitting low-ball offers?

Long story short, the bank tried an online auction that failed.

I negotiate w/the Banks and have lots of experience.

However, I've read that banks don't usually go below 10 to 15% of Market Value (or is it listing price?)

This will just be one more nail in the coffin of banks and will increase the costs of lending.

Make sure you're calculating and using caps based on actual data and not proforma.Finally, a great book written by a former bank financial analyst that will help with the evaluation of MF projects is "The Complete Guide to Buying and Selling Apartment Buildings" by Steve Berges.

I read it over and it is all about Bank Debenture Puchase and Resale Program.