I am a newbie myself, however after reading REO guru Steve Cook’s material, to the best of my knowledge his advice on this question is be very persistant, make multiple offers, say another offer in one month. There is a chance the bank will do nothing with ANY of the offers(since it’s a bureaucracy);later while everyone is busy bidding on the new stuff, you go back with your second offer (then bug the *hit out of them over the phone or fax as a follow-up)since most of the competition has given up, you might just get it for less than you’re first offer!)
Hope this wasn’t too long-winded an answer. (Steve Cook’s stuff is really outstanding though.)
Posted by cfinnie on October 22, 2002 at 21:29:25:
I would love some feedback on this:
Foreclosed property listed MLS for 57K, tax value 102K, my offer and 3 others went in after it was in system for 1 day. Probably other offers on it now. Repairs needed are new roof, HVAC, lots of paint, carpet. Doesn’t seem to need anything structural. I figure about 30k to fix. Neighborhood values about 110 and up.
It looks like huge potential for profit. My agent says they will probably just collect offers and some may be above listing price.
What would you experienced investors do with this situation?
Love the site, this stuff is so exciting! Thanks for your feedback in advance.
I was in a similiar situation. An REO hit the market listed at $95k on Fri. afternoon. A total rehab but ARV was 230-250k. I looked at it on Saturday morning, brought another investor by who would fund the deal on Sun. but it was already UAG. Some times you have to just go with your gut, if its a hot deal everyone and their brother will be after it, just throw out an offer at or a little above the asking price and keep your fingers crossed.