Bank owned fixer - Posted by Tom

Posted by Hugh James on April 25, 1999 at 13:46:04:

Just guessing, but I think he means they foreclosed on a $47K first.

Bank owned fixer - Posted by Tom

Posted by Tom on April 24, 1999 at 23:22:14:

A bank owned fixer in my town has been for sale for almost a year. Asking price 62k. Market value if fixed up about 70k. Would need about 15k to fix up. Mortgage on house is 47k. The bank is not local that owns it. My thought is to take pictures, (the house looks terrible, broken windows, holes in walls etc.), include fix up estimates and then lowball them with a purchase price of 40k. How can I get the listing agent to submit my derogatory “packet” with my offer? Any suggestions? Also, any suggestions on what you would do with this property? It’s a 3bd. 2ba rancher with unfinished basement in a so-so neighborhood.
Thanks for your imput. Have a great day!!!

Re: Bank owned fixer - Posted by Tom K.

Posted by Tom K. on April 28, 1999 at 13:10:36:

I recently purchased a bank owned property. They had it listed for $70K and then reduced it to $55K. It needed about $10K in repairs. I offered them $25K and handed them some estimates for the repairs. The estimates where for about $15K. I got the property for $28K and I will be able to fix it up for about $7K. Market value is $75K. By the way, this is my first deal! I think I’m going to like this investing game.

Re: Bank owned fixer - Posted by Ray S(FL)

Posted by Ray S(FL) on April 26, 1999 at 21:08:03:

Tom, If I ran accross this in my area I would start w/ a offering price of $29,000. That would leave you a 20% profit marging (Retail)and $5,000 cushion if you decided to flip it(wholesale). Sometimes banks hold properties for a long while playing the greater fool theory, but if you present your offer you should get some kind of response. If you don’t get a response then make the same offer in 30 days and every 30 days there after until it is sold.

My .02
Ray S

Re: Bank owned fixer - Posted by kathleen

Posted by kathleen on April 25, 1999 at 19:29:16:

You can be sure that the listing agent is more anxious to sell it than you are to buy it. Anything you can provide to help the bank be more realistic wil probably be welcome.
You don’t need to concern yourself with the amount of the mortgage. Make sure there is enough profit for you - don’t make the bank’s problem yours!

Re: Bank owned fixer - Posted by tarun_md

Posted by tarun_md on April 25, 1999 at 02:35:53:

If it is a bank owned property, why is there a mtg of 47k on it. That doesn’t make sense. REO properties are 100% owned by banks.