Bank owned properties on the MLS - Posted by Carson

Posted by GA Stef on August 25, 2005 at 13:22:14:

Thanks a bunch John, I have an investor friend that is providing me with capital, and wants me to go into HUD with him, (note in my name and all) fine and dandy… but it is taking a long time for him to find a property, so I’m taking it upon myself to look ALL OVER for them.
I used to visit this site years ago and then LIFE stepped in and I’m just now getting back in to REI. But still trying to get that 1st one.
Anyway thanks for the insight and the chat, I am just going to get going and tell him to give me his money!!! lol and I’ll do the deal ya know.
Hope to talk to you again.
(I see some of the same people and some of the same smart remarkers’ are still postin) LOVE IT this site actually makes learning fun.
Thanks again,
Stef

Bank owned properties on the MLS - Posted by Carson

Posted by Carson on August 24, 2005 at 10:47:03:

Anyone have any experiance with them as investments? Any info i hould know about? Do they work just as well as new forclosures?

Re: Bank owned properties on the MLS - Posted by John B. Corey Jr.

Posted by John B. Corey Jr. on August 25, 2005 at 01:00:33:

Carson,

What do you want to know? I or investors I work with have purchased and continue to purchase REOs.

Not every REO is a deal. Some markets are too hot for almost any REO to be a good deal. In other markets REOs are sold below real market value as the bank needs to get the property off their books.

The title has been cleaned up. The property may or may not need work. The lender will be slow to respond. The price could be higher then if you bought it prior to the auction though that is not always true given the possible junior liens.

John Corey
Chelsea Private Equity LLC

Re: Bank owned properties on the MLS - Posted by rm

Posted by rm on August 24, 2005 at 20:44:24:

I personally know investors in other parts of the country who use this method almost exclusively- and they’re making money.

In my area, I have several, automatic MLS searches using key words, and I have seen only a handful of deals that made any sense at all in a little over 2 years.

Bottom line- there’s only one way to find out… try it.

Re: Bank owned properties on the MLS - Posted by Sean

Posted by Sean on August 24, 2005 at 12:07:37:

They work better than any other type of foreclosure… why? Simple, they are LISTED FOR SALE!

Re: Bank owned properties on the MLS - Posted by GA Stef

Posted by GA Stef on August 25, 2005 at 12:59:00:

John, Since you mainly work with REO, I will assume you may have worked with HUD also. (?) Can you give an insight to pro’s and con’s better or worse than HUD???
Question… Which is the best “starter” for a newbie?

And yes… :slight_smile: I have read just about EVERY post and archive on REO, just still very timid to make the 1st offer.
Thanks a bunch,
Stef in GA

Re: Bank owned properties on the MLS - Posted by John B. Corey Jr.

Posted by John B. Corey Jr. on August 25, 2005 at 13:38:17:

Stef,

Sorry if I left you with the impression I do mostly REOs. More accurate would be to say I have done a number of REO deals along with other deals (from developers, from investors, from home owners who are moving on).

Funny enough and definitely without any obvious intent I have never worked with a HUD deal. At some level government deals can be more rule based so maybe I have just avoided learning how to deal with HUD. There seems to be plenty of deals out there without HUD. Some others really like HUD deals. Best that they answer your HUD questions.

Fear of making a mistake on your first deal is common. All new people feel that way. One secret is you will make one or more mistakes on your first deal. You just do not know which one it will be.

You could get a mentor. You can hire a consultant. Or you could just get up the courage to dive in.

One thing that helps is having enough cash to paper over the smaller mistakes. If you make a really big mistake then watch out and be prepared to cut your losses.

Continue to post questions. Send email if you like. You will get over the fear by talking with investors who are a little bit further along.

John Corey
Chelsea Private Equity LLC

Re: Bank owned properties on the MLS - Posted by John B. Corey Jr.

Posted by John B. Corey Jr. on August 25, 2005 at 13:10:38:

Stef,

Sorry if I left you with the impression I do mostly REOs. More accurate would be to say I have done a number of REO deals along with other deals (from developers, from investors, from home owners who are moving on).

Funny enough and definitely without any obvious intent I have never worked with a HUD deal. At some level government deals can be more rule based so maybe I have just avoided learning how to deal with HUD. There seems to be plenty of deals out there without HUD. Some others really like HUD deals. Best that they answer your HUD questions.

Fear of making a mistake on your first deal is common. All new people feel that way. One secret is you will make one or more mistakes on your first deal. You just do not know which one it will be.

You could get a mentor. You can hire a consultant. Or you could just get up the courage to dive in.

One thing that helps is having enough cash to paper over the smaller mistakes. If you make a really big mistake then watch out and be prepared to cut your losses.

Continue to post questions. Send email if you like. You will get over the fear by talking with investors who are a little bit further along.

John Corey
Chelsea Private Equity LLC