Posted by Ronald * Starr(in No CA) on September 07, 2003 at 18:46:05:
RM-------------
Sounds like a sound strategy to me.
Good InvestingRon Starr**********
Buying Foreclosures. - Posted by Tony E. Moore
Posted by Tony E. Moore on September 04, 2003 at 20:26:29:
Hello Everyone,
>My name is Tony E. Moore, and I want to get you guys opinon on purchasing
>a home that has already gone to foreclosure and now is retained by the bank.
>I have tried to deal with a buyers agent, the listing agent and have even
>sent a letter to the bank itself. I have not gotten any responses that
>would justify that they are really trying to get rid of this property. My
>letter may not have contained the right information for trying to obtain
>this property. The property is listed at $130,000 but it needs about $50,000 worth of work. The ARV will be between $150-$170,000. After purchasing and fixup, I would like to see some equity quickly. I would like some positive feedback on what to do next or on
>the next property that a bank or mortgage company may own.
>
>Thanks for you time,
>I know its important.
>
>Tony E. Moore Sr.
>Triand Properties
Re: Buying Foreclosures. - Posted by Jasonrei
Posted by Jasonrei on September 05, 2003 at 19:18:52:
Tony, I buy foreclosured houses from lenders. Chances are your letter was thrown in the trash. I’ve bought about 20 foreclosures in the last year from I’d say 12-15 different lenders. I’ve gotten immediate response on a few, but usually it takes days. I’ve seen lenders sell a house at 25% of as-is value from the start, and I’ve seen them keep a house on the market for 2 yrs or more at a ridiculous price.
Truth is there are countless foreclosures out there. Don’t zero in on a property just because it’s a foreclosure. I think people mistakenly believe that lenders are more motivated to sell their REOs than the average home seller. I don’t think that’s necessarily true. I’ve heard things like “Banks aren’t in the business of owning real estate, they make loans!” and “It costs the bank big money to keep REOs on their books, keeps them from making more loans”. Mostly that’s hype. REOs are nothing new and most lenders have a system in place for selling them. On the whole I’d say banks do a very good job of getting top dollar for their REOs. In fact, when I look at the prices I get for my rehabbed houses, and then see what banks get for their JUNK I’m stunned! People pay ungodly prices for bank houses. I think I’M more motivated to sell MY houses than an REO dept is to sell THEIRS.
Anyway, I guess you really just wanted some positive feedback, so here it is:
don’t send letters to the lender, call. call until you get the REO dept, or asset manager. tell them you are interested in a certain house. they’ll probably tell you to wait til a sign is up or something, or they’ll give you the agent to contact.
why isn’t your agent giving you an update? get an agent that will keep you informed. send another offer in.
if you really want this house (even though I don’t see anything special here) be persistent.
send a big earnest money cashiers check with your offer if you can. that will grab their attention. if you have all cash, send them a letter from your banker stating you have $XXXXXX in your account.
if you’re sure it’s a good deal, don’t put contingencies in your offer. offer a quick close. if a lender believes you have the ability and desire to close like yesterday they will at least listen to a borderline reasonable offer. YOU have to convince them you are serious. otherwise they see you as a waste of time like the 20 other investors whose offers were nothing more than a waste of paper and ink.
Re: Buying Foreclosures. - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 04, 2003 at 22:20:00:
Tony E. Moore Sr.-----------------------
Since the bank has a listing agent, submit an offer at a price that seems reasonable to you.
If it is not accepted, wait about three weeks or a month and see if the property is still for sale. If so, submit another offer. At or below the first offer.
Repeat above until property is sold to you or to somebody else.
There is no law that says that lenders have to sell properties at prices that investors will like.
Good Investing*Ron Starr
Re: Buying Foreclosures. - Posted by rm
Posted by rm on September 07, 2003 at 16:24:31:
>
In my market, I’m tempted to sell “as is,” as opposed to fixing up. It appears to me that you get diminishing returns for fixing up a property. SO many people out there looking for “deals” who don’t know a deal from a hole in the ground.
In fact, I may start tracking “fixers” that sold for too much, and pick them up when the “investors” realize they’re in over their heads.