Re: First R.E.O. Bid offer - Posted by Jim IL
Posted by Jim IL on January 06, 1999 at 18:28:04:
I just went thru that same hassle last month. I submitted my “offer” in writing with a 48 hour deadline, and also explained that I was looking at multiple properties like this one, and only buying one.
That did not “shake” them into any action at all. A week went by and I finally got a “Counter-offer”. The counter offer frankly was still a great deal, and I was ready to jump on it. The only thing I did not like was that they disclosed (oops!) They had received three other offers and the “counter-offer” was going to all of us. I confirmed thru my “Buyers agent” that my offer was identical to the other two offers, and this was why they took there time in answering all buyers.
The bottom line is, I was able to act fast, so I got the counter offer signed that day, and I’m closing next week.
I also learned from my “buyers agent” (I’m pretty new at this) that most of the REO’s she deals with take a few days to a week to answer offers because the “management” needs to look over everything.
One other point, this bank had accepted previous offers on this home, and lost the deals because the buyers financing fell thru. They demanded “proof of funding”, and since this is a flip, I had none. So, I acted like I was “king of REI” and said “Nope, you cannot have it, and that my finances were my business not theirs.” I also told my agent that if they balked at my answer, then so be it. Let the deal go away, and I’d simply move on to the next.
I also drafted a short letter that said I was an investor who utilized many different funding methods, and that I was going to “shop around” before I committed to one lender or other. I told the “seller” that this was not meant to be rude, simply me making the best business decision for me.
They signed my response, and the home will be flipped next week to another investor, netting me $16k.
So, act like what they have isn’t that big of a deal, and that you would walk away from it, if they won’t play by your rules.
Because, truthfully, you should walk away if they won’t play. There ARE other deals out there.
Hope this L-O-N-G winded response is helpful.
you are not alone, this board is here for us all, and GREATLY appreciated,
now I’m off to find money to goto the convention. I’ve already got my cash from this “flip” next week committed to another project. Perhaps I can find another deal to pay my way to Dallas…I hope so.