Posted by Philip on September 09, 2003 at 11:05:36:
So just outright ask them what percentage they would pay if I find them a buyer?
Or is there some other arrangement?
One officer at the bank mentioned 8 or 9k and that is between wholesale and retail. The home is nice, but only worth 5k to me.
Thanks,
Philip
Need advice on bank repo - Posted by Philip
Posted by Philip on September 09, 2003 at 04:59:53:
I am looking at my first local bank repo tommorrow or Thursday. This is my own bank that knows what I am doing and how I do it. I will make a lower offer than they will accept.
Any advice on keeping myself in on future bids even though this one will be really low?
This bank is pretty stubborn on selling repo’s, but they also have been sitting on this for at least 7 months. They want me to make money, but they will want 50 cents on the dollar, which I won’t pay.
Philip
Re: Need advice on bank repo - Posted by Lyal
Posted by Lyal on September 09, 2003 at 07:28:54:
Phil,
Stick with the program here…don’t make an offer. Let them know up front that you are looking for a “wholesale” price and make them come up with a number. If they won’t, tell them to call you when they figure out what they need “to see if you’re even in the ballpark, 'cause you don’t want to waste their time”. When they come up with a number, you have some options. You can ask them if they’ll finance it for you (good terms of course). If they want cash, you can tell them that “isn’t really a wholesale price”, is that the BEST they can do??"
Point is, you can negotiate here too. Doesn’t need to be confrontational, “just talkin”).
Don’t just throw out numbers as you may pi$$ them off or, worse yet, pay too much.
All the best, Lyal
PS: Been down this road before with a banker who thought 500 bucks was a “healthy profit” on one of these deals.
Re: Need to try and … - Posted by Greg Meade
Posted by Greg Meade on September 09, 2003 at 06:25:37:
see if the Bank will joint venture this thing with you. i have a local lender that calls occasionally with nice repo homes for sale, they also don’t discount much. had a 28X66 1995 fleetwood for 13,500 (wanted 19,700) they let me sign for. The deal was i had 30 days to sell b4 i had to cover funds. Advertised and sold in 2 weeks for 15,770. netted just under 2000 after expenses. folks who bought put on land and the Bank did the financing for them at 7.5%. This was a win-win. I would never do something like this on a first deal…if it hadn’t worked out, i’d of been on the hook for 13.5k and approx 4k to tear down and lot set. something that all businesses understand is pv (present value). holding bad paper for 7 months on a non-performing asset is tough on a bank, you should be able to get a deal!! This first one, you might try working a commish type arrangement if you can’t swing the cost for the unit cash! Please post and tell how this works out!
Re: Need advice on bank repo - Posted by Philip
Posted by Philip on September 09, 2003 at 11:02:32:
That is just the kind of input I needed. They will know about “whoever talks first loses”, but they will just have to be first, because I am getting really busy with mobiles and work and i don’t care if I buy this one or not. Strangely enough, It is in the park I almost bought and the park owner reminded the bank of me.
Thanks, Philip