Posted by JPiper on March 20, 2001 at 01:26:26:
Assuming your numbers are right…why not get a hard money loan?
JPiper
REO Deal Help!! - Posted by Mary
Posted by Mary on March 19, 2001 at 11:07:27:
I have an opportunity of obtaining a great deal on an REO property in Texas. It was listed a few months ago for $105K as an REO, on Saturday, the broker told me they’ll take $75K and that it won’t last. He said based on the comps and his knowledge of that property, it will sell for $150K and that neighborhood sells quickly, I happen to live 10 minutes away from the place and know it well. The house needs carpet and paint and 1 piece of sheetrock in the garage wall. Here’s the problem, for him to submit an offer, I need a prequal letter or money in the bank. I’m in the process of obtaining $60K from a refinance on a property I own, but that’s all the money I’ll have, and it’s still having problems at the Title company.
Is there anybody who is interested in sharing it or how can I get this deal done? Let me know something whether it’s possible or just to let it go. Thanks for all your help, Mary
Re: REO Deal Help!! - Posted by Paul Macdonald
Posted by Paul Macdonald on March 20, 2001 at 09:04:16:
My first reaction is the broker is lying. Secondly he/she is breaking professional ethics by telling you what the seller will accept. Thirdly, if its truely worth double what the seller would take the realtor would snap it up. Fourthly, this broker might need a prequal letter (which is extremely easy by the way) but what you need is an honest realtor who will work with you. Find a buyer broker who will submit an offer so that you can lock up the purchase.
Now that all being said: If it truely is worth 150k at a purchase price of 75k with such minor cosmetics, run - don’t walk - to a good lender (Ed being one of the two best lenders out there ((I’m the other one, if I do say so myself)). Get a preq. based on your pending cash out. If you have any of the 60k cash out available for this purchase putting down far less than the whole amount will guarantee you quick, cheap (well, at least not hard money) 30 year fixed rates.
If its a real deal lock it in ASAP.
Have fun.