REO property help! - Posted by John STL

Posted by Redline on February 27, 2001 at 15:56:51:

First, if an offer was REFUSED you should be able to find out what that offer was. Atleast that’s how it works here - I would press on this.

Second, you’re going about this offer process the wrong way. You need to buy low enough to make a profit by fix and flip, rent, etc … low enough to cover you when something unexpexted happens in the deal. To do this you need to figure out the FMV, minus the repairs, profit and holding costs (for starters) …

You also need an exit strategy - unless I missed it I didn’t see what you planned for the property.

Don’t be embarrased or ashamed to make a low offer. This is business and you’re playing for real. The broker and the bank are not your friends.


REO property help! - Posted by John STL

Posted by John STL on February 27, 2001 at 15:48:38:

I was wondering if someone could give me some advice on making an offer to a bank for a property. The bank has the property listed at $69900. It includes 3 houses on in. #1 is a 3br 1bth #2 is a 2br 1bth and #3 1br 1bth. They are all in need of repair.#1 and #2 are currently rented for $600 and $490 and #3 rented for $310 but needs serious repair. The agent said they were appraised at $150,00 together about 3 years ago. I realize this doesn’t really mean anything but if they were all repaired I’m sure they woul appraise at at least $130,000. My question is how low is ridiculous. The agent said an offer was made and turned down before but the bank said they probably would take that now. He can’ tell me what that offer was. Is their a standard that anyone goes by when offering.
Any advice would greatly appreciated