Posted by Redline on January 25, 1999 at 13:19:19:
Just a few thoughts:
Banks usually don’t like “flip” deals. Sometimes they won’t let you assign a contract or give you much in the way of flexibility on the contract. (This includes the fact that some banks even require a decent about of earnest money and deposits before the close).
Banks sometimes have the properties rehabbed themselves after they take them back especially if the properties are in nicer areas. After they rehab, whatever deal was there is usually long gone.
I have somewhat limited experience with banks, but generally I don’t find them very motivated. Sometimes you have to remind them that these REOs are liabilities and not assets because they seem to forget. I’ve seen banks sit on vacant property for years and not budge off an asking price. I don’t know.
Now, all this being said does not mean there’s not good REO deals to be found. Just do your homework and keep these things in mind. I’m sure others here have more REO experience and can give you some other good advice.