Posted by IB (NJ) on May 22, 2007 at 23:16:44:
I’m in Essex county as well. Be careful, plenty of ‘deal-stealing’ investors in these parts. I’ll hit you up with an email.
Ib
REO’S & the gatekeeper - Posted by reigirl
Posted by reigirl on May 21, 2007 at 24:37:10:
I recently found out about some REO properties a realtor sent me the list. I went to go see them properties many of them need a lot of work. The realtor will not submit my offer to the bank, unless i show proof of funds. I just want to assign the contract or do a double close? How can I get around this, since I dont have buyers who I feel confident that they will not still the deal.
Re: REO’S & the gatekeeper - Posted by Chad (MD)
Posted by Chad (MD) on May 21, 2007 at 09:16:56:
If you can find a few buyers you can trust, you won’t have to worry about proof of funds or assigning contracts. Since you’re interested in REOs that need work, you should look for full-time professional rehabbers.
And you don’t need an agent to provide you with listings. Even if you choose choose to use an agent, you can still talk to the listing agents directly. Just let them know you are working with an agent.
I usually look at the property then make a very low offer over the phone. That way I fish out the motivated sellers. Most agents say “no way,” or “you’re wasting your time.” If they express any interest at all I contact my buyers. I tell them the numbers, and if they’re interested they make an offer.
Usually the seller will counter, so the offer should be lower than the rehabber is willing to pay. Also, there must be room to include a bird dog fee for me ($5,000).
Re: REO’S & the gatekeeper - Posted by GS
Posted by GS on May 21, 2007 at 07:11:37:
Most will ask for $1000.00 earnest money as well.
I buy REO’s all the time.
CASH is KING.
Re: REO’S & the gatekeeper - Posted by lukeNC
Posted by lukeNC on May 21, 2007 at 06:40:56:
proof of funds or pre-approval letter from a mortgage company is an absolute necessity in order to make offers on REO’s.
Re: REO’S & the gatekeeper - Posted by Frank Chin
Posted by Frank Chin on May 21, 2007 at 05:40:23:
ReiGirl:
I done REO’s a while back here before the hot market here. A banker told me that they they just wanted to unload them quick once a decision is made, and they don’t want to be stuck with someone tying up the place, look for a buyer, and then find the deal falling thru. Banks want buyers with cash that can close right away, and assigning a contract, and a doing double close does not sound like an immediate closing.
Tne ones I dealt with wanted to close ASAP, even 10 days, and having done assignments, I doubt I can assign a contract to a buyer, wait for them to go get a mortgage, schedule a double close, all in 10 days.
Frank Chin
Re: REO’S & the gatekeeper - Posted by reigirl
Posted by reigirl on May 21, 2007 at 12:25:42:
Thanks everyone for responding, just spoke to the agent and found out that the properties are not REO’s, the real estate office negotiated a short sale on these properties. How is that so, I’ve never heard of a real estate office doing a short sale without the owner being involved. Now I have to approach this differently, but I still cannot put them under contract because of the proof of funds. Should I tell my buyers, how can I protect myself without a contract.
reigirl
Re: REO’S & the gatekeeper - Posted by IB (NJ)
Posted by IB (NJ) on May 21, 2007 at 12:54:09:
REO’s, ‘real estate office’ negotiated short sales, they’re all the same. When you’re dealing with ‘corporate’ type sellers (or those who control the real estate), there will be requirements such as these. The best way around the proof of funds is to either a) hook up with a rehabber/buyer you can trust and submit her proof of funds or b) deal directly with homeowners. They usually don’t require proof of funds.
Ib
Re: REO’S & the gatekeeper - Posted by reigirl
Posted by reigirl on May 21, 2007 at 14:11:40:
Thanks IB-NJ, you’re right when I negotiate short sales with homeowners no need for POF letter, but since its the realtor that’s his request. Also I wish I could deal with the owner, but the owner is gone these properties have been damage and they have squatters/vagabonds living there I’ve already inspected them.
By the way I’m in NJ also I invest in Essex county.
REIgirl