Posted by Nate on December 22, 2000 at 09:28:27:
Fair enough. I was merely making the point that Fifth Third is a large institution. If they have a local presence with better access, then all the better.
Nate
Steve Cook, or whomever can help…Thanks - Posted by Anthony - OH
Posted by Anthony - OH on December 20, 2000 at 16:14:10:
Hi Steve,
I tried sending this to your email, but didn’t get a response. We have corresponded on occasion about real estate. I have found some houses in my neighborhood that have been sitting empty for months. I looked them up in the county database and most have gone back to the banks.
I am planning on calling the banks tomorrow to see how they take offers. I am somewhat confused on the docket info I am seeing. Example:
House foreclosed on by Fifth Third Bank (local bank), Purchaser was Fifth Third Investment Company??, they paid 57K for the property. House appraised for 66k. Retail for 75K-80K. Will the bank expect 57K or more?
My plan. Get the property under contract and flip to investor or rehabber. The problem is that I’ve heard banks want proof of funds and large deposits to tie up properties. How do I deal with this?
I know of hard money here in town, and I know of a few rehabbers and investors to sell to. Isn’t this the route you started?
So if I have to use hard money to purchase these homes, how likely is the bank willing to accept 65% of appraisal?
If I could get these homes for under 50K, turning them around should be VERY profitable. The neighborhood is a good mix of renter/owners. Homes sell very quickly.
There is a HOARD of empty homes around me, I got to do some deals!
Thanks for your help.
Anthony
Re: Steve Cook, or whomever can help…Thanks - Posted by John Ohio
Posted by John Ohio on December 21, 2000 at 23:08:16:
Anthony, I am in Columbus area and contacts with 5th 3rd. Let me know if you want my help.
Re: Steve Cook, or whomever can help…Thanks - Posted by SCook85
Posted by SCook85 on December 20, 2000 at 22:30:37:
Anthony,
Sorry for the slow response to your email, I haven’t been checking that account lately.
Anyway, since the bank you referred to was a local bank you may have some luck in negotiating directly with them. Most of the larger banks have to list all of their properties with a real estate agent. It is in their corporate charter and it is designed that way to create a competitive environment for the home. They don’t want their REO managers selling all of the banks homes for really cheap to family members. Not all local banks have such rules.
As for Proof of Funds, you may be able to get away with not having that with a smaller local bank. It’s the bigger banks who deal in foreclosures all the time who require Proof of Funds. Most banks will accept $1000 earnest money on their homes. I don’t know if you consider this large. I have only ever had one require more, but when it came down to it, they took $1000.
As far as what the bank will take, they will take what they can get. If they can get $70k, you better believe they are going to take $70k. If they can only get $30k, then that is what they are going to take. Forget about the $57k, it has no bearing on what the bank will accept, sure they would like to at least get that, but they will take less if the home isn’t worth $57k.
One thing that I would be careful about is what you mentioned about homes selling quickly in the area, and there being a HOARD of empty homes. A HOARD of empty homes is the sign of a slow moving area. If the area was so HOT, buyers would buy the empty homes.
I hope this helps.
Happy Investing!
Steve
You would think that wouldn’t you… - Posted by Anthony - OH
Posted by Anthony - OH on December 20, 2000 at 23:18:20:
I don’t know whats up, I have at least 20 empty homes within a 2 mile radius of my house. This past spring every other house had a for sale sign in front of it. They ALL sold within 2 weeks. Now the closer to winter it got the slower they seemed to move, but I still haven’t seen one listed for over 45 days.
Well there is one. It is empty, and needs a buncho work. The owner insists that he wont take anything less than 80K for it. It has been LISTED for a while now. 80K! Some people.
Oh and the REO I was talking about…The next door neighbors house sold for 100K! Same model, same everything! (I want buyers like that!) I bought the one I live in for 67K and it has ceramic-tile and was updated in the late 80’s.
Thanks for the info…I can swing the hard money and the deposit, now just to negotiate a sales price and write up some contracts.
Re: You would think that wouldn’t you… - Posted by Nate
Posted by Nate on December 20, 2000 at 23:26:53:
Steve,
Just an aside, I would hardly call Fifth Third a “local” bank. They are probably one of the five largest regional banks in the midwest. 
Merry Christmas,
Nate
Well… - Posted by Anthony-OH
Posted by Anthony-OH on December 20, 2000 at 23:56:22:
When I asked National City about thier REO’s I got a national number to call and a computer electronically mailed me a list that was so inaccurate and out of date I wan’t very impressed.
So when I called a LOCAL number and got a person on the phone from Fifth-Third’s REO department asking what property I was interested in I was suitably more enthusiastic.