Tying up REO's (Newbie Question) - Posted by Mark (MI)


#1

Posted by Jimbob on December 02, 1998 at 16:58:19:

Mark,

This sounds like a fairly skinny deal, but you have to start somewhere. What I would do is write an offer of full price to the bank, offer no money down and they carry the note at 8% interest with a 5 year balloon, and the seller agrees to pay the brokers commission. You mentioned the broker said the bank wanted cash for the house but I’ve bought a couple this way, the bank may not want to put any money or work into it, and depending on their motivation, they may go ahead and finance it.

If this doenst work, try to find a partner to purchase the house with, fix it up and sell it.

Jimbob


#2

Tying up REO’s (Newbie Question) - Posted by Mark (MI)

Posted by Mark (MI) on December 02, 1998 at 15:09:42:

Before I ask my question, I would like to thank all of you pro’s for being so understanding with us Newbies and helping us out. I have been reading this site for about three months now and have learned a ton. The time has come for me to get going and make some cash! Thanks Guys!!

I have found an REO property that is listed with a local broker. The bank is asking 38K and the property comps for low to mid 50’s. The broker says that he’s hired some contractors to determine what problems the house might have, but does not have the full report back. He says that some minor roof work, furnace work and some minor plumbing work is needed as far as he knows right now. My questions are this: I went to a local mortgage broker and determined that I would need 10% down plus closing costs to purchase this house. My current financial situation can’t comply with that right now. Is there a way that I can tie this up with the current owner (Bank) and flip it to another investor. The broker says that the bank wants a cash deal. Even if the repairs cost me 10K I would still be looking at a 10K profit. I hate to pass that up because I don’t have enough cash handy for the dwn. pymt. and closing costs. Does anyone have any ideas? Maybe some creative financing alternatives. Thanks.