Presenting Offers on REOs - Property Listing Agent vs. Buyer's Agent

You might want to start out by building a buyers list and looking for great deals that your buyers want. You can then do assignments or double closes. Once you build up some cash, a power team and a network it may then open up some doors for you to do buy, fix and flips or buy and holdrentals. Good luck. Believe and Achieve! - Joe

As others have stated a proof of funds can be obtained through transactional lenders such as www.coastal-funding.com You want to compare all terms, rates and fees for any hard money or transactional funding you may use if doing a double close. Good luck. Believe and Achieve! - Joe

Thanks for sharing some good advice and insight. Wishing you good luck on all your future real estate deals. Believe and Achieve! - Joe

Thanks for the nice comments. I know all the great DG members that share thier insight is so much apprecitaed by others that are just starting or gainign experience. Good luck to you with real estate investing. Believe and Achieve! - Joe

I do believe in karma and what goes around will come around. If these agents are playing games it will eventually catch up with them. Just keep on making offers and try not to give them enough time to shop your offer. I always make an offer and only give 24 hours for the seller to decide, even if a bank. Good luck on your futre real estate deals. Believe and Achieve! - Joe

Thanks for sharing the insight and what you have been seeing in your area. Hope to see you at the EDGE next year. Unfortunately, I was in and out of Arizona because I was teaching at several other of Dean's Insider Edge events. Hope to see you at next year's Edge event. Good luck on all your future deals. Believe and Achieve! - Joe

Its going to be really hard for you to finance a property without a JOB. Unless you have other source of income. I am a single mother of 4 and I have some experience in real estate. Maybe I can help. Have you think what is it that you want to do??

When looking at REOs do whatever works best for you in your area. It could be using a vaiety of agents to look at several proeprties or just your agent. If you want to call the listing agent go ahead, if not you can use your own agent. There is no absolute right answer. At times you try several approaches and see what works out the best. Hope this helps. Good luck. Believe and Achieve! - Joe

You always contact your buyers as soon as you get the property under contract. You inspection period is usually the time you need to find a buyer or gracefully exit out of the deal. So be sure to have a good contingency to get out of the contract if you can't locate a buyer in the timeframe you negotiated for your contingencies. Hope this helps. Good luck. Believe and Achieve! - Joe

You can get a proof of funds letter from a transactional lender such as www.coastal-funding.com The proof of funds will accompany your offer. If your offer gets accepted make sure you have an exit startegy in place such as if you plan on doing an assignment of contract or a double close. Almost all bank owned REOs you will have to do a double close. Good luck. Believe and Achieve! - Joe

I get a lot of students that tell me they can't get contractors to do free estimates on properties. Here is proof from the last couple of postings that there are contractors willing to what you need them to do. They want to keep their crews busy all the time so the only way they can is to make bids and estimate projects for people.

Now when you do get a property you need rehabbed you need to throw them the job so they will keep working with you.

anything is possible if you are willing to go for it

Mikessler
Keep Moving Forward!!!

Lowes and Home Depot have sub-contractors that will come out to do estimates. If they do not do estimate I would re-contact Lowes or Home Depot. You will get action Believe and Achieve! - Joe

We can put our heads together and figure something out.. I have a little cash to invest and I'm good at finding buyers... Maybe you can find sellers and we make money in cali... Let me know..

What area of the country are you finding deals in? How much under FMV are you locking up deals for? Can you provide an example of a rfecent deal you have completed or have locked up undr contract. Thanks. Believe and Achieve! - Joe

Thanks for all the helpful info Joe.Im out in Vegas doing assignments from Fsbo's. Could you share how to do double closes so I can expand to REOs and short sales. I have tons do buyers and need more sellers ASAP. Thanks

Tiffany

Hi everyone,

I really hope these questions haven't been asked before but I have been reading and searching topics all day so it is possible it was overlooked. Also, some people did ask similar questions but nobody answered them, so I had to re-ask.
I tend to over-think everything and I keep coming up with more and and more questions which only confuses me more. I think the more I read the more confused I am getting. For the record, my husband and I are looking to do assignments with no money down.

1.) If a property is listed with a real estate agent are they legally bound to show my offer to the owner, whether it be the bank or not,even if they don't like it? I don't understand why an owner that is not the bank would accept these low-ball offers, especially since I expect the agents don't want the low offer to be accepted since they will make a much lower commission. Won't they try to convince the owner not to accept the offer? With the bank I guess they have no say. A personal friend who is a real estate agent said these low offers are considered rude and agents won't want to work for us because of this. (She wouldn't work with us.)

2.) Are all foreclosed homes REOs? What is the difference? I see foreclosed homes that are not listed for sale or under an agent when I look them up. Do I go right to the bank for these? If so, how do I know which bank? What to do?

3.) How can I find expired listing? Does that have to be through the MLS? I only see older listings, not expired.

4.)Could someone provide a step-by-step guide to making an offer to both FSBOS and REOs/foreclosures? With and without a real estate agent working for you? My husband and I live in a very small town and so far have had no luck with anyone willing to work with us. Most never even send listings after they say they will, nevermind anything else, so we have to be prepared.

5.) Are you upfront with your agent about you doing assignments, or do you tell them later on? Same thing with the sellers or their real estate agent. Do you tell them right away or is it more don't ask-don't tell? Do they even need to know? I don't want to mislead people, but at the same time, I don't want people to be discouraged to accept offers based on this.

As you can see, I am getting really caught up an confused with the fine details. The general guides people have provided as excellent but they just give rise to more questions.

Please, please, could somebody help me out? I would appreciate it so much. One again, I apologize if these have been asked before. I really have searched for 2 days to find the answers. Thanks very much, everyone!

-Stephanie

Hey how are you ? Question: Have you ever wholesaled / assigned any property using a Real Estate Agent ?

If Yes, can you and I have a phone convo, so you can explain this process to me so I can reiterate it to my Agent ?

Hi, I have read some tips on this before,and one I recall is to look in your public free newspaper with the work wanted ads, then have an inspector from there with experience go see the home and give you a written estimate. Tell him that you would like him to inspect the home for free, if he is willing to give you a written statement, you may be using him in the very near future or recommending him to other investors. Most often, he will be willing to take that chance with you. Another place to find good inspectors or contractors is in the home building supplies stores. Good luck

I have found that putting down at a minimum of $1K or 1% of the purchase price, whichever is higher along with a solid POF and let the broker know that the Offer and acceptance deadline is firm is the best way to get a counter offer within 48 hours. However I do agree that offering the listing agent dual agency can motivate them as well. Typically the listing agent will not be allowed more than 4% total on an REO, so I will usually ask for the Seller to pay that 2% towards my closing costs to cover transactional funding.

I know this post is old, but I am trying to buy REO's in my area and am being told the buyer has to hold the deed for 90-180 days. I don't have the funds to make the purchase and can't assign contract or double close. They are a lot of great deals around right now but how can I take advantage of them? I have completed Dean's PMI training and am trying to close my 1st deal. I need cash fast.
Thanks,
Jeff Middleditch
propertyhelp5@****

I am in the same boat

One way I found useful in finding the owner or who the property is titled to at the moment, would be with a title company. Try and find someone who will do you the favor of bringing up the information for you, with you only having to give the address, and a Starbucks gift card as a thank you. It's worked for me

I am new to investing in real estate, although it is something I have been trying to get my feet wet with for quite some time. I'll admit, fear has become a big factor. Making an offer on an REO had been my biggest dilemma. If it isn't too much to ask; Would you or someone please explain the step by step approach to making an offer? what do you need to submit an offer; does any money need to be put out from me, the investor; what happens once the offer has been approved and moves into escrow? So far, the way I understand it to be is 1) Submit the offer, but a pre-approved letter from a lender is needed- Does this mean I need to use a transitional lender or hard money lender right away and have the buyer already, without even knowing if my offer will be accepted?
2) If offer is accepted, a down-payment check would go to escrow company
3) Escrow could be 30-45 days before closing, and all loans are funded then

Would you please guide me, if this is correct or not and re-explain?

Question:

When you submit an offer to the listing agent, you don't tell them that you plan to buy the homes in contract to resell. How do you get the homes in contract to let them know of your intention using the no money and credit option?

I hope you can give me some clarification on this matter.
I am so anxious to start getting on my feet and start.

Thank you for your time.

Sincerely,
Shirley

Need a little advice. I've found a potential deal bank owned about to go into foreclosure asking $50,000. Needs work to the property - around $12,00. FMV is $65,000 and same size house next door sold for $125,000 after repairs. I was thinking of offering $37,500 considering repairs. Here's the tricky part and any advice on how to proceed would be greatly appreciated. The agent is asking for proof of funds before constructing the offer. I know there are 'free proof of funds letters' out there but want to know if these get results? Also considering using hard money or traditional lending. If anyone has some insight to taking the next step to move forward I'm all ears!

Thank you,

I am looking at a home that is a bit over 1246 square feet. The ARV is about $108,900. but it is one that needs all the interior stuff, from carpeting, to countertops, cabinets, sinks, lighting, and appliances. All interior wall work like plumbing and electrical has been done. The owner is asking $87,500 and it has been on the market for over 300 days. I see this as a great wholesale, or rehab, but being a newbie, I am not sure how to go about it without the owner loosing out too much also. Oh, it is also a Homepath loan home. Any suggestions?

Intimately, the post is really the greatest on that worthwhile topic. I fit in along with your conclusions and surely will eagerly look forward to your subsequent updates. Just saying thanks cannot just be adequate, for the amazing clarity in your writing.

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Unless the property was presented to me through agent I will always go with the listing agent. Even if you run into a boyscout that states that because it is an REO or short sale they can't represent you, they will always get a "buddy" in their office to represent you and that "buddy" will put all the pressure on the listing agent you need. Also it helps to submit a solid POF and copy of earnest money receipt with the offer as well.

I am on a roll getting offers accepted on REO's and Short Sales taking this route, and would recommend it anytime you are making an offer on an REO or short sale.

D

Submitting your offers through the Listings Agent vs. Your Broker. This is stil la great debate of benefits and thoughts. Make every day count. Belieev and Achieve! - Joe

Unless I get the deal from an agent, I always go directly to the listing agent without exception. There is something about greasing them with double the commission that get the offer there a little quicker no matter how "boyscout/girlscout" the agent is. Oddly enough I get the best results getting a cash offer with a bank statement POF directly to their assistant/agent, because they have a way of twisting the actual listing agents arm without upsetting the bank whom they are supposed to be representing.

PS: I'm a big fan of your work:)