OfflineHello DG family,
I found what looks like a good deal on the internet. The house is bank owned! how do you guys go about handling these types of properties. I dont have good credit, and I just started with this program, so I dont have much capital either. Should I present an offer and get the house under contract? Do banks accept deals like this?
Thanks for the info
Dave
__________________
Properties are usually brought with all cash by investors. They cannot be assigned, if this was your intention. Your best bet to get started in investing is by way of owner financing and Subject To deals, even Lease Option too. Some of the banks (e.g Bank of America espeically), require you to be prequal and/or in additional to that, show proof of funds.
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If the bank that owns the REO is a large bank, they are not as flexible on providing terms for the acquisition of the property. However, if the bank is a small local bank you may hgave a lot more options at even getting the bank to finance you buying the REO. I put together a few steps in an earlier forum topic. The link is below for your reference:
http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...
I hope this helps. Good luck with real estate invetsing and this REO. Believe and Achieve!
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if you can get a few cash buyers (other investors) that will take great deals you lock up, the REOs are some of the greatest deals. As long as you have a buyer lined up, you can use their resources to lock up these great deals and instead of "assigning" them, you can do a double-close (or simultaneous close). But if you are just starting out, it may be easier to go after FSBOs or at least private sellers.
Wishing you all the success you deserve.
Rina
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Thanks everybody for the input,
so it looks like im going to stick with FSBO for now until I can save some cash for an REO deal. thanks.
I called to look at one house and the broker refused to show me the house unless I had cash or proof of funds first.
Raising kids is like trying to staple Jello to a tree.
ASSETT Management and Bank Addendums will Require 10 Percent
Down and a Bonafide offer and Proof of Funds for a Cash offer.
with a Quick Close. If You Default and Back out of Banks Addendum
You will Loose Your 10 Percent Down Earnest Money Deposit.
A Listing Agent or Broker dont want to waste there Time
on Looky Loose.Only Serious Buyers with Proof of Cash on these deals.
I dont Blame them, REO Agents work very Hard and do a lot of Preperations
on Property they List.