Bank Accepted My Offer on Foreclosure!!

maybe you can ask them if you offer the 40k if they'd be willing to throw in the 10-15k it will take to fix it into the loan, or use that as a negotiating item

Negotiate your way to the deal. All the best.

Sandra

Thanks for the ideas and motivation!!

I called the coaches again and discussed my situation. I am going to get some updated comps and run some numbers. Hopefully it still works out and I will have my first property!!

Thanks again!

How much will the house b worth after u fix it up

The house's after repair value is estimated between 80-100k.

I would ask for time for repairs, c/c get some comps so you can appreciate their offer, what is your plan? keep - flip? You will do Well. Fear it and do it, thats the Fun part. If Not I will buy it,Ha Ha.

Isn't it exciting! I am so happy for you and wish you the best! Go for all the suggestions here! I have SO many REOS that have been sitting just under a year or more than a year sitting with this one real estate company, and they won't put in offers below 80%; and so all the homes are sitting there! Its aggravating! How did you put your offer in? Do you have a RE agent representing you or did you put in the offer yourself directly with their RE agent? I've ended up sending emails to the banks about making offers on properties that their agents won't present my offers to!

Wish you all the best and a smooth transaction with few problems (although, problems are always learning tools! )

Figure out what you want to do with the deal. Buy and hold, flip, lease/option before you go back to the bank with a counter. Depends on the comps in the area if you should flip. Buy and hold might be an idea to start getting some money back also and you might not have to do so much in repairs. Good situation to be in, Good Luck...Jan

But before you ask for concessions, have a counter to whatever they do

If you ask they pay closing costs(you actually do just not out of pocket at closing) and they counter 0-50%, are you ok with that???

If you ask they credit you the 15K to fix it up, would you be ok if they said no or only willing to give you 5-8k???

Overall, if they said 40k take it or leave it, you'd be a fool to not take it. This is your first deal no matter how it rolls out you're getting a gem

G-E-M

Think quick and don't be greedy

I am going to ask them to pay closing costs and perhaps a period of time (2-3 months) before any payments need to be paid so I can make repairs. I will let you all know how the bank responds.

I plan on holding it for awhile and renting it out for positive cash flow. Or if a good opportunity comes along to do a lease option, I'd consider that too.

Tammy, I went through a RE agent (who is actually my uncle) and he knew the listing agent personally (its a small town). The listing agent is actually the wife of the President of the bank who owns the house (very small town, i know!) So there were a lot of informal verbal offers being thrown around until I walked out on the deal about 2 months ago.

Now the bank is willing to take my offer. We'll see.

Thanks again DG family.

Great job Ryan. Your situation shows the benefit of constantly making offers on your terms. The seller may not be willing to let the property go for your low offer now, but you never know when the seller's situation and motivation will change and the offer they once rejected is now accepted. Offers eventually turn into deals.

Glad to see you get your first deal. I would say ask for a much as you think they may give. If the bank will not deal, there will be more homes to come.

Best of luck

Steve.

you have just attached yourself to an endless, first dibs supply of bank owned homes to buy and sell at your whim if you work it correctly

Speak to the sellers and President of bank after you've purchased their properties and tell them you have a large amount of buyers who would be willingt o take properties off their books and quickly

See how they respond and it should be positive; you put money in their pockets

Good luck

ELIXBROWN hit the nail on the head. The best time to tell them this is the day of the transaction. You will be the gateway for them potentially so look into this potential long-term referal source!

I had a deal just like this. I offered the bank 129,000 for a prop on the market at 149,000. they rejected my offer then came back to me 2 months later. I thanked them but told them I have already bought another house and had very little money left. After setting the stage I told the broker I lover the house but had to ajust my offer. He was ****ed, told me the bank would never eccept a new offer. I ajusted the offer to 100,000 and resubmitted. I got the deal plus the bank gave me 2,000 to remove some asbestos. So I got the deal for $98,000.
Its like dating the worst thing they can say is no. If you don't ask you will never know.
Great job.

adam

Take the deal for 40k, don't be greedy you got your price. If the bank offers
the house to someone else you blew the deal. Also, you have a reputation if you get know for nitpicking how many more deals do you think the bank will give you? You can always negotiate for something else once your in the door,
but don't let the door close with you on the outside if it's a good deal.

I really feel that some of the banks, like to punch themselves in the nose!
My attorney came up with that one. Timing is everything, however as eager as I was to close my first deal, it was in my case critical that the the deal would cash flow.In this market it is my observation that prices for investors need to be below what one may have paid for the same house 10 or 12 years ago. Question! Would you pay the same price for a home today, the same amount that you had sold it for, say 5 or 10 years ago? Think about that. If you are new to investing that will be hard for you to answer, however you can place yourself there (10 years) ago with market research.
I have about 18 years of exp and in the neighborhood where I live there are houses that I once owned, sold, watched change hands and in some cases end up in REO. In many cases I can and have bought the SAME HOUSE for less that I paid at least 10 years ago. This is not discourage you. There is always another deal and a bad deal will not go away any time soon! If I were in your shoes I would let them know that my offer was only good for a certain time, that I will be happy to pay cash in the amount of $26,525,56. (example) The value of any property is established by the price that is paid at closing! The value of any property on the market for over one year (which greatly lessens the value in my books)is undetermined, but we know that the asking price after even 3 or 4 months is too much, else the home would have been sold. Happy Investing! Stay in the hunt!

I love the connections in a small town. It's kind of funny and made me laugh, but that can be a plus. I live in a small town to and am reluctant to buy here as the income level here is really low. maybe I should try networking within the community. Best of Luck.

how did the deal end up working out?

My business partner and I decided to pass on the foreclosure. We found out it was going to be a bigger hassle to fix repairs, in regards to effort and/or money. We also came across a couple other deals that could possible work out better. And since Im still looking for my first deal I didnt want too much on my plate at once.

Thank you all for your support!!

My current deal is a wholesale property... I just made a new forum for it.

and good luck with your current deal.

Good luck on your new deal. Keep us informed.

Bertha

Do not upset the apple cart and try to be greedy. They called because they accepted your offer.

They did not say, we will take any offer!!! You have room to make money here and you need to run with it.

The property could have went up in value already and you may not even know it. Your paying 50% of market value.

You have options. You could sell to a investor for $50,000.00 and make $10,000.00. You could lease to own with $5,000.00 upfront and $800 to $1000 a month with the lease option payor covering all the operating costs including the taxes.

You need to line up your financing and your exit strategy immediately and move on the deal.

Drop me a line if you have questions.