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rcrane Category: Need Advice
Current Grade: B+
Total Views: 422
Member Comments: 2
 Posted on: 04/16/2008
Posted by: rcrane
Blog Points: 19
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I am just starting out and I am making offers on REO properties and would like any advise that anyone is willing to give me. I want to be able to make this a great experience and learn from those who have been there and sone that.

Robbin

Current Grade: B+
Category: Need Advice
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JohnCorey
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Posted By: JohnCorey on 04/17/2008
In many ways REOs are no different. To find a good deal means doing your homework and knowing your market.

The only difference in my book is the fact that the seller is not emotionally tied to the property. Legally a bank must liquidate the property or they can have their license to operate the bank pulled (extreme but it happened as recently as December for one bank).

John Corey

PS. I did my first REO deal in 1984. I like REOs as I find banks easier to deal with than owner occupants who are facing foreclosure.
 
RealEstateInvestor

Posted By: RealEstateInvestor on 04/16/2008
Hi Robin, that's a good question.  Unfortunately I'm not experienced or knowledgeable to give you an answer to your question.  However it's great that you jumped right in here and got involved in this wonderful community!   There are many people here who I think will be able to help you and answer many of your questions.

Are the REO properties your looking at listed through a realator?  I think most the time the bank does use a realtor.  The realtors don't make as much commission on them, but from what I have read it's a good business for them because there are so many REO properties out there on the market due to all the foreclosures right now.  I think you have to have cash for REO deals, but you should ask a mortgage person here if an investor can get a mortgage on them.  I would think it would be possible, but I'm not sure how that would all work out in conjunction with the bank  holding the property.  Banks want to get rid of failed real estate loans and clean up their books.  Please let me know what you find out.  I do know some banks sell REO's in large bulk pools just like you can buy stocks together in a mutual fund.  Well not exactly like that but kind of.

Welcome to the community and best of success!
Joel