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dhunting59 Category: Need Advice
Current Grade: A
Total Views: 770
Member Comments: 5
 Posted on: 05/19/2008
Posted by: dhunting59
Blog Points: 68
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I am in a rut.  I am making offers on properties every week, but have been rejected time after time, either the seller wants a higher price or I am out bid by someone else.  All the property I am looking at has been lender owned foreclosures.  What should I be offering?  I see 70% on most the sites, but this seems to be too low for everyone.  Any advice is appriciated.

 

 

Current Grade: A
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Vieving 1 - 4 out of 4 comments
JohnCorey
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Posted By: JohnCorey on 05/21/2008
You are trying to buy REOs. The prior debt matters little to what the bank will take. In many ways they have already absorbed the pain when they took the place back. The rule of 80% or 82% applies for short sales when the lender has insurance behind their position. That is not a factor for REOs.

If you want to overpay then do ahead and expect to slowly or quickly lose money. If you just stick to your guys you will find a deal sooner or later. See if you can figure out just how many other investors are beating you to the deals. If most are smaller they cannot handle more than one or two at a time. If they get one accepted they will largely be out of the market for a period.

You need to run a profitable business. You do not need to win deals if they are not really going to be profitable.

John Corey
www.ChelseaPrivateEquity.com/blog
 
pauliewalnuts

Posted By: pauliewalnuts on 05/20/2008
Keep making offers and don't over pay even if you feel you need to buy the house.  I'm not sure what market you are in, but you should be patient. 
 
<p>J.Reyne & Associates&copy</p>

Posted By:

J.Reyne & Associates©

 on 05/19/2008
Dont give up man! Even Colin said it took him almost 20 Shortsales before he even closed 1! It happends.... just keep grinding!
 
Brian Lucier
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Posted By: Brian Lucier on 05/19/2008
Most banker brokers I am dealing with in Massachusetts require 80% loan to value for Short Sales. Hope this helps. I would also ask them what offers are getting accepted and why theirs worked. Take the time to get in their head to see what they see.

Great job on getting out there and making offers. If you keep swinging, you're going to hit one. If you can get at 70% LTV, thats great, but usually you need to provide a list of damages and repairs with an estimate for repairs to get them to go beneath 80%. Keep it up, you're doing great.

Brian Lucier