REO property specialist

[jackhaydon]

I am a realtor who works as a Buyer's Agent, that means I work with investors to help them buy houses. So, I will answer from my perspective.

I just completed a REO transaction, so I can give you some recent info.

The TargetHome was on the market for awhile, and we were watching it because it was priced too high. I checked public records and learned that another investor had picked it up at a foreclosure sale - and paid more than we woul dhave paid for it.....time to wait.

Recently, it came back on the market, so we checked it out - bank owned now. I updated my research and helped one of my investor/customers pick a sales price.

We purchased the property for $145k (56% of arv) on a home worth about $260k (based on comps). The last time it was for sale at $175k - too much.....it needs lots of work....

Jack Haydon

[RELinda]

I hope Im not goiing to get slammed for this, but perhaps he needs to get a course or attend a boot camp on Short sales and get an education.  the boards are for questions and discussion, not a full blown training session.  
For the record I have done several short sales, but not been successful at REO's because banks want retail price and there is always a greater fool out there willing to pay it.

[stantheman]

I hope Im not goiing to get slammed for this, but perhaps he needs to get a course or attend a boot camp on Short sales and get an education.  the boards are for questions and discussion, not a full blown training session.  
For the record I have done several short sales, but not been successful at REO's because banks want retail price and there is always a greater fool out there willing to pay it.

Explain to me why someone should pay for a boot camp when there are plenty of people willing to help? If you are not one of them, dont post.

BTW, almost everything I know about REI has been obtained from this and one other REI board.

[RELinda]

So you are saying that paying for a real estate education for everyone else is ok for us but you want us to regurgitate the info back to you for free, in posts, so you can learn off of our experiences and training, time spent and money?  
I doubt you will get far, I know your type.  You will be out of the business in 6 months, but not before you buy some dog properties :D

[stantheman]

there is always a greater fool out there willing to pay it.

Hmm, does that go for training classes as well?

So you are saying that paying for a real estate education for everyone else is ok for us but you want us to regurgitate the info back to you for free, in posts, so you can learn off of our experiences and training, time spent and money?  
I doubt you will get far, I know your type.  You will be out of the business in 6 months, but not before you buy some dog properties

I dont know Linda. Isnt that what people on this board do? Share the knowledge that they have gained over the years regardless of how they obtained it? I guess if the seasoned investors felt that way, all these posts would have big 0's next to them.

As far as what I'll be doing in 6 months? I doubt I'll be out in 6 months. I've done fairly well in my current business and I started that when I was 21, had no money and fairly no knowledge of the industry (office equipment). I'll be sure to email you a copy of all the REI checks I get after 6 months

[cherdwelth]

You're both right you know. Some people can learn very well through these posts and researching online and reading - while others feel they need the structure of a course. So you are both right. The problem arises when you don't know yourself well enough to pursue the correct educational path.

I wish you both good luck! and big profits!

[REO]

when you say previous foreclosure cost do you mean the costs associated with the foreclosure such as legal fees, carrying costs, loss of money or do you mean what was actually owed on the property?

In another words if i offer what the bank paid for the property do I stand a chance or is it basically based on BPO

It's based on the BPO. But the BPO's can consist of several valuations. I'm seeing more companies list at what the "repaired value" is instead of the "30 day as-is quick sale".
Example:
One of my REO listings 30 day quick sale value was $37,000. My 60-90 day repaired value was $59000. The house listed for middle 50k as-is. A freakin joke.