REO For Sale – You Can Get An Amazing Deal Purchasing an REO Property If You
Follow These Rules
REO For Sale
Someone once said, “Smart investors make money whether we
are in a Bull Market or a Bear Market.”
Whether you are buying a home as a primary residence or as investment properties, you are an investor.
That being said, one of the hottest real estate investment markets at the moment is the REO for Sale market!
It’s hot because few people know how to properly navigate these seemingly choppy waters.
If you take the time to master these three simple REO Property rules for dealing with any REO for Sale property,
you will be on your way to snagging an incredible deal on a home or homes.
Rule #1 For Dealing With Any REO for Sale
Be ready to close the deal as soon as your offer
is accepted. One of the dreaded scourges of any bank REO Department is a real estate speculator. Be clear on this
truth, you are real estate speculator if you put an offer on a piece of property with the intent of obtaining
financing if your offer is accepted. You need to realize that managers of REO departments are under an extreme
amount of stress and pressure.
If they have too many foreclosed homes on the books they look incompetent. If they sell to soon and don't get
high enough sell prices for the properties they look incompetent. If they accept an offer that later turns out the
purchaser is unable to obtain financing, once again, they look incompetent. By being ready to close the deal
immediately after your offer is accepted you make the REO Department manager look like a REO guru.
Rule #2 For Dealing With Any REO for Sale
Make sure the REO RE Agent knows his or her stuff.
Oftentimes, the real estate agents assigned to sell REO properties don't really comprehend all of the dynamics
involved in selling these properties. For example, they are working under the false pretense that they're going to
give full price for the property. If this was 2005, they could wait it out and get the price they're asking. But
this is not 2005, its 2009 and the market is filled to overflowing with REO properties. A savvy REO for Sale real
estate agent will recognize when they have a buyer that is ready to close the deal here and now and they will
present the offer to broker and bank in such a way to get them to see the light.
Rule #3 For Dealing With Any REO for Sale
Don’t get emotionally attached to the property. In
this market REO for Sale properties are a dime a dozen. I know some Bank Owned REO Department managers who pop
Maalox every time they look at the new foreclosure statistics. They are getting awfully close to the maximum amount
of properties they can have on the books and when they get to that point, they will make incredible deals for cash
However, if you put an offer on a REO listing that you love but you're dealing with a REO property manager whose
strategy is to hold out until the market corrects itself, just walk away from the deal. You can be guaranteed most
of those individuals are going to be out job hunting, probably sooner than later. By staying emotionally detached,
your offers will be more in line with the current market conditions. If you don’t know, it’s a buyer’s market and
you should expect an incredible deal!
In the movie, “Heat” Neil McCauley, played by Robert De Niro tells one of his running buddies, “Don't let
yourself get attached to anything you are not willing to walk out on in thirty seconds flat, if you feel the heat
around the corner.”
When it comes to REO for sale properties, the same rule applies. Don’t get attached to any property and be ready
to walk away if the Bank REO department won’t play ball with you. Remember, in this buyer’s market, you will find
the deal you’re looking for.
Implementing those three rules into your REO game plan will land you the deal you seek, GUARANTEED!
Source: Harold Becker, REODr.com