Forums » REOs » Inventory flying off the shelves

Inventory flying off the shelves 8 posts by 8 users

Ingrid N.

Property Manager
Passaic, New Jersey

Posted: 10/10/2008 at 02:51AM

I called the local realtor I've been working with for the past few motnhs on 2 homes that interested me. She told me they're newly listed and already pending. She said the real estate this past week is flying off the shelves in Central Florida. Somehow I find this very hard to believe.

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Rich W.

Real Estate Investor
sioux falls, South Dakota

135 posts

Posted: 10/10/2008 at 05:16AM

Selling or accepting an offer is the easy part. Trying to find a lender that will actually fund a loan is almost impossible currently. Changes just recently include
1. No more 90% investor loans
2. Lenders not doing more than 4 loans to any one investor.
These are big changes.

J S.

Real Estate Investor
Atlanta, Georgia

159 posts

Posted: 10/10/2008 at 01:57PM

Originally posted by Rich Weese

Selling or accepting an offer is the easy part. Trying to find a lender that will actually fund a loan is almost impossible currently. Changes just recently include
1. No more 90% investor loans
2. Lenders not doing more than 4 loans to any one investor.
These are big changes.

This is true for traditional Fannie/Freddie loans, but not necessarily the case for portfolio lenders, rehab loans, or hard money.

Do your research...if you have decent credit, income and/or cash reserves, you can find loans...

Stephani

Real Estate Investor
Tampa, Florida

18 posts

Posted: 10/10/2008 at 06:10PM

There are bidding wars here (in Tampa), when REOs come on the market at a good price.

If the numbers are good, the deals are gone within a day or two. Investors are still buying, but they are buying cheap, cheap, cheap.

Steph

Richard W.

Real Estate Investor
Las Vegas, NV

1167 posts

Posted: 10/10/2008 at 06:23PM

Here in Las Vegas REOs are seeing multiple offers as well. Those trying to sell retail are generally unable to compete with all of the REO properties available. The banks have slashed the prices so much that they are generally be sold for more than the asking price because of the multiple offers.

Greg S.

Residential Real Estate Broker
Highlands Ranch, CO

11 posts

Posted: 10/10/2008 at 06:57PM

Ditto here in Denver! Most REO properties, especially in the lower price ranges have 5 to 10 offers on them and go to "highest and best" status - and are under contract for over asking price - within days!

James G.

Residential Real Estate Agent
Clearwater, FL

67 posts

Posted: 10/15/2008 at 12:07PM

I have to agree with Stephani,
Here in the Tampa market you can buy super cheap investment properties right now.

Christian M.

Real Estate Investor
Harrisburg, PA

Moderator

603 posts

Posted: 10/16/2008 at 08:26AM

Our primarly lender "cut us off" about 6 months ago. We have great credit (750+ for each of the 4 Sub S shareholders) and PERFECT payment history. They are simply not doing investor loans for SFD or multis with 4 units or less (we invest almost exclusively in this size multi). Now, I guess if we were to bring 30% or 40% of contract price to the table, they may reconsider based on our history.

The silver lining, if there is one, is we jumped on this right away and about 5 months ago went to two other banks with a full investor's packet, including: financial statements, tax returns, LTV or each property and entire portfolio, and portfolio holdings with current rents and cash flow per unit. Both of those banks will play ball with us. They will only do 80% LTV of contract price or appraisal (whichever is less) by the letter of their policies, but on our last deal (4 months ago) the one did 80% LTV of appraised value, which came in significantly higher than contract price, giving us about $20k cash out for remodeling expenses.

It is certainly a touch-and-go market with the well-established players who have good credit and a clean history still able to do deals.