First Time Home Buyer / Investor Seeking REOs

[Tony G.]

Hey everyone, just stumbled on this site!

A little background info, I just finished law school in Miami, but I'm stuck here for another 2 years until my fiance graduates, with bleak employment prospects. The good news though is I have a bit of cash saved up.

In 3 months our lease expires and market rent in the area are averaging $2200/month. I thought it'd be smart to buy, since I can (at least) break even by the time we move. I'm looking to do a cash offer, absolute ceiling is around $170k (budgeting 10k for closing, title, taxes, etc; another $10-20k for repairs).

I have been shopping REOs primarily (only ones within my price range that aren't completely dilapidated), looking actively for about 2 months. The first 2 properties listed and sold within a day before I could even go take a look, at this time I decided to get a buyer's agent, and managed to put in an offer on a 3rd (which Bank specified 1 week bidding period, BEST and FINAL offer with no counters) and lost, bidding 150k on a 149k asking with 130-150k comparables. I'm now eyeing my 4th (a duplex with great rental potential) and wanting to put in an offer, this time thinking of going 8-10k above asking.

It seems like the reasonably priced ones (near or at market) are closing simultaneously with listing? The average turnaround time to my inquiries from seller's agents (and mine) are around 2-3 days. I have this feeling that there's some insider track I'm not aware of, and most deals are being handed out under the table.

I have cash ready, I have proof of funds. Am I hurting myself by using a buyer's agent? Would the bank REO-brokers be more inclined to look at my offer if they get the entire 5% commission? Are there secret society meetings where REOs are carved up and handed out based on who-you-know?

Any advice?