Losing out to cash buyers

[Nick Scalero]

I placed 3 offers in the last month in California, one of them over asking price. Lost all 3 to cash buyers. I'm offering 20-25% down and have an excellent crredit rating. What's a body to do?

[Will Barnard]

Originally posted by Mike M:

One of my best contacts told me that an REO listed for 180,000 sold for all cash, 225,000.

This is common place in So CAL for REO properties on MLS.
Banks have been pricing properties lower on purpose to get 20 offers and have a bidding war between the buyers.

This is exactly what NOT to do as an investor. Why would any ionvestor pay $45k OVER the ask price, when they could have had the ability to work the ask price below $180k and get it before it ever hits the MLS.