Are CT Bank REO's Not Selling REO's Sell Undermarket No More

[Edwin De leon]

I want to simply know if I should go after REO 3-4 Multifamily Properties in Connecticut or I shouldn't, is it a waste of time for me to go after them if I am looking for undermarket value prices multifamily houses in CT .......... is this true or false below:

Just got off the phone with someone that told me in state of CT, banks who have REO's, don't have the inventory like before to let their properties sell at under market value prices anymore, and are repairing their own properties to get top dollar for them, so it is a waste of time to try to purchase them and rehab them to make money from them in the state of CT.

If this is true, then if I want to still find undermarket value multifamily houses in state of CT to purchase with my VA Loan, should i be going for Foreclosure properties instead of REO properties, but won't the foreclosure sellers want cash buyers instead of someone like me who wants to use the VA LOAN to purchase my 1st multifamily property.

[Nathan Grabau]

Every lender is going to handle REO's on their balance sheet differently. We have a substantial inventory crunch still, so banks do not need to sell under market value to get them off their balance sheets. That being said, of the bankers that I interact with, they don't really want to be rehabbers or RE investors, they want to move paper. It would surprise me if they were broadly doing their own rehabs, but I could see individual banks doing this.

If buying under market value is important to you, I would start contacting investors directly by driving for dollars. In my market, as flippers have reduced their activity, distressed inventory is also going for a discount relative to the rest of the market.