Making offers on REOs and Hard Money approvals.

[Dennis Pressey Jr]

Hey everybody,

Lets talk submitting REO and Bank Owned offers - not short sale.

Now, I know of the usual question: "What % will get accepted?"

Typically, in New Jersey, REO properties move at 72-75% of original listing price. I have done some research and tracking. This conclusion comes from my own numbers and offers along with supporting records from other sales. It is not unusual to see a property move at 67% in really bad shape.

My question to others that are willing to share is this:

Do you see benefits with no contingency offers? Real, substantial success versus using say a 10 day inspection period. (not interested in maybes or hypothetical guesses)

Reason being - New Jersey is loaded with oil tanks and a septic system is not uncommon. So, the obvious concerns get raised when submitting offers on these. However, my feeling is this - banks may be much more willing to move this type of property (oil and septic) for a larger discount with no contingency, cash offer. Even though your offer will be substantially lower - because you must assume these systems are BAD.

Anybody experience this or have thinking along these lines?

How can you submit an offer with no contingencies with a hard money lender involved - because your lender will require a BPO/appraisal to approve the deal. Many investors I know put offers in as CASH with hard money - which could then raise this issue. No?

Continuing....

I have experience buying no contingencies, no inspections, sight unseen. With access restricted by seller...

Are any of you still able to work with your lender on an external BPO?

Thanks in advance