EMD for REO's

[Rick Cardenas]

Hi Guys I am new so bare with me.

I am looking to put a few offers out there on some REO's. I will be using transactional funding on them and bringing in my own end buyer. My question is on my initial offer to the REO lender how much deposit do I need?

Hope you all had a great Thanksgiving!

[Lloyd Dixon]

Originally posted by Paul Cordero:

I always try to get at least 2% or $500 whichever is greater. $5000 would be good EM depending on the purchase price.

I agree with Paul. I have purchased several REOs throughout the years. When the EM is 2% or $5,000 (greater of the two), banks will take a more serious look at the offer.

If you are indeed new to this Rick, I should mention that EM is just a piece of the puzzle. Make sure you (or your agent) is presenting the offer properly...submit with your offer POF, FICO, underwriting approval (if possible) and any other type of documentation that shows you are for real. The more comfortable the bank is with your ability to close, the more of a discount you will likely be able to negotiate.

Good luck.