Know your market!

[Ingrid Nagy]

Wherever you choose to invest in REO's be sure that you know your market very well and work with a local agent to be up to date on the latest available listings. I was contacted by a member of BP regarding an REO available in my market and it was offered to me at 40% of ARV. The asking price was $5K more than the realtor listed asking price which is understandable since a wholesaler must make a fee or commission. I'm sure this person had no ill intentions and was simply presenting the property as it was presented to them. Knowing my market and watching this property for the past year, the asking price is more like 85% of ARV, if that. The property directly across the street was listed for the past yr at $110K as is. The bank rehabbed at their expense and relisted for $90K. No bites. It's now listed fully rehabbed at $83K.