What Are The Banks Taking For REOs?

[Craig Whitehead]

I have a potential REO deal in the works. An investor is interested in purchasing another rental property to buy and hold and I have a realtor who sent me a number of possibilities that I presented to the buyer. The buyer is now interested in going forward.

I indicated to the realtor going in that I wanted to pick up properties for no more than 50-60 cents on the dollar to flip to my end buyer. I would purchase the property at that level and flip it for around 85 cents and pay the realtor the standard commission for her help in making the pitch to the bank. The realtor also indicated to me that she would have no problem whay I proposed and would help with the offer. The realtor is now telling me that banks in this area (Western PA) are not dealing that low, that she's been rejected or not getting responses on offers as high as 90 cents on the dollar. I don't know what to make of this.

Is this the straight scoop or not?