Potential REO Deal

[Robert Burns]

I found what may be potentially a good REO property. I have never done an REO deal so I need some advice. This house is a SFR, 1300 sqft, 3/1 in relatively good condition needing mostly cosmetic upgrades ($5,000). The ARV is approximately $85,000 and the bank's starting price is $46,600. I've talked to the realtor assigned to this property. I was considering offering $30,000 and see what the bank will do. What do I do next?

[Daniil Kleyman]

Robert, if you plan to close with cash, first thing you want to do is get a POF (proof of funds). If you are going to lowball an REO, being a cash buyer, showing the seller that you have cash in hand, and can close quickly will help you get the price you want. I've repeatedly seen situations where, as an example:

Asking price for property is 70k, buyer 1 offers $65k with rehab financing, buyer 2 offers $55k CASH and wins the property.

Second thing you shoud do is make an offer!