Wholesaleing REO's

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I am new and just starting out. Had a few ideas on getting started with REO's. One is to wholesale them. Does anyone have an experience with this? I have heard the secret with REO's is to keep making offer after offer.

Any advice is greatly appreciative.

[Brandy Griffin]

Generally speaking, banks that are selling REOs are receiving numerous offers and so they have most of the leverage in the sale. The last REO we bought had 12 other offers on it.

The banks also are interested in moving the property off their books as quickly, easily, and cheaply as possible. That typically means they're looking for offers that:

* are all cash
* are AS-IS contracts
* have no other contingencies
* have a closing date that's sooner than later

Unfortunately, sometimes the banks put the property out on the market and get into a contract when the title is not quite marketable yet. When this happens, they'll ask for extension after extension until the issues -- like code violations, municipal or utility liens -- are cleaned up enough so they can close.

The banks are usually pretty slow at cleaning up title issues, compared to doing it yourself. We just bought 2 sets of triplexes, one via auction and the other via REO. They each had the same kinds of title issues -- we cleaned it up in 3 weeks, but the bank took 3 months to clear the same types of issues. This video explains exactly what happened with those two properties: http://www.youtube.com/watch?v=xx-zj6vxVOU&feature=g-upl

The moral of the story is... if you have a pretty flexible financial scenario set up for the REO deal, you'll be fine. If not, make a backup plan in case your closing gets delayed by weeks or even months.