REO Agent

[Kurt Schmid]

I recently met with an REO agent. We discussed real estate in general and my plan in particular. I am going to find REO properties to buy at a discount, rehab and sell.

He mentioned he had some investors that he knew and used when he had a REO he wanted to sell quickly. At that point I was just thinking, how do I become someone he calls when has a REO. He mentioned that investors he likes are those that have a reputation of moving quickly and decisively. Nothing new to me since I have been reading these forums and learning a ton.

Now, I got a little interested because we began talking about a REO he had just been out to see and wasn't on the market yet. It is in a slightly lower income part of the city but that was no shocker, and it's not that bad an area. The bank is working with the current occupants to get the keys which he said should be done in the next couple days.

He actually showed me some pictures and told me that there were probably some un-permitted bedrooms but the overall structure seems to be permitted. Basically meaning someone had added some interior walls at some point without telling the city. He said how it seemed like it could be a good deal and seemed interested in giving me a shot at it.

I know the Realtor's role in this transaction is to represent the bank and that's where he gets paid. He also gets paid more if the property sells for more. These are the reasons I have for not trusting him. I did actually know him before this. We had met at a function completely unrelated to real estate. He seemed like a good, honest person then and he still does now. We also have some mutual friends. Those were my reasons for trusting him.

My questions:
Why would he give me a shot at this instead of an investor he has worked with before? (He probably is giving it to them too isnt he?)
What are your experiences with REO agents?
Do they tend to be more honest because they are hoping to get the listing once the house is rehabbed?

Anyway, I'm not really looking for someone to tell me what to do or what to think. I'm checking up on him and the deal to make sure both are on the up and up. It's just therapeutic to write it all down.