REO

[Hoang Tran]

Do you think REO properties are a good start for a new investor? Please give me any tips. Any and every tip will be appreciated. Thanks.

[Jon Holdman]

REOs are something of a numbers game.  Make lots and lots of offers and you'll eventually buy one.  Don't expect a significant discount off the listing price, especially if the property has only just been listed.  After 90-120 days, maybe.  Sellers will periodically drop their prices and that's a good time to QUICKLY resubmit your offer.  You need to have an agent you're working closely with who can quickly submit offers when deals appear.  Good deals move quick.  All cash offers (meaning YOU have the money to close) are the strongest.  But you can buy with a financed offer if you have a lender that will fund the property and a pre-approval letter.  Many REOs are in such bad condition that you may have a hard time getting a conventional loan approved.  If the listing say "cash offers only" or some such, that's a clue the condition is poor.