Justfying your offer on REOs

[Renel St. Fleur]

On my previous post, I need answers on the Earnest money, but I have got that settled. Now me and my partner are ready to make offers on REOs. We trying to see if we can do it a different way so we can have a higher ratio of offers accepted. We are going after high end homes that has been on the market for 100+ days and making cash offers. Many investors Ive heard are just making lowball offers on many properties and I completely understand that it is a numbers game, which is why we are doing the same thing. However, if I was making a low ball offer, I would like to justify by presenting them with a CMA from our Realtor, giving them a cover letter showing how we came to that offer and a list of repairs that are needed.

I understand its more work to do, but I feel that maybe I can get my offers accepted more if I explained why I made a lowball offer,and I just wanted to if anyone has done anything similar to that and were they successful. My partner wants to make a lot of offers, but I wanna do them to at least show the bank that I did some homework on these homes.

What are your thought?

[Curt Davis]

Renel,

Though your intentions and the idea sounds like it would work. The reality is the REO agent who represents the bank does not care about that. Typically it all comes down to how long the home has been on the market. 100 days + is a long time but banks usually have some type of formula for decreasing the price and what they will accept.

What you are wanting to do would probably work if you were doing a short sale where you want to make the home look worse then it really is with facts and reports and all.

Good luck.