Pursuing First Fix & Flip

[Rahul Sunkavalli]

Found a REO property that has been sitting around for 120 days and in need of some lite rehab (25k) from walking through it. It is in an area where I would have thought it would have been flipped aready so I am not sure if I am missing something here.

Any thoughts why a REO, priced about 65k lower than expected ARV to start, is not selling?

Thanks!

[Wes Johnson]

Yes and no. Most of the guys I knew were laid off with me and are now investors too lol The REO game and the level of bank motivation is very market dependant. Back then (2010-2013) we had too many houses so even though we were still slow and bureaucratic the response and lead time to offload those properties was much faster. Now that all of the foreclosures have dried up the banks feel no pressure to sell. They'll usually just tell you to wait until it's listed with their preferred local realtor. They very rarely tell you who that realtor will be or when it'll be listed and is usually months sometimes a year out before they actually do anything with it. I found a great potential flip owned by BofA 18mos ago and after a month of getting the run around I gave up on it. they just now listed it. Unless you have an inside man or know the REO specialist personally it's a hard lead source to work right now.