Am I crazy in the Inland Empire?

[Doug Haisten]

I am trying to buy and wholesale to a buyer REO properties. I am first trying to establish "relationships" with reo listing agents. I think this is a harder "row to hoe" than most think. Anyway 2 different agents keep telling me the 60% ARV- repairs doesn't work around the Inland Empire (Southern California). They keep bringing me deals that the bank won't accept any offer less than some amount that does not fit that equation. For instance, one agent today called all excited about a 25 yo SFR, 3/1.75; 1130 sq ft, REO. It is in a good neighborhood. The comps from past sales within 1 mile or less of this property (20% +/- sq ft, same bd/ba, properties sold within 60 day) is $123,000. The realtor says the bank won't take less than $110,000. The realtor says it needs paint and carpet. I would buying all cash.

To me I should pass on this. Just simple math has this a loosing deal (MV - purchase price - selling costs- holding costs - paint/carpet - potential earning of the money in a bank) without even considering upgrades and a 5% discount to speed up a sale or a profit.

My difficulty in getting agents to understand or bring deals to me that I am looking for makes me wonder if I am looking at this wrong? Am I way off here?