REO Question

[Greg P.]

Ok, I've heard and learned to try to find a listing agent who lists many of the REO's in the target area. Let's say that I find one, make a offer and it gets accepted. Who is suppose to show the buyer the property? Am I suppose to go with the buyer to see the realtor and see the property together? I guess it would be kinda awkward because the Buyer might think.. "why am I buying through this guy, when I can just go through a realtor?" Please let me know your thoughts and the process. Thank you.

[J Scott]

The best case scenario is that you can get access to the property without an agent. For example, if it's on a contractor lockbox, get the code to the lockbox (you'll find that 90% of the agents use the same few codes).

If you can't do that, find a buyer's agent who will work with you on getting your buyers through the property. Many buyers agents aren't going to be happy about you wholesaling the REO (they know their commission is at risk if you can't find a buyer), but if you find a good one who will work with you, this is the way to go.

Another option is to tell your buyer's agent that you're taking a contractor through, but then you need to have your buyer lie as well.

The very last resort is to make offers directly to the Listing Agent for REOs. Many times, the listing agent won't want to (or won't be allowed to) take your offer directly, and even if they will, they will never be representing. They only represent the seller.

As for what to tell your buyer...tell him the truth. Tell him that you have a property under contract for a great price, and that he's buying it from you for a great price. Everyone wins...

Your buyer is going to find out eventually, so no reason to hide it.

Btw, the best solution to your problem is to get your RE license...then, not only will you have access to the MLS and all the properties, but you'll earn money on every house you buy (and save on every house you sell).