All Forum Posts by: Ed Beck

Fannie is the only one I see doing it here in Jersey...mostly band aid stuff - carpet, interior paint, replace dishwasher. I've seen it on quite a few, but only to this extent. And only on properties that need minor cosmetic. Guess they think excessive wear and tear is a detriment to marketing, which it could be. They're making the house look 'nice' to a first time home buyer looking at entry level priced homes.

http://www.nj.com/business/index.ssf/2012/02/state_supreme_court_decision_c.html

I posted the link on BP this morning. I'll copy and paste in here.

You can try. I'd say it's 50/50, but they will re list with another broker. We get 'flip files' all the time - properties other brokers couldn't sell. The hard part will be getting the right person on the phone.

I'm an REO agent in NJ, and well, the past 14 months have been pretty quiet with the legal battles that have been going on here between the banks and the courts...but yesterday, a supreme court decision may have just opened the gates for foreclosures in NJ. The inventory has slowed to a trickle and alot of what is out there has gone stale. I think we are about to go back to the feeding frenzy of 2009...multiple offers, etc...It's gonna be a good time for NJ investors (and for REO agents) the next few years. Send me a message NJ investors. At American Realty Services, all we do is REO, and we list properties for all of the banks and servicers. If you're looking in the Rockaway area, Dover would be the most likely area for you to find something (right next door). Hit me up. If I don't have it now, I will eventually.

If you don't get anywhere with the banks and end up having to wait til they hit the MLS, just make sure you bring a strong offer...list price or better, cash, no contingencies and a decent earnest money deposit and you should have no problem. The ones who lose out are the low ballers with little to no earnest money deposit, all sorts of inspection continegencies, etc. If you think they are going to be hot, then have your checkbook and proof of funds in hand when view them.

Interesting, and informative. As an REO agent, if you called me and you can provide proof of funds or have been preapproved for a 203k (if need be), then there is no reason I shouldn't try and get you into an REO, regardless of your track record. Let the money do the talking. If we go to closing and you are successful on your first deal, I'm the first person you're going to contact when you're ready for the next one. If I provide you with misinformation regarding ARV or anything, you will not succeed and thus won't be calling to buy another. It's in my best interest to provide you with accurate information so that we can complete future transactions. I won't give out the lockbox code because a) the banks check their properties now, and if someone is in there without an agent, it's no more listings for me. and b) I would prefer to be there when you view a property, because if you are interested in making an offer, you have your checkbook and proof of funds in hand, and I have a pen and an offer in hand. One tip I feel goes a long way, with me at least, is that when an investor calls me to 'check in' every few weeks. Just a quick call to see if there is anything new, see what's going on with the REO market, etc. It tells me you're actively looking, you're still out there, it keeps you fresh in my mind when something that suits you comes into my inventory. I set people up to recieve my bank owned listings immediately as they hit the MLS. I recently sold a 2 family REO to a woman I showed 1 property to over a year ago. She was getting my autoemails all that time and this one came up, and she called me immediatley, I met her that day, and she was able to make the deal, despite the 11 other offers that came in the first 5 days. I agree with Will: be personable, state your goals, be honest, and any REO agent should work with you.

Make an appointment to view the property and bring proof of funds and a check with you. If the property suits you, then make the offer at the site. If there is an inspection issue, then there is an inspection issue, it is what it is, you have the right to back out per the contract. An experienced agent should know deals fall through based on inspections all the time. The key to an REO broker is the proof of funds. If I've seen your proof of funds, which I have because you submitted it with your offer. If you back out, the agent is left with a ready, willing and able buyer who has proved he has the funds and is CURRENTLY looking for an REO to purchase. Cross you off my list? I think not.

In my area, 6 months ago I would tell investors they were wasting their time low-balling (but I still submit any offer that investors wish to make, I have a fiduciary responsibility to do so). Most banks were flat out rejecting low balls and getting very close to, if not more than asking in most cases. Now, since the banks haven't been releasing foreclosures to the market for the past 10 months (here) due to the courts tying them up, I'm seeing alot of low offers being accepted on the current inventory. I'm guessing it's an effort to clear out existing inventory to make room for the thousands of foreclosures that are coming down the pipe.
Each bank operates different in that some might list for $50,000 less than what the BPO/appraisal recommends, some $50,000 over the recommended list price. The amount owed is not a factor in considering list price. There is no mortgage anymore. It was extinguished when the foreclosure took place. Also, repairs are taken into consideration when a price is recommended. What it is worth to you, and market value may not be near each other. Offer what it is worth to you. If an agent refuses to submit your offer, then they will make half of what the have the potential to make, because you never know what is going to stick, especially these days. Geri Johnson, thanks for the blanket statement on REO agents. There are crappy REO agents. There are also crappy car mechanics and crappy people at whatever-it-is you do. If I know someone that is interested in a property, but only at a certain price, you can bet I am contacting them when the price is in their ballpark.

I've tried...stuck my toe in the water...but just never stuck with it, a blog here and there every couple of months. This might be the push I needed...I'm going to review the links and videos you posted here and see if it will help me find my way. I know the power of it, just haven't been disciplined enough to harness it.