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Hey YoungREI:

I don't think there's any right or wrong answer here. I've used one guy for all my REO purchases. I did all the work though, and that was ok with me. I happened to stumple upon a home on-line on a realtor website. All the realtors are basically working with the same listings. I went through the home with this particular realtor ( who was the listing agent) and got the home about a week later. This gave me great credibility with the realtor because he saw that I was serious. One thing that will mean a lot to the realtor is their sense that you're serious, pre-financed, and you stick to your word and do what you said you would do. After that first home, he knew he could trust me, had faith in me, and eventually did almost zero work for me. I did all the searching for the homes on-line, called him for the lockbox codes ( yes that's not completely Kosher , but he new I am totally trustworthy) and he simply meets me at his office for the paperwork and potential closing.

All in all, build a close honest relationship with one or two REO realtors (or just realtors in general ) and you'll do well.

Good luck!!

Hey Gun- Typically on a Tax Lien sale, the county or city or state puts a lien on the home because of unpaid taxes. The homeowner is then notified that the taxes must be paid in full or it will go to auction. Usually the mortgage holder is already aware of this and is on top of it because a tax lien typically takes number one priority, even over the mortgage holder. The bank doesn't want to lose the home for pennies on the dollar so they pay the taxes and then play hardball with the homeowner. If an investor happens to snag one these properties, they usually have to wait a certain amount of time before actually taking ownership of the property. Here in Michigan, a homeowner has a 6 month redemption period in a foreclosure process ( and I think it is one year for a tax lien sale). You get paid a heavy interest rate by the homeowner if they pay you back before losing the home.

Good Luck!

It all depends where the foreclosure is in the "process". At the courthouse steps usually requires "cash". No financing, etc... If it's a bank REO, no problem. Conventional financing usually works (depending on credit score of course). I don't know what everyone else thinks, but I think the typical stories of foreclosures being totally trashed are a little
over-reactive. Yes, the lender will require an appraisal. But if the home is in "habital" condition, it's a done deal. That's not to say that their aren't nightmare stories out there.

All in all, you definately can get financing on foreclosures just as long as a "scud missle" hasn't ripped through it.

Good Luck!!

Johnny Mac

Hey Everybody:

Buying an REO is no different than any other home. Your seller is just the bank. I just closed on one last week. A few offer/counteroffers and it's a done deal. Just don't submit a rediculously lowball price because all your credibility will go out the window. Also, don't make the mistake I did by offering them the asking price ( I did this because they dropped the listing price by $40,000 on a $115,000 house). Opps!!

HEY:
I'VE BOUGHT 2 FANNIE MAE REO'S OVER THE PAST YEAR HERE IN MICHIGAN. F/MAE SIMPLY PAYS OFF THE BANK(I THINK IT'S ABOUT 85%
OF FMV). THEN F/MAE LISTS AND SELLS IT THROUGH A REALTOR. THE 2 I PURCHASED WERE ABOUT $20,000 BELOW FMV AND ABOUT $10,000-$12,000 LESS THAN THE ASKING PRICE. F/MAE'S FLEXIBILITY HAS DEFINITELY BEEN TIGHTENED UP THOUGH OVER THE PAST YEAR.

I CAN'T ANSWER YOUR QUESTION REGARDING WHY THEY WOULD MARKET THE PROPERTY BELOW FMV. I'M NOT DOUBTING YOUR RESEARCH, BUT COULD YOU HAVE POSSIBLY GOTTEN "BAD" NUMBERS??

THEY TYPICALLY LIST THE PROPERTY FOR FMV IN THAT SPECIFIC AREA AND WORK DOWN FROM THERE.

I HOPE THAT'S A LITTLE HELPFUL.

JOHN MCNAMARA

Hey PVT. Flipping can be extremely profitable. Yes, there are hoops you might have to jump through, but that's life. Your statement about finding properties below market value is the core of real estate investing.

YOU MAKE MONEY WHEN YOU BUY THE PROPERTY, NOT WHEN YOU SELL.

I did my first flip last year. A light rehab, Fannie Mae Foreclosure. I did a ton of studying and educated myself. I bought the property in July and sold it in October for a $9,000 profit.

I can tell you that my biggest mistake was generalizing fix up costs. You need to have it down to the dollar BEFORE you purchase the property so you know the "net" before even starting on the project.

Is it worth it?? Absolutley. If you haven't done a project yet, or picked up
your first property, let me just quote my real estate investing mentor, Robert Shemin "How has fear and doubt ever served you?"

Go for it. I guaratee it'll be in your blood after you do your first deal.

Good Luck and God Bless Johnny Mac

HEY EVERYONE:

I JUST STUMBLED UPON THIS SITE. EXCELLENT INFO. THE MARKET IS PRETTY SLOW HERE IN METRO DETROIT. A TOTAL BUYERS MARKET SO FLIPPING/REHABS/ETC... PRETTY TOUGH RIGHT NOW. A NICE LEASE/OPTION MARKET RIGHT NOW. I JUST DID MY FIRST SUB2 DEAL AND LEASE/OPTIONES IT OUT 5 DAYS LATER FOR A PRETTY NICE BACK END (IF THEY EXERCISE THE OPTION IN 18 MONTHS).

I THINK WE'LL ALL AGREE THAT REAL ESTATE INVESTING IS GREAT BECAUSE OF THE DIFFERENT METHODS AND OPTIONS.

EDUCATION IS DEFINITELY THE KEY. I HAVE A LOT TO LEARN, AND I'M SURE THIS SITE WILL HELP.

HAPPY INVESTING AND GOD BLESS YOU ALL!

Johnny Mac