Originally posted by nationwidepi:
Originally posted by Mike M:
One of my best contacts told me that an REO listed for 180,000 sold for all cash, 225,000.
This is common place in So CAL for REO properties on MLS.
Banks have been pricing properties lower on purpose to get 20 offers and have a bidding war between the buyers.
This is exactly what NOT to do as an investor. Why would any ionvestor pay $45k OVER the ask price, when they could have had the ability to work the ask price below $180k and get it before it ever hits the MLS.
As a newbie, I thought I was running my numbers incorrectly -- Will that is one of the reasons I spoke with you, Monday afternoon. I have been encountering a lot of resistance form listing agents who barely even entertain the thought of receiving one of my submissions because of "investors" putting in very high offers.
Just today, I submitted on a property after carefully crunching numbers only to be told I'd be "wasting my time". The broker mentioned that the guy ahead of me had offered slightly less than the asking price. There was a $64,000 spread between his offer and mine -- and this was on a 3 bed/2 bath fixer! Several other buyers ahead of me apparently offered well above the ask.
Depending on the area, banks have indeed spruced up certain properties in order to attract owner/occupants. In particular neighborhoods these places sell faster than Viagra in a bordello.
Screw it. I'm remaining disciplined and sticking to the stuff I've learned in this forum -- no bidding wars for me. I'm here to make money not hold house warming parties bragging about how much more I paid for the joint while I sip my chablis, showing off the master boudoir.
While there are some deals to be had on the MLS, the signal to noise ratio is a little too lopsided for my tastes. Will you have the right idea. Striking before the stuff hits the MLS is the way to go.
Just my .02 cents.
