All Forum Posts by: Ron Todd

Hi BP,

I listed a house for rent/for sale with an agent in NJ. I haven't been impressed with her work so far and went ahead and found a renter on my own. We had agreed on first months rent as a finder's fee, but I ended up finding the tenant through my own listing. Am I legally obligated to pay her first months rent if she had nothing to do with the deal?

Thanks for the replies. I've always bought my primary homes with the intent to move after a few years and rent it out. This is the first time I've found what I want to be my forever home, so it changes the game!

@Eric Carr 

All of the above, every house is a different style and the age range of the homes is pretty wide. There are 1980s 3bd 2baths and then there are 1920s 5 bd 5 baths with everything in between. Its a great neighborhood and the general vibe is the area is improving. I figured as an REO the bank has had for years there would be more flexibility in price, but they are sticking to their guns. I want one of the older, bigger homes and it looks like its in pretty good shape. I think it will all come down to the inspection results and whether the bank will play ball after that.

@Eric Carr Thanks, that makes sense. The comps I got from the realtor for the neighborhood are all over the place. They range from mid 100k to over 400k. It's hard to narrow down more accurate comps because the homes are all very unique in this neighborhood. 

Hi BP,

I found a REO property that I can get a little under market value, but not the great price I was hoping for. I want to make this my primary home that I grow old in. My question is, should I treat this decision differently than I would an investment property? I won't have much equity intially. It would be unlikely to rent for a profit, but there is plenty of opportunity to update the house and add value that way. Again, I plan to live here forever so my initial thoughts are that it's not that big a deal to have little equity or ability to rent later. I'd love some feedback (to include don't let emotions drive your decision)!

I really appreciate all the replies! I know I have a different mindset as a small time investor where holding an asset that wasn't producing would make me want to sell. It's been enlightening to peek behind the curtain and see what the bank's thought process is.

Awesome Info all around. I believe its owned by Bank of Oklahoma (BOK). How does this scenario change if it's a big bank?

@Bob B. Thanks for the response. Would you mind giving an example of what you are looking for when setting your own terms?

I found the perfect home and was even more excited to see it had been REO for several years! I made an offer with my real estate agent and the bank countered by barely moving down. After a bit more research (small town Oklahoma, everyone knows everyone's business), the bank has refused multiple offers over the years near asking price. I'm curious if there are some common reasons why they would stick to their guns and hold onto a house for so long. Are there any strategies to use to help with negotiations? I've heard about offering to get the loan through the bank as an incentive for them to haggle but besides meeting them at asking price, that's about it.

@Lee VanDenBroeke you are spot on, it is (was) my primary residence.