All Forum Posts by: Renel St. Fleur

Yea Doug, I am doing something like that. I figure the banks might want to get rid of them since they havent sold and thats where I can come in at a low cash offer and hopefully get it for cheap. The only thing I am concerned with is having a listing agent who is a pain in the behind and causing the offer not to get accepted. I feel if it has been on the market for so long, as a listing agent, you should take what you can get on that deal and stop trying to hold out for a bigger piece of the pie.

All Im saying is that even the properties been on the market for a long time, the listing agent might make it hard to get it done.

On my previous post, I need answers on the Earnest money, but I have got that settled. Now me and my partner are ready to make offers on REOs. We trying to see if we can do it a different way so we can have a higher ratio of offers accepted. We are going after high end homes that has been on the market for 100+ days and making cash offers. Many investors Ive heard are just making lowball offers on many properties and I completely understand that it is a numbers game, which is why we are doing the same thing. However, if I was making a low ball offer, I would like to justify by presenting them with a CMA from our Realtor, giving them a cover letter showing how we came to that offer and a list of repairs that are needed.

I understand its more work to do, but I feel that maybe I can get my offers accepted more if I explained why I made a lowball offer,and I just wanted to if anyone has done anything similar to that and were they successful. My partner wants to make a lot of offers, but I wanna do them to at least show the bank that I did some homework on these homes.

What are your thought?

You are right on that part Hecotr. If they house has been on the market for that long, they would have to be the lowest in that area to sell fast. A lot of people I have talked to told me that many realtors or agents are just very very lazy and instead of trying to make money fast and quickly they rather hold out months at a time and get the whole pie. Thats what I have been told at times, I havent encountered many of them like that yet. Some people have given me advice on the earnest money deposit issue, so I know what I need to do, once I get my first deal, the deposit will never become an issue again.

Most of the offers are cash offers, with closing within 2 weeks and a shorter inspection period. I do have property owners that send me properties as well, but they all are going thru the short sale process which can take time and I am constantly going back and forth with the bank to accept my offer. However, thru the time being I feel I can get an REO and try to make a quick profit while the other deals are going thru the shortsale process, but I dont have the EMD to put up yet. Some of the properties I have targeted have been on the market for 400+ days and I feel that the bank is very motivated to let them go and easily find someone to flip it to at a discount.

One thing I would like to try is to bring in a buyer and if he or she is interested then they can put down the deposit and they can cut us a check and we can close from there. That is one option I can think of. I was hoping that I can find someone that is willing try that. I am working on getting these homes at .40 to .50 cents on the dollar. I have a feeling the bank will take it just trying to get around that deposit I have to make.

I hear you on that one Shannon. One of the investors who I spoke to said if you have a great relationship with that agent, you can get your way around it without putting no money down.

I was curious about this. If an REO property has been on the market for over a year, then I am going to assume that the banks are very motivated to get rid of this property.

My question is, would they still want and EMD on the property even though its been listed for 300+ days, or would they let me purchase it without the EMD. I know someone that has made an offer on million dollar REO property and he didnt put a single dollar in as a deposit. What other things can I use? Can I guarantee that I want to close within 2 weeks? Can I also consider paying all closing costs even the seller's closing cost, since I plan using transactional funding for my deals.

Has anyone tried this?