All Forum Posts by: Ted Klein

@Ann Watkins
You have really laid it out there. ; )  From what I am understanding, if I want to improve my chances, go hard on the EM, but be sure that I am comfortable with the inspection one is able to do. This seems like it is a bit of a risk. What are the chances of getting to do the walk through inspection? From what I understood, many properties were closed for a walk through. How does one go about getting access to the property?

So in Washington, the owner can stay for 21 days and a tenant can stay for 60 days rent free after the sale. If this is the case and they choose not to leave, does one have to start eviction proceedings on them?

Thanks for so much detail on your explanations, you really have provided some good information. It confirms that I have a lot to learn and that there are significant risks in buying a foreclosed property that only experience can help improve the "odds of winning without getting a money pit".

Thanks,

@Philip Marsh

Congrats on the awesome year. I'd like to hear the "Top 3's" that @Chris Mason has mentioned, I am sure we could all learn a lot from these.

@Russell Brazil @Kim Martin @Christopher Phillips @Ann Watkins

Thanks for all of the helpful information. Lot's of good advice here, this is what makes the BP community so helpful.

I definitely will be sure that my agent is registered on these sites beforehand and has the experience with REO's needed to negotiate the transaction so as not to overlook anything.

Thanks to all!!

@Ann Watkins

So you mentioned "you may be having to put down as much as 5% EM and if it's a multi-family or commercial listing having to agree to let the EM go hard" Does this apply to sfr's? I really like your idea of bringing the air compressor and generator to check the property, this obviously gives you a chance to check the mechanicals.

So is it common that the banks are just using the initial auction to raise their price closer to the FMV, or do homes actually sell at auction on the first time through at less than the principle balance? Many of these properties need extensive work and by driving the price higher, it makes it less of a deal for the investor.

@Christopher Phillips

So is it required to have a specialized REO agent / broker to make an offer or can any agent present the offer of it is on the mls?

@Kim Martin

Are you making offers at the listed price or any percentage below?

@Russell Brazil

That is what I thought. Is there any way to know when that might be other than just having my agent continually checking the auction and mls sites?

I have searched the forums and there are a number of threads on buying REO's but I didn't find the answers I was looking for, so...

There is a property that was on the auction that went back to the bank as an REO property. What are the steps now that would need to be taken to purchase this property from the bank? Does the bank sale the property for the outstanding balance or for FMV? Do I need to work with a REO broker to make an offer or will any agent be able to present my offer? Is there anything that would help in getting my offer accepted?
Dealing with foreclosures and REO properties is new to me so any help you could provide would be greatly appreciated.

Thanks, Ted

@Chris Dawson @Andrew Syrios

I'd be interested in your recommendations for GC's. If you could message me with their information it would be a great help.

Thanks, 

I do see that anything on MLS doesn't work. I have started attending the local Meetups hoping to network with others who can help. I have reached out to a couple of wholesalers, however, I have not yet found a commercial RE agent. Any contacts would be greatly appreciated.

Pat, this is exactly what I was looking for. I understand that there is no way of knowing up front, but I like your two stage approach. I had considered an up front expense at acquisition but the on going maintenance being a percentage of gross rents seemed like it is just another capex buffer. I will still estimate a monthly capex, however, the initial acquisition maintenance should cover you for awhile. I like the idea of setting funds aside but am looking for suggestions to better estimate the ongoing expenses. On my previous property there was rarely any monthly occurrences, just the occasional refrigerator or ac service call. I will try your method to see if anything pencils out. If anyone else has ideas or suggestions I'd like to hear what others are doing.

Thanks