Can't beat donated inventory!

Hey guys,I am considering a duplex in Texas and currently have one pre-qualification letter for a conventional loan with 25% down from one lender recommended by realtor.I am not too happy with a 4.25% rate and points (esp. if we have to put down 25% and not 20%).

Also, the big six, who hold most of the NPN going through foreclosure have a watchful eye on their standing REO inventory and take care not to create an excess in their inventory by slowing dripping the foreclosures into the market place and turning them into REO at their pace, not the desired pace of street level investors.

If so, it won't qualify for conventional financing.

As far as residential goes, what I'm seeing right now is depleted inventory.

What's keeping me up at night is that there is ZERO inventory in my hood: the San Francisco Bay Area, right now!

Thanks guys, i created another thread with the details on my deal.http://www.biggerpockets.com/forums/311/topics/83673-please-review-my-deal-analysis---henderson-las-vegasIn the past, I've always gotten 10-15% below market, but right now, I'm buying at market because of the low inventory and raising prices.

I'm currently under contract and there are several things I don't like about the place, but only grab it because inventory is hard to come by.

If there is a bigger player, in compliance, maybe I can get "in", to some degree.If not, I may have to consider more conventional routes to investing.

However, with inventories this low you can always push value a little bit.