If you are interested in buying REO's, another term for bank owned foreclosures then you need to read this blog very carefully. There is one key formula for doing this right.
What is the formula? You must buy correctly! I never pay more than 50 cents on the dollar for a bank foreclosure! So that means my first offer is about 33 cents on the dollar!!! Now many comment, "A bank will never take that offer!" It does not matter! Some will!
If you make an offer to a bank that has a ton of inventory and they are coming to the end of their fiscal year and you make a low ball offer many times they accept it!!!! Why? Very simply put they lose more money by holding on to properties for a long time than by taking a cheaper price and being done with it. Now, you add on top of that the Feds stop lending to banks who have too many bad debt houses on the books and then you add to that the number of foreclosures you have in the market today.... You have low hanging fruit ripe for your taking!
Get out there and make those offers! Remember the worst a bank can say is no! Until next time...
Peter Olsen
Rent To Own Homes, LLC
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