I’m so glad September is here. Even though it’s back to school time, August wasn’t nearly as productive as I’d hoped. Since we pulled the plug on our REO offer, we had to start all over looking for more deals. And we also got a little off track due to another family funeral. 
The fun never ends around here!
We did put in another offer on an REO yesterday. It’s a cute little 2 bed/1.5 bath house that needs (from what we can tell) mostly cosmetic rehab. The septic system inspection has to be done, though, to see if that needs replacing. Anyway, the house has been on the market over a year, I think partly because the MLS listing photo (only one) is just awful. The picture doesn’t do the house justice at all. We offered about $80k below asking price (it’s listed at full market value, which is ridiculous). The bank I’m sure will reject the offer, but let’s hope they counter with something reasonable. I hope to hear by mid-week on the status of that offer.
I’m still getting calls from our mailing (we still have one more batch to send). The one guy keeps calling and calling. It’s an inherited house and he owns it with his siblings. The house was listed since June at over market value (listed at $249k, it’s worth about $200k, maybe). I told him that we’d be willing to come see the house, but we couldn’t pay close to asking. Well, the listing expired 8/31 so he keeps calling before they list the house with another agent. From the MLS photos, the house looks in nice condition, just outdated. I did also ask him if they’d be interested in owner financing, and they don’t want that, they want the cash. What would you do? I think he’s motivated, but if they still want close to asking, it’s not a deal, ya know?
Oh, and Steph over at flipthiswholesaler.net instituted a do-over for her 30 day challenge. Thank goodness cuz August was a sucky month for REI.
Happy Investing!
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Tags: bank owned houses, flipping houses, flipping real estate, invest in real estate, REO
LOL Steph…I totally needed the 30 day challenge DO OVER too!
We’re so bad, huh?
Well what did the guy say when you told him that you won’t be paying retail for it? If he was ok with that, I’d make the appointment to see the property.
Then you can make him 2 or 3 offers. All cash, Some cash and Some Owner Financing and All Owner Financing. He’ll ask you to explain the owner financing when he sees that will be the highest priced offer, know what I mean?
I know…I totally needed a do-over, too!
I did ask the guy about owner financing, he wasn’t interested. He didn’t seem interested in any offer under $200k (which is the current market value) so I told him he was best to list with the new Agent and maybe he can get a retail offer. I’ll follow-up with him in a couple months to see what happens. Oh well, maybe he’ll be more willing to talk my language if they don’t sell again after a few (more) months on the MLS!
Steph