Are You Patient Enough to Buy an REO Bank Foreclosure? (Part 4 of 4)

Buyers of REO bank foreclosures must be Qualified, Prepared, Knowledgeable and Patient.

• Qualified: Your financing is lined up; you know your price range and can access your funds quickly.
• Prepared: You know what kind of property you are looking for; you’ve narrowed your search to two or three neighborhoods and understand the differences within each neighborhood.
• Knowledgeable: You will know a great deal when you see it because you’ve researched the history of actual selling prices and are following new listings and price changes daily.

Now you need PATIENCE. My buyer [see part one] followed the market for over a year before he found what he was looking for. And when he did, he bought it in less than 10 hours.

My buyer was looking for a single family home as a rental property investment. And he was watching the REO bank foreclosures in his neighborhoods and waiting for a bank to make a dramatic price cut – below current market price – that would give him a positive cash flow and instant equity.

Why would a bank sell its property below current market price? Because they want to unload the property… just get rid of it.

With all the foreclosures on their books these days, banks want to sell them as quickly as possible. Typically, a bank will test the market just like any other seller by competitively pricing their property at, or slightly below, current market price. But if they can’t get the price they’re looking for in 30-60 days, they are often willing to make dramatic price cuts to get it off their books.

The Loss Mitigation Departments of banks are regional and are dealing with thousands of foreclosures… they’re swamped. They are trying to reduce their bank’s losses as much as possible, but they are also under pressure to clean up their books. In the end, it just gets down to deadlines and numbers for them.

In my buyer’s case: the bank had actually rejected a higher offer by another buyer before they decided to make their big price cut. There really is no way to know what banks are thinking… you just have to watch and wait patiently for the deal you are looking for.

If you have what it takes to buy an REO bank foreclosure, i.e. you are Qualified, Prepared, Knowledgeable, and Patient, then CALL ME (1-888-494-8654) – I’ll help you find what you are looking for at a great price.

The deals are out there; don’t miss out on this great buying opportunity.