Weak housing market? I don't think so....

[bdahlg68]

Originally Posted by killer69

what are you going to do with 287,853 Sq FEET!!!???? lol

Better yet, where did you get 70MM??????

[Vegas69]

Originally Posted by John510

You can NOT buy a REO with a conventional loan. Cash Only

That's not true, I've sold a butt load of REO's over the past 5 years. You can even buy at the auctions with financing now. CASH is always king. BUT, the net to the bank in a short sale/reo is normally their primary concern. As long as the property is financable. Short sales are strickly a net game. They could care less if it's cash or financed. It's a debt negotiation and it's all about the bottom line to the lien holder's.

The deals almost always go cash and the lower end market can be investor heavy. I agree with that.

[John510]

Originally Posted by Vegas69

That's not true, I've sold a butt load of REO's over the past 5 years. You can even buy at the auctions with financing now. CASH is always king. BUT, the net to the bank in a short sale/reo is normally their primary concern. As long as the property is financable. Short sales are strickly a net game. They could care less if it's cash or financed. It's a debt negotiation and it's all about the bottom line to the lien holder's.

The deals almost always go cash and the lower end market can be investor heavy. I agree with that.

Here in the Bay Area every single REO I have seen has said "Cash offers only" on the MLS listing

[Vegas69]

It must be a very good market. One other variable is financing older property. Financing has become very difficult to obtain on properties with dificiencies. The oldest house I've sold this year was built in 1978 and they wouldn't finance it with 20% down unless it had a hot water heater. I always say, it went from a pinkie swear to a pain in the ass!

[GregWeld]

Originally Posted by killer69

what are you going to do with 287,853 Sq FEET!!!???? lol

Well -- er um.......


Long story - and wasn't trying to brag or spill in this thread... but "investing" is what I do... I'm retired - but I still have to invest.

So the company we just sold to EMC.... just leased two floors in this building for 10 years -- and then they (Starbucks) put it up for sale... so three of us are planning a run to buy it. This just came on the market like last week... so now I'm scrambling trying to put together the due diligence etc and I've been "appointed" (by the other two) to be the "lead" (in other words - do all the work) on this deal. We'll see -- we'll want to steal it to make it all work to our advantage but we think it would be a good buy - long term. Its brand spanking new - was mostly vacant until this lease deal - and will be a nice waterfront view building when they tear down the viaduct.

Thread jack over -- returning to the OP..... I was just trying to say that regardless of what you're trying to buy - large or small - you've got to have all your ducks in a row... it's ALL about the quality of the buyer now which is 180* from what it was (which got us in this mess).

[Blake Foster]

well if having their ducks in a row was a competition?? ( and lets be honest, it is ) you my friend would probably be in the lead at this point.

[ironworks]

Originally Posted by slow4dr

That's good to hear Jeff.

I don't want to be a debbie downer but until the banks approve the terms of the contract you really should keep looking and making offers. The wife and I also fell in love with a place that was a short sale(one loan). Almost 120 days after making the offer the bank came back with $30K over what the house was listed for. There wasn't a "Comp" within 10 miles that could substantiate it. We raised our offer $10K(knowing full well we would have a tough time getting an appraisal high enough for an FHA loan) and they declined. The house eventually went to foreclosure and sold for roughly what we had originally offered.


-J

I went through a similar deal, the bank countered back for 30k over asking. But what my agent told me is we should have agreed to there price because they will only be able to sell it for what it appraisal is. Nothing more.

There is nothing short about a short sale they take forever. Finally after 4 month of waiting the said house in now in escrow.

[JKnight]

Originally Posted by ironworks

I went through a similar deal, the bank countered back for 30k over asking. But what my agent told me is we should have agreed to there price because they will only be able to sell it for what it appraisal is. Nothing more.

There is nothing short about a short sale they take forever. Finally after 4 month of waiting the said house in now in escrow.

We're hoping (there's that word again) that the bank won't be so bold as to try that. In this case, there's a solid, recent comp that they are aware of (they used it to set their listing price), so they should know roughly where the BPO will come in. But there I go again, assuming that people think and act rationally.

Your agent is probably right though, in that situation I guess we would just accept and then let the appraisal set them straight on their counter offer.

[ironworks]

good info here

http://www.marketwatch.com/story/hou...9?pagenumber=2

[GregWeld]

Buy Low - Sell High... oldest way in the world to make money.

NOW is the time to be buying distressed assets... but you'll have to take a long term view of the world.

Interest rates are low -- prices are low -- you make money on the BUY side of a deal.

The idiots that have lost their asses all bought HIGH and sold low..... forced sellers have no bargaining power. BUYERS now have time on their side - if you have real assets - real cash - real credit.... you can get yourself on the right side of a deal.

A HOME is not a place to look to make money. It is your HOME. You have to live somewhere... whether you're paying rent or a mortgage... but it's a place to buy LOW and hope that over time (when they cart you off to the home) you might have an ASSET that will provide for you. This ASSET should not ever be used as your personal piggy bank. The GOAL should be to pay it off as fast as possible so that when you finally retire - you can live there with very low cost. Period. When it goes up - you don't re-fi into another 30 year mortgage when you're already 40 years old! Idiots do that. Try making that mortgage with your part time pay at McDonalds/Wal Mart and the paltry Social Security check you're going to get when you're 70 years old.