Tips to make your bank say Yes to your REO offer

by admin

Posted on December 1, 2017

Reo properties for sale in arizona

Reo properties are nothing but those that have been reclaimed by the original lender i.e. the bank. In an attempt to provide unique opportunities for potential investors and to remove the failed mortgages from record, banks come up with this process and this platform can be pursued by all, including the novices. By this means, you are said to scale up your chance to profit and received properties below market value, having said that, investing in reo properties for sale in arizona also allows you to buy real estate free of title liens and other claims. In addition, it also helps you to diversify your investment portfolio and it all starts with making the right REO offer.

Investing in REO properties is highly fruitful, but there is nothing devastating when your offer gets rejected, but do not fret, there are few ways through which you can help your bid be chosen every time, all that you have to do for it is to follow these tips mentioned below.

  • Quick closing: While an REO property can be extremely beneficial to an investor, it is a huge drain on a bank, so they always wanted to give a quick closing. Seeing that banks always wanted to get rid of such money-sucking homes as quickly as possible, a quick close will entice the banks. No matter whether you are a novice or a seasoned pro, you should be well aware of the benefits that come with motivated sellers. As the name suggests they are motivated to sell and are typically more willing to negotiate terms if you can close their deal fast. Banks and REO properties are the same way. The average time frame to complete a deal is approximately 30 days, closing in less than 30 days should be no problem. You can consider offering to close in as less as five days or closing in less than 30 days should be no problem. While this may give the impression of an obscenely short amount of time, it is worth making a shocking bid to entice the bank, if, of course, you have the funds. Even though a quick sale won’t inevitably guarantee the sale, it will certainly give you an edge over the competition.
  • Miss out on an inspection: Well this may come as a surprise to you, just like a quick close, foregoing an inspection process is said to entice the banks. While an REO property can be exceptionally helpful to an investor, these properties on the other hand can be a huge draw off on a bank, so they will be an intention to sell sooner. The guidance to skip an inspection is not something that you hear often, but if you have found a property you know you can profit from then you can go for it and it is one of the best ways to entice the bank too. Having said that, always commit to memory that an inspection is a contingency, not a requirement. Banks will appreciate the less work involved on their end, but do your due diligence.   
  • Stand out from the rest: There are certain junctures where doing things in accordance with the rules can truly harm your chance of getting an offer acknowledged, particularly in the case of reo properties for sale in arizona. Some unique examples include: offering an obscure number, wholesale deals las vegas, splitting the fees, submitting a pre-approval letter are some of them.

Pay in cash: When it comes to REO property, cash is the king. A best offer letter with beneficial contingencies for the selling party is of no use, if you have no cash. Paying in cash is a sure fire way to stand out; all that you have to do is get a physical statement from a line of credit that attests you have the necessary funds to give to a bank selling an REO property and watch the world of difference it makes.

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