3/12/2009
The bank sent over the closing docs yesterday afternoon, but we are still missing their title commitment (which my title company needs). Also, the buyers want to have their attorney review all of the paperwork, but he thought the deal wasn't closing until Friday, so we are waiting on him to approve everything. I went in and signed all of my docs yesterday, and hopefully the buyers are going to go in this morning to sign their docs so we can get the wire sent out today. I should be getting a frantic phone call or email any minute now from the bank's title company asking where the wire is. I will just go ahead and ignore them, much like they have been ignoring me all week. That is my very favorite thing to do, especially when I am out of contract with the bank and it is their title company's fault. And especially when they have been blowing off my calls and emails all week. Hehe. Meanwhile, the listing agent has NO CLUE what is going on, which makes it even more fun. Good times.
No bites yet on my offers. A lot of multiple offer situations, though. Everybody and their Grandma is going after REOs, so there's quite a bit of competition. Also, I'm not sure if I mentioned this, but there's been a noticeable decrease in the amount of REOs on the market lately. Not sure if it's because of the moratorium or what, but there's definitely a lot less to choose from. I check the amount of lis pendens filed in my county every month, and that has pretty much stayed the same (roughly 2000/month). I've heard from a few different sources (REO agents) that there is a huge wave of REOs headed our way. I guess I'll have to wait and see.
That's all I've got for today. Busy day ahead of me..
Adios!
Thursday, March 12, 2009
Closing Today? Maybe. Part 2.
Subscribe to:
Post Comments (Atom)
14 comments:
Wow. I heard a lot of people going after REOs - crazy! I like your blog - it's cool. I used to wholesale myself. Looking forward to reading more!
Steph, is your recent compettion all local investors?
I wonder if there are fewer REOs because banks have given them to the national auction companies?
Anonymous- A lot of the competition is other wholesalers. Not sure about the rest.
Jo- That could be. I think the moratorium has a lot to do with it too.
Steph,
I have chatted with a few REO brokers (even mine) and they have said the same thing about the wave of properties coming. I spoke to one broker that he is getting the leads about 45 days in advance and shopping it around before it hits the MLS. What he also does is list just below market value and the day it hits it will push the price over what the bank wants. Kind of a Auction method I suppose.
Keep up the good work.
Hi Steph,
I know what you mean... Every day I hear "I need you highest and best" Your in a multi bid... I have been going after stuff that just hits the market. I just got an accepted property that was listed at $23k I offered 14.5k the bank came back at 20k and we settled at $16.5k. It was listed for 6 days... I should have it sold tomorrow for $19.5k... So not a grand slam but there is so much competition here that I have to be jonny on the spot, or there would be a lot of bare months... Plus 4 deals like this and its not too bad or a month:)
Congrats on the deal Dustin. Those smaller ones add up pretty quickly..
Good deals don't last 6 days here- they are gone in hours. When I first started going after REOs a little over a year ago, it was nowhere near as competitive as it is now.
Still plenty to go around, though.
Keep up the good work.
Steph :)
I found this article and it talks about competition. I thought you would find it intreasting, since its near your area.
http://www.dailybusinessreview.com/Web_Blog_Stories/2009/Mar/Cash-backed_buyers.html
The REO Scene has always been a bloody battle of competition between flippers & wholesalers out where I am... As soon as an REO hits the market, you have a matter of days to get your offer in, and they almost always sell for asking, or within a couple k of asking.
This is why I guess I've been so intrigued that you are able to do this and make money out where you are. Maybe there are just more REI pro's in my area?
-C
Hi Carl,
It's the same here- there's a feeding frenzy when something good hits the mls or when there is a big price drop. All the wholesalers have automatic email updates sent to their phones, so everybody is competing for the same houses at the same time.
I let everyone else fight over the new and recently reduced stuff, and I make my offers on the houses that have been sitting awhile.
Steph
Hello Steph,
I have a question about your most recent closing. You stated that you signed everything the day before, and then your buyers went in and signed. Doesn't everyone have to sign at the same time. I think of double closings as you and your buyer sign, then you walk in the next room and close with the bank? Is this wrong? I'm just getting going, so if you could give me a play by play of how title/closings work that would be great...
Luv your blog.
Travis
Hi Travis,
Usually we come in at the same time and sign everything, but in this particular instance, the buyers were not able to come in until Friday. So, I just went in early and pre-signed all of my documents just to get it over with. I actually had to go back Friday and re-sign new documents for the 2nd transaction, because the buyer's attorney was complaining about the closing costs, so they had to move some of the costs over to my side.
Usually, though, both parties go in at the same time, and everything is done all at once.
Hope that makes sense.
Steph
Thanks Steph,
That did help, and I do have one more question. How do you do a double closing with out of state buyers? Wouldn't that mess up closing at the same time?
Thanks again,
Travis...
Hi Travis,
It would be the same, you would just have to have the buyers FedEx all the docs, as well as wire the money to your title company.
If you have a good title company who knows what they are doing, they will handle all of the details so you don't have to worry about it.
Steph
Post a Comment