How Do You Effectively Bid On Bank Owned Properties (Reos)?
One of the biggest secrets to successfully bidding on REOs, as a savvy real estate investor, is having a mechanism that provides for the ability to submit a lot of offers and an understanding of the process. I believe the process follows 4 Stages. In a normal week, we’ll submit more than 600 offers on bank owned properties (Stage 1) in a given high-inventory area. Obviously a system is needed to reach and maintain this level of activity. Note: we tried to do this manually at the beginning and it was a bad experience. Also note, that if original offers are based upon a percentage of list price, we’ve noticed that each area seems to differ on what that percentage is. Of course most of our offers are too low to go anywhere. However, that does not mean that we learn nothing from the feedback. The first information we learn is which properties are under contract (pending) and which properties have much higher offers than ours (retail buyers). This may include as much as 90 percent of our “i
