5 Tips For Getting Bank Owned REOs Cheap
June 18th, 2021
REO (bank-owned) houses are some of the best leads out there. In this article, you’ll learn 5 tips for getting REOs for cheap...
REO (or Real Estate Owned) is a term for a house that does not sell at foreclosure auction. As a result, the bank owns the house and has to sell it. Banks assign the house to an asset manager, who then partners with local real estate agents to list it on the MLS. Check out this article to learn more about the foreclosure process.
REOs are excellent leads for wholesalers and flippers, because banks will sell them for cheap to get them off their books. Here are 5 tips for getting bank owned REOs for pennies on the dollar.
Find a local real estate agent that lists REOs for different banks and lenders. You can find this person with a little research on Zillow.com, Redfin.com, or Realtor.com. Search for REO houses and then identify the listing agent. Often, an agent who has one REO listing will have a lot more, because they partner with banks to get all their REO listings. Once you find the agent, use Jerry Norton’s “double-dip technique” to make offers.
Double dipping is when you make an offer on an investment property, but instead of using a buyer’s agent to make the offer, you go directly to the listing agent and let them represent you as the buyer’s agent. This is called “dual agency” because the listing agent gets both commissions. And since the agent makes twice as much money, they’re more motivated to get your offer accepted.
Watch this YouTube video where Jerry Norton explains his double-dip technique in detail.
With REOs, there is no family moving out of the house or any emotion involved. Banks only care about the numbers and want to get REOs off their books. So, don’t be afraid to make low-ball offers. Also, the longer the house is on market the more open the bank will be to lower offers.
Bonus Tip: If you can justify a lower offer by explaining what needs to be fixed, and what the repair costs will be, it will help your case. Having a good repair estimate goes a long way. Click here for a free Rehab Estimator tool.
Banks are looking for drama-free closes. They want to see CASH, no inspection contingencies, and higher earnest money deposits. You can use these things to your advantage.
Watch this YouTube video where Jerry Norton shows you how to flip REOs and shares 5 more tips for finding them.
The easiest way to find REOs is with Jerry Norton’s Flipster software. If you haven’t heard of Flipster, it’s an all-in-one real estate software that helps you organize, streamline and automate all the steps to wholesaling and flipping houses. It also comes with millions of motivated seller leads across the country, including REO leads. To learn more and see it in action, CLICK HERE.