OfflineGood Evening DG Members,
I went to look at an REO that had potential this past weekend. The REO is in a nice affluent area and doing a little research I found that the REO had sold for $175k last year. The home was taken over by the bank and the bank did not have the electric on in the home so the sump pump in the basement did not work. Thus, there was 4 feet of water in the basement and mold everywhere. This can be a messy and costly clean-up. They listed the home around $95k, I believe the home to be worth (ARV) around $140k when cleaned and updated.
However, I noticed the home also needed a new roof ($15k) and new replacement windows (around $7k). Thus, I offered a respectible $29,900 for the home. The realtor took two days to get back to me and stated,"well we have a few more offers on the table". The bank wants your "Highest and Best offer". We began to talk a little more and I stated I wanted to save everyone time. Thus what did he think it would take to get the home. He stated probably around $75k. (Ouch!) Based on the clean-up, fix-up , repairs, etc there was very little profit margin. I figured there are too many other opportunities out there to tie up too much time and too much money on one proeprty. Thus, I will keep this home on my radar, but expand my search to other proeprties.
The take away that I learned from this is do not offer to high of a price on an REO property and do not get emotional about having to have a property. Another and another and another deal will soon be coming your way! Good luck with all your deals. Believe and Achieve! 
Indiana-Joe
Thanks,I'm going to look into it.You've given me some good info that I never considered.Thanks a bunch!
Good luck on this deal. As long as you find out as much information as you can you will be able to make a better more informed decision. The condo assosociation bylaws will tell you alot along with the meeting minutes with the association. A former co-worker of mine lived in a condo that had about 10 buildings in the developement. I remember he told me they all had to share in the cost of a roof for 3 buildings even though his building wasn't getting the roof. Good luck and I hope it works out for you. Believe and Achieve!
- Joe
Hi There:
How do you usually work your list of properties?
Is it by a certain number a day, or when you decide
to go back to something that is on your radar, do you
have a particular kind of system?
Thanx!
Be The Colors of the Past
Yet Live for the Present; and,
Strive for Tomorrow, Today!
Regards,
Anita
**Dedicated to building Residual Income
providing Money-for-Life literally. I watch it
grow & know I can pass it on to my future generations...