About 5 years ago I was contacted by an AM company to list an REO property. This was during a time when there were not many REO properties on the market in my area. I was unfamiliar with how to market such a property as this was my 1st REO. I was asked to re-key the house and put it in the MLS to sell. I went out to take a look at the house and had no idea of what I was getting myself into. As I opened the front door the stench was so strong, it smelled like something or someone was dead in that house. I took only a few steps in then bolted out the front door. I stood on the front lawn with the grass up to my knees and looked at the house and asked myself. Do I really want to put my sign in the front yard of this house? After a few minutes of fresh air I covered my face and re-entered the house. The house was in bad shape. In my opinion there was no value in the house. The house was not livable. There where big holes in the floors from termite damage and a hole in the roof. I contacted the AM Manager and suggested they get it appraised right away and that there was probably no value in the house and it should be torn down. Here is where I leaned how to sell my 1st REO property. I contacted a builder in town who was buying properties and tearing down old homes and rebuilding affordable housing. He told me he was interested and wanted to buy it, he asked me to drop off a contract and he would sign it and get it back to me. In the mean time the property was appraised and there was no value in the house and the Bank would sell it for the value of the land. After waiting 2 weeks and several calls later to the builder he decided he was not going to purchase the property. I called the AM manage and asked if I could buy it for the value of the land (the appraisal) they said yes. They wanted it sold. I purchased the property for $9,000 and sold it in less than a week. I put a small ad in the newspaper that read “Investor Alert” Free 3 Bedroom 1 Bath house with the purchase of lot for $26,000 cash only. Open for inspection Monday 11:00 – 1:00PM and gave the address. I emailed invitations to my list of investors. That Monday about 12 investors showed up all at the same time. Before the open house was over I had sold the property. We wrote up the contract and closed before the end of that month. I purchased the property myself and sold it for a profit in less than 30 days. Oh by the way, I never did have to put my sign out and I can say I buy ugly houses.Donna Whitacre
Comments
Great story, and due to your commitment to REOPro I have added you as a Featured Member