Let's look at the situation where you are looking at a REO listed at 25k and they have just come down from 29k. The bank most likely did not really look at it because it isn't worth that much. The house is in bad condition and would have to be gutted to rehab; the only good part of the house is the structure. You don't want to rehab it yourself but you would like to make a low ball offer on it to flip it.
You would not be interested otherwise, but you don't want to let this property go just yet. The interesting part is a realtor who listed it didn't put a sign in the yard. No one knows the house is even available. Besides, sales comparables are 45-106k after rehab.
You are wondering why there is no sign in the yard? For one of two reasons. One could be simply that the realtor is lazy.
Second reason is if a realtor knows what he is doing, it means he has investors or friends he is holding the house for. They may hope no one notices the property and they will get a sure deal selling it to somebody who buys from them all the time and closes all the time. Sometimes they need it to get to a certain price range in order for their buyer to pick it up.
This happens all the time and frankly speaking, that is just business based on good relationships. You eventually want to be that kind of person. This kind of relationships is the reason why one has a success in real estate business. They are not hard to build but it does take some skill.
About the Author:
The author, Jesse Davis is an expert wholesaler in the Jackson Mississippi Real estate Market. Go here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
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