Game Theorists Needed!
Has anyone had experience in a “blind bid” foreclosure offer? The bank wants “X” amount. I can go 10-15% above X and still make a great profit as a rental carrying a mortgage. Of course, I could offer LESS than X and make an even bigger profit, but I will be competing against other offers…
Has anyone had experience in a “blind bid” foreclosure offer? The bank wants “X” amount. I can go 10-15% above X and still make a great profit as a rental carrying a mortgage. Of course, I could offer LESS than X and make an even bigger profit, but I will be competing against other offers including all cash offers. I can only put down 10%.
My dilemma, do people ever offer MORE than the bank’s asking price? I am wondering if I should just offer the asking price, assuming that everyone else will be offering LESS than the asking pricek but I may be wrong in this assumption. Aside from being a great financial opportunity, the property is extremely close to my residence, so there is intangible value in that to me. Any thoughts people have would be appreciated.
Yes, you will need to put more than 10% down as no MI company is giving insurance for investment properties. Also the rates for investment properties over 70% are much higher so just keep that in mind when you are determining the expenses.
Good Luck bidding
Just wanted to mention that only putting down 10% on an investment property sounds like a tough sell to a loan officer right now. Have you confirmed that you will be able to get a mortgage on the property before you place this bid? Typically contracts on foreclosures offer fewer contingencies than regular homes. You might lose your deposit if you go to contract and can’t get 90% financing.