Good Deal Or Did We Leave Money On The Table?

I’m working with a buyer that has a verbal acceptance on a REO duplex in Blue Springs, MO.  After repairs I believe the buyer is getting about $25,000-$30,000 worth of instant equity.  Sure the duplex starts out empty, but that’s serious cake.  And it’s only a 4 year old building with brick exterior and solid, solid rental comps in the neighborhood. 

Problem is the REO holder accepted our first bid that was significantly under the asking price.  I think the buyer is getting a more than fair price and so do they.  But it makes you wonder, doesn’t it?  Was there money left on the table?  Of course our buyer will close quickly and is more than qualified.  So all that weighed in to the selling REO holder, I’m sure.  But still I can’t help but wonder. 

What are your thoughts?

11 Comments

Filed under Misc. Real Estate, Real Estate Investing

11 responses to “Good Deal Or Did We Leave Money On The Table?

  1. Chris,

    One can drive himself crazy wondering if they got the “best” deal. If your buyer got the price that works in their investment plan for the property, be glad and move on.

  2. You are 100% correct. But still… 😉

  3. Aaron

    I think you’re both right. On one hand, your buyer may not have gotten every last dollar out of the bank, but on the other, he/she left the door open for potential future deals with that bank. As long as the investment works with the current numbers and meets the buyer’s goal, I’d say it’s a good deal. Who knows, sparing the bank another couple thousand in losses here might mean you make another deal with them down the road…and make another $25k!

  4. It’s odd, you always, (or “I” always) wonder if I could have done better, lol. One reason I always negotiate, even if the accepted price is a great one, is because I don’t want to seller to have sellers remorse…

    Nick Cifonie
    http://www.rei-tv.com

  5. Thank you for your comments. I do believe they did get a good, very good deal. And the rents easily support my findings.

  6. The whole REO process can do this to us. First they invite us, as eight year olds, to the candy store. Then they tell us to ignore the price tags. We want the candy so badly, we’re torn between filling our bag and being told no on our offers.

    What a banker told me years ago sticks with me. He said, “Jeff, you’re acting on a false premise. You think we give a damn.”

    They have as much emotional involvement as the janitor does while waxing the bank’s floor at night.

  7. Jeff – LOL.

    I don’t mind being told “no” but I also don’t like wasting time on ridiculous offers. The offer probably was border line for acceptance in my opinion. But wouldn’t it be fun if we knew!

  8. Some BBQ ‘n beer with the banker a few times couldn’t hurt.

  9. Not that I’m impressed a lot, but this is a lot more than I expected for when I stumpled upon a link on Digg telling that the info is awesome. Thanks.

  10. Youre indeed right on this blog post!!!

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