Friday, September 5, 2008

Bank REOs

With the end of the year approaching, my new angle is to work the bank REOs in addition to working with individual sellers. Surprisingly, the banks have been more than helpful. Personally, I was a little apprehensive working with the banks as I've heard they are hard to deal with and have been unresponsive to most people. I don't know if it's just me and my personality, but the banks have been pretty cool to deal with. Maybe my studies with Gitomer had something to do with it. Go figure!

So, today I checked out another bank REO located in one of the parks I work with. Guess what? As soon as I drove up to the house, I could tell the home had some issues. I didn't even have to set foot in the house. What tipped me off? Check this out:

Hmmmm....What's wrong with this picture? Can somebody say roof damage? And, let's not forget about those lovely wood panels with the moisture issues. Can you see the wood breaking up? Here's a closer look:

Ok, so is it just the outside with issues? Here's what I found when I went inside:

Water damaged wall


Water damage ceiling

Door entryway water damage

Clearly, the house had some issues. As soon as I walked into the house, I could smell the mold. Surprisingly, the park manager didn't think it was that bad...until I came and pointed out these issues. But, what really confirmed my feeling about the house was not the house itself but the neighbor who lived next door.

The neighbor was a friend of the prior owners. Let's just say people talk...And, they talk a lot. Most people want to talk, talk, talk. But, I've found out that if you listen to what people say, you'll learn a heck of a lot especially in this business.

I start talking to the neighbor and asked her a couple of questions about the house. The park manager was with me and really didn't think the neighbor really had that much insight into the situation. Little did she know what the neighbor knew. The neighbor told me about all the water and moisture issues with the house. How did she know? Well, she was the prior owner's neighbor and friend, and regularly came to the house to visit. Whenever people have problems, they talk about them to their friends and people they know. Pretty logical stuff.

So, the neighbor goes on about the house and tells me how the house was always leaking, moisture was getting into the walls, how one of the water pipes burst, how the prior owners would complain water kept getting into the house, etc, etc. Wow, the list goes on and on! Then she goes on to tell me the a/c unit outside is gone - someone stole it. And, there's always been a major leak in the bathroom. Plus, the commode in one of the bathrooms doesen't work anymore. Honestly, this is very important information to know.

What I deduced from the situation was that the roof probably has not been sealed for quite some time. Somehow moisture has made its way into the house and will continue until the problem has been found. However, it's already been to the point where mold is growing and moisture has seeped into the walls. The insulation is going to need to be torn out and replaced with new insulation. Probably the roof will need to be sealed again. All of the walls with the moisture will need to be replaced. Plus, the wood paneling outside will also need to be replaced. Clearly, this house is a much bigger project than what I'm looking for. It will take more time and work to get the home ready and safely habitable. So, I decided to pass.

Lesson learned. I have learned to be humble and listen more to people when it comes to this business. Most people want to talk and think they know what they are doing even though they don't - a big mistake. I learned the hard way. Let's just say my mistakes in the past have cost me a lot of time and lot of money. Now, I have learned to listen when it comes to matters of the unknown.

1 comment:

Anonymous said...

Very interesting and informative. Like your blog. Will be back