So you wanna sell REOs
Posted by BuyingFlorida on 08-21-2009
Views: 85
Markets got you down? Can’t wholesale? No money in flipping? Can’t sell your rehabs? What’s an investor to do these days? Well, the short answer is find a strategy that works in the current market. So if we are in a strong bull market, buy and flip those houses. If we are in a bear market, buy and hold them long term. Pretty simply right? In a perfect world, yes but not this one. After 12 year in Real Estate in Orlando and several years of wholesaling and rehabbing/flipping houses, the market started to turn in my market ) in October 2006. I saw the coming shift in the market and it wasn’t pretty. I needed to find a strategy that would work well in a market where every 5th house on the block had a foreclosure sign on it and new tenant every week (squatters! Egads!) but didn’t want to be restricted to just my area. REOs seemed logical. The formula is easy. Contact banks + Get list + find buyer – Sell list = Make money. Crack open the champagne! Well, not … (Read More) |
Why banks won't sell bulk REOs to you
Posted by BuyingFlorida on 08-21-2009
Views: 83
We often receive calls from buyers who are distressed because they have been trying to buy bulk REO packages but have thus far been unsuccessful. The conversations goes something like this: Buyer: I have a $100 million sitting in the bank and have been trying to buy a bulk REO purchase from the banks for a year. Can you help? Jonathan: Have you bought from banks before? Buyer: No. Jonathan: Do you have a pre-existing relationship with the bank? Buyer: No. Jonathan: Did the bank provide you with documentation of guidelines outlining the steps you must follow to be an approved buyer? Buyer: Yes. Jonathan: Did you satisfy their requirements and submit along with your POF (proof funds)? Buyer: No. It was too lengthy and I don’t have previous experience buying REOs which is what the bank wanted. Jonathan: So, you didn’t provide your corporate tax returns, social security numbers of principal offers, corporate tax ID number, bank statements, and proof of funds, first born and a sample of DNA? Buyer: … (Read More) |
Foreclosures and Short Sales
Posted by BuyingFlorida on 08-18-2009
Views: 135
Foreclosures and Short Sales There is one important difference between a foreclosure and a short sale. Because the original owner of a foreclosure has walked away from the property it is quite likely that he has taken everything moveable with him. Although there are occasional exceptions, you should expect that the home will be unfurnished. It is probably going to be missing some appliances, too, and there have been plenty of examples when air conditioners, thermostats and even the kitchen sink have disappeared! Another common problem with foreclosed properties is that they may need some renovation. Prior to the foreclosure process many vacation home owners put long term renters into their homes, leading to dirty or damaged carpets, scuffed paintwork and other types of damage. The bottom line is that if you buy a foreclosure you may well need to spend some money to bring it back into good condition, sometimes a few hundred dollars, but often many thousands of dollars. So when you are … (Read More) |
Foreclosures, bank-owned properties (REOs)
Posted by BuyingFlorida on 08-18-2009
Views: 85
Foreclosures, bank-owned properties (REOs) A foreclosure is a bank-owned (also called REO) property. The seller is now the lender who has taken possession of the property, and it is the lender who has listed the home for sale and set the asking price, etc. So if you are aware that a listing is bank-owned, you know that you are dealing with a relatively simple situation. Unfortunately by browsing through the public listing details of homes for sale you may not be aware that a home is a foreclosure. The description of the home may or may not say that it is bank-owned, as there is no requirement for the listing agent to make that distinction. So if there are one or more homes that interest you and that you are not sure if they are foreclosures, email me for more information. The full description of the property which brokers have access to will always make it clear if a home is bank-owned Making an offer for a foreclosure is quite straightforward. The 'as-is' form of contract is … (Read More) |
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