Foreclosure How To Buy

Archive for the ‘REO's’ Category

In a down real estate market, finding foreclosed homes is easy. However to make your search easier, here is the list of the places where you can find foreclosures.

Auction Houses

Auction companies hold a inventory of properties, sometimes selling as much as 100 homes or more in just 1 day. Since the bidding is relatively quick and houses can be sold in a matter of seconds, prices of real estate can go over the board but you can find really good properties in their inventory.

Some Large Bank Websites

Most major banks maintain a list of foreclosed properties that they now own. Visit bank web sites and check out the foreclosed properties listing. More often then not this is a great method to find good solid investment property…just be warned…banks take FOREVER to move on a sale if your offering below what they feels is “Fair market value”.

Online foreclosure companies

There are a few companies online that specialize in selling foreclosed homes. A small,one-time membership fee is charged to anyone who wishes to access the list of foreclosed properties. Once you join you will normally have access to a list of property from across the nation. This is very helpful if you have a part of the country you prefer to invest in.

Buyers agents/Real Estate Agents

These agents are either maintaining personal web sites or deal directly with real estate companies that sell foreclosed properties. You can search them online. Major cities have real estate offices where you can inquire into possibility of acquiring foreclosures.

Real Estate Signs

You don’t need to look anywhere else because you can find foreclosure signs around your neighborhood. Homes with signs like foreclosure, bank repo, and bank-owned are for you to consider. These signs contain address and contact information of the agents you can visit or call. The best thing about considering homes with real estate signs is that you can actually check the condition of the house on-site. And with one phone call, you can arrange with the agent the date when you want to see the interior of the house.

Government Agencies

VA forclosed homes, Fannie Mae foreclosure homes, Housing Urban Development, Small Business Association, Department of the Treasury and other government agencies have a list of real estate properties for sale. Usually, when buying a house from these agencies, you are required to acquire the services of a real estate broker or personally submit an offer. Go to any of the government agencies web sites for more information.

Doc Schmyz has invested all over the US and Canada. He built a free free website shares Real estate investing information for all over the US. Find real estate information by state

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I talk to real estate investors all the time. Some are seasoned pros. Many are “wannabe” real estate investors who are just trying to get their feet wet. I can tell you from experience that there is one and only thing that separates the seasoned pros from the wannabe real estate investors. This one thing will surprise you because it’s not what you think.

It’s not a secret technique. It’s not a special recipe. It’s not a secret phone number. It’s not a list of private money names. It’s something else:

ACTION!

Successful real estate investors take action. They blaze ahead. They plow through. They move forward. They do something. Then they do it again. And again. And again. The wannabe real estate investors who are not successful - and who will never be successful (I’m sorry to say) are those who are waiting for something; perhaps they are still trying to get their paperwork in order or they are trying to figure out their brand or they are waiting for their business cards to be designed and printed. These are excuses! And believe me, I’m not the only one who says this! I know this to be true because it happened to me, until I bought my first property and took ACTION,

If you want to be successful as a real estate investor, go work on a deal right now. Don’t just do a bit and then stop. Start working and don’t stop until you have the deal. That’s it. That’s the secret. If you don’t have your paperwork in pristine order, that’s okay. It will come. When you need it, you’ll suddenly discover that you can do it quickly. (And, I’m also willing to wager that you’ll be surprised to discover you don’t need as much as you think you do).

So stop reading this article. And go take action right this instant! Just Do It!

For more information go to www.investingwiththestars.net/season3. Sign up for our FREE Webinar Series with Top Real Estate Experts sharing all their money making secrets!

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I would like to share something on how to buy REOs vs. Non-Performing Notes with You.

It’s a tough choice, I know.

Many people probably would ask themselves…”If I can buy real estate so cheap, why would I want to own bad paper and buy non performing notes?”

Cheap REOs are out there, I agree.

Yes, REOs are real property and not just an obligation of debt.

If REOs can be priced right and sold quickly, then why isn’t everyone dropping everything and just buying these REOs?

Buying REOs: 4 Risks Involved

1. Valuation Risk

You must be precise with the value of the home, as well as the interior condition. When you have a non-performing note, you have several options in ways to turn your note investment into positive cash flow. (example: getting your borrower to make payments).

It’s quite another when you have a vacant property, trying to squeeze profit from your REO. It can obviously be done, but you should know your area values and your interior condition much better when buying REOs than when you’re buying notes.

2. Purchase Risks Involved With REOs

If your sources aren’t nailed down, they can waste your time. In most cases you are dealing with brokers who are 2-5 people deep in a chain, and a fradulent attorney that claims they have mandate for someone else.

3. REOs-Deal Risks

A friend of mine was chasing after an REO deal that comprised of 16 REOs. He chased this deal for 2 months and at the end was only able to purchase one property. It turns out, all the other properties were listed for sale and were pulled because the agents got them into contract.

Or they were lost to a competitor since there were 3 brokers in between him and the seller. The one REO not pulled was the one that wasn’t already listed. The “loss ratio” on non-performing note pools - in other words the rate at which notes are pulled from a specific pool - aren’t as high by any means. (One day, ask me about the west coast pool that we lost!)

4. Buying REOs-Discount Risks

Discounts on REOs aren’t usually as good.

You can close on a note buying deal at a 30% discount and you will hear about pricing this low on a regular basis. REOs priced at this range are typically unheard of.

I’m not panning REOs by any means. Just jump in with your eyes open, and don’t get fooled by all the hype that you’re reading about the REO deals to be had right now.

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