With foreclosures bank owned properties, we're beating the banks and you can too.
Banks are highly motivated sellers and are only interested in the bottom line. It's all about how fast they can move their inventory. Right before their end-of-month evaluations is the best time to submit your low ball offers. Along with end of fiscal year and before major holidays.
Get the deal every time ...
buy in as-is-condition
buy with cash
close quickly (7-10 days)
buy without contingencies
escrow a large deposit (10%)
Most lenders do not repair foreclosures bank owned properties and the best deals are on the ones with the problems. So make certain to complete all due diligence during the inspection period which is usually between 5 and 10 days.
Conduct all inspections for termites, insurance, appraisals, and repairs. Watch out for missed code enforcement and utility bill liens. Banks and Mortgage companies do not like to hear excuses, instead they'll take the deal away from you and give it to another investor.
Don't take short cuts always insist on Title insurance even if you have to pay for it yourself. It's one of the cheapest forms of asset protection and it gives peace of mind. Because of issues like undiscovered judgements and liens, robo signing, and mistakes in documentation the property's title could be clouded which would create uncertainty about the buyer's rights of ownership. As long as the new owner has title insurance, the former owner can't seize the property back.
When buying foreclosures bank owned real estate, the REO realtor is your golden goose, a money making machine, provide them with the proper information, motivate and set them on fire, I mean automatic, and let them do what they do best; find and close deals. Plus, the bank pays their commission.
Have your REO Realtor send you a list from the MLS of foreclosures
bank owned properties that have been on the market for over 120 days and need rehabbed.
All won't be great deals because of the amount of problems and repairs but some will produce a kickin' profit margin.
Reo realtors have an "in"
with the bank. The REO Realtor will also have continuous listings from these same banks
in the future, so once you have established yourself as a powerful real
estate investor, you'll get the heads up on all foreclosures bank owned
properties before they officially hit the market.
Developing a relationship with a REO Realtor is easily accomplished by being prepared with the proper documents. So, can you proof up? It's best to have a proof of funds letter (POF) or a pre-approval letter for funding from your lender. The POF will need to be submitted along with the contract. Always, use the same name that appears on the proof of funds letter when you write the contract.
Funding the deal with cash. Have different types of
funding options lined up and ready to go. To ensure your success when buying foreclosures bank owned properties,
look like a pro and submit a cash contract that has a large deposit
(10%) and 7 days til closing. Remember that the Bank may slow down the
closing without any ramification but you, the buyer cannot.
The REO realtor then goes to work tying up all the loose ends and brings the bank, the investor, the title company, and the real estate deal together for a successful close.
On the day of closing, the investor
doesn't need to be present. You only have to supply a signature and
check or financing. This can be done through overnight mail, with
wire transfers and online notary services.
has been created for the property, in most cases the investor doesn’t
need to show-up at the closing because the trustee signs all the
No matter what your present location, buying bank owned properties through a Reo Realtor is an easy and sweet real estate investing strategy that you can start now. A great example of this is the investor who didn't have a serious illness but was in the hospital. However, that didn't stop her from investing, she bought and sold right from her hospital bed with the help of a Reo Realtor.
PRO TIP: Realtors, banks and mortgage companies use non assignable contracts. Sometimes this can be an obstacle for investors who are flipping or wholesaling the property. Here's 4 legal maneuvers to work around the restrictions.
Foreclosures bank owned real estate can be bought as single properties or in bulk REO packages and it's the easiest, fastest, and most convenient way to purchase and build a portfolio overnight.