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 are the best time to submit your low-ball offers. Along with the end of the fiscal year and before major holidays.
Buy in as-is-condition
Buy with cash or hard money
Close quickly (7-10 days)
Buy without contingencies
Escrow a large deposit (10%)
Banks are not emotional. Distressed homeowners who are in foreclosure are though and need to be handled delicately. Which can be very time-consuming and exhausting. Instead, dealing with the banks is an easy solution. The properties have already gone through the complete foreclosure process; most have clear titles and are vacant.
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, usually between 3 and 5 days.
Conduct all inspections for termites, insurance, appraisals, and repairs. Watch out for missed code enforcement and utility bill liens. Do not miss inspection deadlines. Banks do not like to hear excuses. Instead, they'll take the deal away from you and give it to another investor.
Banks don't like to pay closing costs. Don't take shortcuts; 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 judgments and liens, Robo signing, and mistakes in the 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 (you) has title insurance, former owners
can't seize the property back.
Foreclosures bank owned real estate and REOs are profitable investing strategies to build your investment business. The current real estate foreclosure market offers smart investors opportunities to snatch up these properties quickly. But How?
Sweet and simple.
Now, that may not be the way you take your coffee, but that is exactly how your foreclosures and bank owned real estate transactions take place. The secret ingredient that makes this strategy sweet and simple is the REO realtor.
When buying foreclosures bank-owned real estate, the REO realtor is a money-making machine, provide them with your buying criteria, 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.
Besides new and pocket listings, have your REO Realtor also send you a list from the MLS of foreclosures bank owned properties that have been on the market for over 90 days.
All won't be great deals because of the number 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.
The REO realtor does all the 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.
Yes and from government agencies. Fannie Mae, the Federal Housing Administration, Treasury Department, and Small Business Administration all sell foreclosures. However, most investors avoid these government agencies because of the restrictions and purchase procedures.
Bank websites. All the banks, both national, local, and credit unions, have foreclosure listings on their website. However, it is time consuming to sift through and visit multiple websites.
Online. Foreclosures are listed on Zillow. Most of the listings are with a Realtor. It's also time-consuming to search from Zillow, Trulia, Redfin, and Realtor.com. (to name the big ones). Especially when your REO Realtor can do it for you.
Fee-based online sites. Investors can find foreclosure properties instantly with zip codes. Cost-effective and saves time.
County public records and legal newspapers. Too much work.
Auction companies. Online auctions are convenient—register, search, due diligence, bid, and close. However, check for processing fees and other buyer costs.
It's easily accomplished by being prepared with the proper documents and have
hard money lined up and ready to go.
So, can you proof up? It's best to have a proof of funds letter (POF) for funding from your lender. The POF will need to be submitted along with the contract. Always use the same name on the proof of funds letter when you write the contract.
Look like a professional and submit a cash contract, with "proof of funds," a large deposit (10%), and 7-10 days until closing. Remember that the Bank can slow down the closing without any consequence, but you, the buyer, cannot.
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 are 4 legal maneuvers to work around the restrictions.
Foreclosures bank-owned real estate can be bought as single properties or in bulk REO packages. It's the easiest, fastest and most convenient way to purchase and build a portfolio overnight.