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Pinal County, Arizona Homes For Sale. Find a Wholesale Bank-Owned REO in Pinal County, Arizona, AZ:Featured Topic: REOMost REO purchases will be AS IS only, therefore the investor must inspect the property ahead of time and be aware of needed repairs and possible defects. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. REO properties in poor condition will generally require an all cash offer and be sold as is. The banks will seek to limit their liability in these situations. Positve cash flow is attained when the monthly collected rent minus expense exceeds the mortgage payment. It is important that REO buyers agents be highly available, aggressive and personable in order to develop relationships with REO listing agents. Even professional appraisers are struggling with determining property values as the REO inventory levels are skewing the current sales data. When flipping REOs investors must be careful about reselling to people that can't close quickly. Many of the poor condition and damage issues associated with REO homes is due to the homeower taking out their anger on the property. Many REO investors use a mix of handy men and general contractor to complete their repair jobs. It is important to understand the local economy in your area when considering cash flow over a longer period of time. Fannie Mae may make some repairs to REO homes to increase their marketability however, the buyer should be aware that other repairs may be needed. REO buyers should be aware of the following FHA loan qualification guideline: Bankruptcy's must be at least two years old, with perfect credit since discharge. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. If the bank won't budge and you receive an offer rejection, wait another 7 to 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. REO properties have properly changed hands. All liens against the property have been addressed. Back taxes have been paid. And the title is clear. In some cases, the bank may have done necessary repairs already. One of the best advantages of buying REO properties is most of the REO property is below market value. Another advantage is REO properties is very easy to find, banks have a number of them and will love to sell them. Many REO investors are doing their work by desktop, that is, on the computer and never really get out into the field. This is a sure way to make mistakes that will hurt later. Many of the successful REO buyers are leveraging relationships with REO listing agents and buying inventory that is not on the MLS. REO tip...REO homes usually have no electrical service on, you should check the panel and make sure that the wires are attatched and that the power meter is still there. Real estate brokers in turn with the REO manager within the bank to negotiate through an offer. Savings of 20% to 30% off the fair market value are absolutely possible, making an REO purchase the best way to buy a property for the first time home buyer or property investor. They give prospective buyers immediate access to the property for inspection |
