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Inyo County, California Homes For Sale. Find a Wholesale Bank-Owned REO in Inyo County, California, CA: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. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property. Investors who are not clear on their exit financing are much slower to decide on their offer numbers and get beat out by more experienced buyers. With the currently low interest rates this is an optimum time to finance REO's for long term hold and cash flow. Including financing contingencies on an as is REO offer can be a deal killer. Many REO investors rely on the opinions of inexperienced buyers agents to formulate their offers. These agents are often desperate to make a sale and do not understand market value or cash flow analysis. Many novice investors make bad purchases by under estimating the repair costs on REO properties. Most REOs are vacant without the water or power turned on. It is hard to verify the functionality of plumbing and electrical systems without visual inspection by an expert. This step must be taken when evaluating REO deals. When creating an REO buying team it is important to have some type of contractor resources to assist with estimating repair costs. As a short-term real estate investor, you need a very easy-to-use tool that will quickly calculate cash flow, profit, a budget, and the investment return for a potential flip. You should also consider hiring a qualified professional to inspect an REO property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy. There are some credit issues that REO must allow for a certain time to pass before you can qualify for a FHA loan. They are follows: Two years from the date of discharge for a Bankruptcy and Three years from the date of Foreclosure. Some banks will not sign a counter offer on an REO until all terms are mutually agreed upon between the parties verbally. It is the best time to invest in REO or real estate which will give you a higher return when the market condition steadies or improves. HUD does not warrant the condition of its REO properties, but will give you the information it has about the condition of the property you’re interested in. You can use this information in formulating your bid. 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. It can be beneficial to track the listing history of and REO. Multiple failed escrows can be a great indicator that a bank is ready to give up the super wholesale deal to get the asset off its books. REO tip.....Be sure to have a clear picture of your hold time and what the actual hold cost is. Be sure to include market decline. An REO is a property that has been foreclosed on and has reverted back to the ownership of the bank or lender. Once the foreclosure has been initiated the bank or loan company legally has the right to sell the property regardless of whether the owners have moved out or not. The foreclosure auction is different than an REO property. |
