 |
 |
|
Redwood Shores Homes For Sale. Find a Wholesale Bank-Owned REO in Redwood Shores, 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. Banks do not want to see a lot of proprietary disclosures with REOs; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14) and if there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. Many investors use a private hard money lender to finance their cash flow REO purchases. Positve cash flow is attained when the monthly collected rent minus expense exceeds the mortgage payment. Many novice investors make offers that get accepted by the bank but they rescind their offer when they realize that they did not do enough homework on the property and major repairs are needed. An educated, well researched offer can be profitable in almost any market but especially so in a down market with a glut of REO inventory. Investor sshould exercise caution and avoid overestimating the value of an REO property. REO vs Short Sale. A home owner in foreclosure may be working on a short sale, loan mod and other options simultaneously to delay their foreclosure sale date. An REO property belongs to the bank and is available for purchase the day it is listed. It is critical that investors not be discouraged by Real Estate agents who speak negatively about creative REO buying. Many times they are just not familiar with the subject. When calculating monthly cash flow be sure to include tax, insurance, management, municipal fees and vacancy costs. Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired their properties through foreclosure, deed in lieu of foreclosure, or forfeiture. You do not have to use Fannie Mae's selected title, settlement, or escrow companies on an REO purchase. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract. Many banks are moving away from paying typical closing costs for the buyer on REO. Some fees such as transfer taxes, county and state fees, are borne by the buyer and not the bank. Banks do not often pay for pest reports, repairs or home warranty plans. 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. Each lender has its own procedure for the sale of REO homes. So once you have identified a property, check out the procedure of the bank which is selling the REO property. 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. A turn key REO rental house is one that is ready completely ready for a long term hold buyer to purchase. This house has been pre selected, negotiated, repaired, rented and can provide instant monthly cash flow as well as long term appreciation. REO: this is an acronym for Real Estate Owned, and this used to be called the bank department that managed the properties the bank had reacquired through a foreclosure process What are the benefits of buying an REO property that has been foreclosed on and what are the reasons they failed to find a buyer? 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. They remove all liens and back taxes. They allow negotiation on all rehab costs, interest, closing points and loan amounts. The purchase is described as 100% risk free and they may allow a less than normal down payment. The bank will also evict the tenants if necessary. So you can see the benefits of of buying REO properties. In today's housing market the glut of foreclosures has created a rare investment opportunity for those who know what they are doing. |
