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Boulder County, Colorado Homes For Sale. Find a Wholesale Bank-Owned REO in Boulder County, Colorado, CO:Featured Topic: REOREO's are non performing assets that burden the books of banks as they are not set up to handle real estate. In a foreclosure situation, the amount owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale and the property instead reverts to the bank, thus becoming an REO, or Real Estate Owned property. Cash is preferred by the banks on REO offers because the escrow period is shorter. The bank will want to see proof of funds submitted with the offer. Positve cash flow is attained when the monthly collected rent minus expense exceeds the mortgage payment. REO agents must follow up diligently on offers made in their buyers behalf as many properties have a stack of offers submitted. A good REO purchase must be analyzed buy either current market value or long term cash flow ability. Low list price alone does not mean a great deal. If other buyers ask for 17 days on an REO, for example, to conduct inspections, and you ask for 10, you will be deemed the more serious buyer. Most successful trustee sale buyers are very experienced and have advanced research techniques. Many investors find the REO market to be a much safer environment. Some areas to pay attention to when inspecting an REO for water damage are around the bathrooms, water heater, solar equipment, water softening equipment, attic spaces and under the kitchen sink. Some of the most successful buy and hold investors repair their properties to high standard and rent at sightly below market. This allows them to find and retain renters who have an interest in keeping and maintaining their houses for a long 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. Some REO listing agents are so busy that they hire assistants to field calls. Many do not give out their private cell phone number, which can make communication difficult. Many prefer to use email. The bank may ask for you to submit a loan application so it can prequalify you for an REO, however, you are not obligated to obtain your loan from that bank. A proof of funds letter is frequently used in property short sale and REO purchases to provide explanation that a real estate investor or buyer has the ability to purchase the property they are making an offer on. Buying an REO is not the same as buying a home through the normal channels. In their haste to get the cheapest houses, many investors end up with undesirable REOs that need profit killing repairs. In search of a cheap hold REO, many buyers overlook the realities of the neighborhood which can really be costly when trying to rent. Renters have many choices these days and a rough area will require lower rents. REO tip...When inspecting an REO, check baseboards for discoloration and other evidence of standing water such as peeling floor tiles. Short Sale versus REO: Big difference! If you make an offer on a home that is potentially a short sale, you will work with the seller and the bank, with the bank (or banks) being ultimately the decision maker on your deal. The bank wants to sell the property for cash to invest in other ways. A bank will be looking for a quick sale, and as such may offer benefits and incentives to the prospective buyers. 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. |
