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Gordon County, Georgia Homes For Sale. Find a Wholesale Bank-Owned REO in Gordon County, Georgia, GA:
Featured Topic: REOMuch of the REO inventory has been vacant for a long period of time and need repairs making great fixer upper deals abundant. 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. Monthly cash flow attained by purchasing and holding REO's can produce a substantial monthly income. 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. 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. When flipping REOs investors must be careful about reselling to people that can't close quickly. A vacant REO only depreciates in value and is a liability on a banks ledger sheet. Many experienced investors make their inspection of an REO by looking through the windows and budgeting for the rooms they cannot see. This is not the most desirable method but will suffice when interior access is not possible. Savvy investors take care to preselect good neigborhoods, location and configurations that would be desirable for family living when looking for REO cashflow opportunities. 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. If you are looking to purchase an REO and are unsure what your credit report is like, you may want to begin by getting a free credit report that you can view immediately online. To attract buyer's agents, many banks offer a larger percentage of the commission to the buyer's agent while discounting the REO listing agent's commission. A faster cash closing puts money into the REO lender's pocket sooner. There are also fewer things that can go wrong in a short escrow period. An REO house becomes the property of the lender (usually a bank), and needs to be sold as soon as possible. Buying an REO property is not a simple and straightforward as some imagine. Banks may verbally accept your offer, while trying to find a better offer. In search of a rental portfolio in a down market, many savvy buyers will enlist he services of and REO expert who knows the area, listing agents and inventory well. That way they can make multiple purchases and pick up the right inventory. The REO expert will be compensated with a wholesaling fee. 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. REO Part II: Banks have departments that must maintain these homes, keep the lights on and keep the taxes paid. Banks cannot legally sell real estate directly to the public, so they enlist the services of a real estate broker to list the home for sale. Real estate brokers in turn with the REO manager within the bank to negotiate through an offer. There are some downsides to REOs. While REOs are sometimes touted as real bargains, the lenders know very well what they're worth and will drive a hard bargain to ensure they are getting as much money as possible from the sale. |
