 |
 |
|
De Kalb County, Indiana Homes For Sale. Find a Wholesale Bank-Owned REO in De Kalb County, Indiana, IN:Featured Topic: REOREO's are non performing assets that burden the books of banks as they are not set up to handle real estate. Before making an offer on a REO, have your agent contact the the listing agent and ask the following questions: (1) Are there any inspection reports, (2) What work has the bank agreed to, (3) Is there a special "as is" form, (4) How long does it take the bank to accept an offer, and (5) How does your agent deliver the offer? Fannie Mae guidelines allow investors to buy up to 10 investment properties. This is an excellent opportunity to build a portfolio of cash flow REO houses. With the currently low interest rates this is an optimum time to finance REO's for long term hold and cash flow. REO buyers must prove themselves to be dependable and trustworthy to REO listing agents to gain an inside advantage and develop a long term business relationship. It is important for investors to follow the sales statistics in the area they are buying in so they can make confident and competent REO offers. Look at the last three months of comparable sales for that neighborhood to determine how much this REO is worth. Try to use only those homes that most closely match the REO regarding square footage, number of bedrooms, baths, amenities and condition. A vacant REO only depreciates in value and is a liability on a banks ledger sheet. REO investors must visually inspect houses for the structural integrity of major components such as the foundation, roof, walls, plumbing and electrical. The bank will not take responsibility for the investors mistakes. It is important to have the help of experienced professionals when determining market rents for purpose of cash flow analysis. If Fannie Mae knows of any hazards on REO properties they own or market, they disclose this information through their real estate listing agents. However, they may not have been informed by the previous owner of all hazards. They encourage you to have the property inspected by a professional before you buy. If an REO buyer has a Federal Tax Lien that is in a repayment agreement, you do not have to pay it off in full but you must be able to qualify with the monthly payment of the repayment agreement. State Tax Liens typically must be paid in full prior to closing your FHA loan on an REO. If you cannot close an REO by the predetermined closing date, the bank may charge you a penalty for each day you pass that date. A cash REO buyer does not need 30 or 45 days to close if the buyer is not obtaining a loan. Once the home inspection and other contingencies have been satisfied or released, closing can take place in as little as 3 to 7 days, providing the buyer is willing to sign a lead-based paint waiver. If you need a loan get your loan application not only pre-approval or pre-qualified but underwritten also. In their haste to get the cheapest houses, many investors end up with undesirable REOs that need profit killing repairs. 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...When comparing recent sales to your subject property, be sure to make adjustments for differences in square footage. A common misconception is that foreclosures and REOs are the same. Although they are similar they are in fact different with the REO being the direct result of a foreclosure option sale. An REO is a property that has been foreclosed on and has reverted back to the ownership of the bank or lender. 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 |
