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Clark County, Kentucky Homes For Sale. Find a Wholesale Bank-Owned REO in Clark County, Kentucky, KY:
Featured Topic: REOReal estate investors are able to buy lender owned REO homes in Southern California for fifty cents on the dollar or better and rent them out for a positive cash flow. Your offer in an REO situation should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct. 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. Many investors make the mistake of waiting for the television to tell them that the bottom of the real estate market is here while the REO market is providing cash flow opportunities right now. REO listing agents are often skeptical of an investor that has taken a weekend seminar and makes uneducated offers. When offering on long term cash flow REO's, it is important that investors consider the long term viability of the neighborhood as it relates to local economy, employment and desireability Putting and or assignee on a REO purchase contract shows a weak buyer and makes the bank think the buyer isn't sure where their funds are coming from. REO VS SHORT SALE. A investor who has a short sale agreement with home owner has no competition but must convince the bank of the homes value. An REO investor must compete with other buyers who may have different perceptions of the properties worth. A novice agent who is eager to succeed can be trained by a savvy investor to work in the REO market. It is important to understand the standard amenities of homes in an area before determining rehab costs on a cash flow rental home. 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. REO buyers should be aware of the following FHA loan qualification guideline: Bankruptcy's must be at least two years old, with perfect credit since discharge. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. You will have greater negotiating power if you make offers on homes that have been on the market for longer than 30 days. If the bank REO does not appraise for the purchase price and the buyer is obtaining a loan that requires a 20% down payment or less, the buyer's lender will not fund unless the buyer coughs up more cash or the REO lender discounts the price. Cash buyers don't make offers contingent on an appraisal. Before starting the process of buying REO Homes, you need to understand what is involved. Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. the bank then calls this property an REO or real esate owned. Many of the successful REO buyers are leveraging relationships with REO listing agents and buying inventory that is not on the MLS. REO inspection tip..when inspecting houses from the outside, look up underneath roof overhangs and check for hornets nests before you lean it to look through the windows. 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. 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. |
