A New Year, Try Different Strategies

A New Year, Try Different Strategies

Investors, take note. There is a ton of money to be made in the current market. Foreclosures, Short sales and REO properties are all far more plentiful. One of my investor clients in 2008 increased his net worth to 1.1 million dollars through the purchase of REO and short sale properties. Yes it’s true, he started 2008 with a few rental properties but when he and I discussed the success he had in 2008, we were ecstatic with the discovery of his 20 purchases of residential properties. Of the 20, he sold 7; he owner financed 2 and rents the rest. His biggest year ever!
Don’t let this money making opportunity pass you by Call Me, Felicia Hood Today!!
What Are Short Sales?
A short sale occurs when a home owner is in foreclosure but before the property goes to public auction. Under a short sale, a lender must agree to accept less than the amount that is owed on the property.
Unlike a foreclosure, investors typically buy the home for even less because investors are not paying off the existing loan or making up the back payments. Investors are striking a deal with the existing lender to take less than what the lender has coming to avoid dealing with a foreclosure.
It's a myth that lenders are not going to make a deal with an investor unless the seller has fallen behind on the seller's obligation to make timely mortgage payments. Sellers don't need to be in default for a short sale to occur. For a buyer who wants to occupy the home, buying a short sale, makes financial sense.
What are REOs - Real Estate Owned?
· Buying an REO is similar to buying a short sale except the property is already owned by the lender.
· The property was acquired by the lender through a foreclosure action.
· Often lenders will sell repossessed homes for less than the past loan balance.
· Bank-owned properties are called REOs, meaning real estate owned by the lender.
Banks end up owning the property when nobody at the public auction bid enough to cover the amount owed against the property. REO homes are often considered the best way to buy a distressed property because the seller is already out of the picture. It's just the investor, the investor's agent, the bank and the bank's agent who are negotiating the transaction. Some REOs can be purchased directly from the lender, for more information, contact me, at Felicia@felicianicolehomes.com or 803-235-6398!!