You have to buy correctly to make a good profit in real estate. To find the best transaction for your particular situation, check out all the property types available. Think fixers, distressed sales, repossessions, numerous listings, owners for sale, and just wasting away vacant properties. Checkout the Homepage.
Recognize the distinction between a fixer and a property that is distressed. Fixers or simply unwanted houses may be distressed properties. Divorce, work loss or relocation, death, financial distress, and other issues also cause prices to be below market value. Just because the issue of an owner sparks a distressed sale does not indicate that the house needs repairing.
While the repossession market last summer seemed to have dried up, houses are again starting to appear on foreclosed lists. With Nationwide Mortgage (www.seetloan.com), Lender Rob Kramarz says that this could be the beginning of another boom in real estate investors.
HUD, VA, Freddie Mac, Fannie Mae, and Bank-REOs are searching for great bargain properties for sale (acronym for real estate owned). Real estate agents are trying to deter you from relaxing and switch you to multiple homes listed. Do not listen to negative comments about how difficult it is to find a good property for a contract. Find a new agent. At the time of this writing, even in the hot market, where the average house sells in less than three weeks, we found two properties below market value for at least forty thousand dollars.
It’s a waste of money to pay for a listing service to mail you lists of repossessed properties. Actually, the houses are already sold by the time you get these lists. For no charge to you, several web pages listing foreclosures excel on the web.
To see a repossessed house, take a flashlight with you. With no electrical service and window-covering boards, it is difficult to view dark rooms. A successful real estate agent has a flashlight of her own, but you want to see what you want, not what she wants you to see.
New HUD listings are posted online late Thursday night or Friday morning in our area. Fresh “Daily’s,” previously sold homes that dropped out of escrow after Saturday morning. Properties not sold remain listed as regular during the bid period. Bids due at midnight on the following Tuesday must be sent by a real estate agent who has completed registration for HUD. Use a realtor who is not familiar with selling HUD houses. Don’t waste your time. Any error causes the offer to be disqualified. Do not use an agent who insists that you have to pay well above the minimum bid. Find a HUD homes specialist agent who wants to work on your terms with you. For much more than the minimum bid, many bargain HUD homes sell. Hold out for the one property that has no way of overbiding. (On our second home owner-occupant mountain cabin, I bid around $40,000 under the minimum.)
Many bids are submitted and we win enough to make it pay us well. As an owner-occupant, HUD only permits one repo purchase every two years from the date of closing.
Depend on your gut instinct and don’t let you be unduly influenced by your real estate agent. For your agent to make a machine offer is not a difficult process. To get a good bid, you need an agent willing to make a few offers. It’s like a lottery win, with the odds in your favour.
Bids must include the loan commitment statement of a lender. Lenders who are unfamiliar with HUD specifications often waste their time. Any error would result in you losing the purchase. Not all lenders comprehend the bid, finance, and purchase process of HUD.