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REO - Bank Owned Properties

Working Directly with REO Listing Agents

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Working with REO Listing Agents

Like previously mentioned, working with REO listing agents is a big deal. The best situation is to find a lock box on the door with no “For Sale” sign.

Listing AgentThis is a good indication that the home is vacant and the listing is still pending. There is no “For Sale” sign yet because the REO listing agent doesn’t have the listing yet.

So you have a few weeks, while the property is in transition, to contact the REO listing agent, and let them know you are interested in making an offer.

Now, before you call the listing agent, you need to make sure you know what the value of the property is and what you are willing to offer.

I will go through all this later… [Read more…] about Working Directly with REO Listing Agents

Making your offer to the bank

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Preparing to make your offer to the bank

Once you have found that perfect REO “bank owned property”, you need to prepare to make your offer.

making offer to bankSo let’s recap… When you find a property with a lock box and no “FOR SALE” sign, the first thing you need to do is research.  You need to know who owns the property and what it’s worth so you know what to offer.   If you need help, re-read the previous sections on determining value, estimating repairs, and what to offer. [Read more…] about Making your offer to the bank

Understanding Your Market

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Understanding Your Market

Finding-PropertiesAs you start to get in this game, on of the first things you need to understand is your market and who you are targeting. This is important because you want to give yourself the best chance or opportunity to make money. So knowing your market can help you sell more real estate.

All markets throughout the country are different. But that’s ok, the important thing is to know what types of properties to target. For now, you want to target entry level homes in good neighborhoods. The reason is simple. More buyers. [Read more…] about Understanding Your Market

Lender Resell Restrictions

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Lender Re-sell Restrictions

When dealing with banks, trying to flip properties can sometimes be challenging, especially with lender resell restrictions.  Some government organizations are even telling investors how much money they can make before these restrictions apply.  Not cool.

Right now we are seeing lender resell restrictions anywhere from 30 days, 45 days, and occasionally 60 and even 90 days.

So what can you do in order to get rid of the re-sell restriction?

Well my friend Cameron Dunlap created an awesome video that explains a few things you can do to help overcome these lender restrictions.

If it’s with a bank other than a government organization, many times investors can simply ask the bank to eliminate the re-sell restriction.  Sometimes they will and other times they won’t.

When they tell you “too bad”, then you have one other option.  This option requires you to have a cash buyer in place.  This will not work if your end buyer needs financing.

Remember too that the type of houses this works well for are houses that need repairs.

In a nutshell, you are putting the property under contract with the seller.  Then your end buyer (who is a cash buyer) becomes your private money lender.  You will close with the bank and sell to your end buyer on a lease option.  A mortgage is created in the amount of what your end buyer is planning to purchase it for.  This also means your end buyer has a lien on the property to protect their interest.  You will also sign a deed to your buyer and put it in escrow.   Then after the restriction period is over, the deed that is in escrow is recorded and your end buyer is the new owner.  During that 60 or 90 day period, the end buyer has been able to rehab the property because the lease option gives him those rights.  Then he can sell to his end buyer who needs financing.

 

 

 

REO Rockstar Review by Preson Ely – Honest and *Real*

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From the Mac Pro of Jarad Severe
Location: Underground Testing Lab (ie my home office)
About: REO Rockstar (by Preston Ely)

Preston Ely Reo Rockstar ReviewSo I know you’ve been hearing a ton about Preston Ely and REO Rockstar.

And you might actually be considering buying Preston’s program since you are looking for an REO Rockstar Review.

Here’s the thing though.

And this is important… [Read more…] about REO Rockstar Review by Preson Ely – Honest and *Real*

outstanding water bills prior to OUR purchase from the bank

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Question:  In Illinois,if there are outstanding water bills prior to OUR purchase from the bank, do they get wiped out when the property is sold on the courthouse steps?

Answer:  – Yes, when the bank forecloses on a home and they get it back as an REO, in order for them to sell the property with a listing agent, the home usually has a clear title. If it doesn’t, you’ll be able to see what is clouding title when you go to closing. That’s also why you get title insurance. The title company is protecting you against any unpaid real estate taxes or liens.