In February 2012, the Federal Housing Finance Agency (FHFA) began implementing a pilot program that would offer REO’s to investors in bulk. This program was called the REO-to-Rental Pilot Initiative and offered about 2,500 real estate-owned properties for sale. The investors would not be your typical investors, but large real estate entities that could afford to purchase and manage an extensive portfolio of distressed homes.
This program was strategically launched in markets with a high inventory of REO’s, and a high demand for rental units. Investors who were interested in bidding on these bulk properties were required to submit an application. Applicants were considered and qualified based on financial ability, asset management experience, property management expertise, and familiarity with select locations.
“FHFA undertook this initiative to help stabilize communities and home values in areas hard-hit by the foreclosure crisis,” said Edward J. DeMarco, Acting Director of FHFA. “As conservator of Fannie Mae and Freddie Mac, we believe this pilot program will assist us in achieving our objectives and help to maximize the benefit to taxpayers. We are pleased with the response from the market and look forward to closing transactions in the near future.”
The investors who applied for participation in this program were recently selected, and the purchase transactions are expected to close as early as this month.
While many real estate investors in Silver Spring, MD could not qualify for this initiative, there are still plenty of distressed homes available. If you are interested in searching for distressed properties in Silver Spring, MD, make sure you work with a Certified Investor Agent Specialist (CIAS).
A CIAS is uniquely qualified to find, create, and close with residential real estate investors using the knowledge and innovative tools earned through comprehensive education and experience. CIAS-designated agents can streamline the process of real estate investment to increase returns for investor clients by helping real estate investors navigate:
- Investment Strategies
- Self-directed IRAs
- 1031 Exchange
- Leverage Options
- Key Calculations
- Return-on-Investment
- Capitalization Rate
- Average Returns
- Cash Flow
- And much more
If you are interested in investing in Silver Spring, MD real estate, contact Emcee Arah of the EMA Real Estate Group online or by calling 301.452.5252. Emcee is both a Certified Investor Agent Specialist (CIAS) and a Certified Distressed Property Expert (CDPE).
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