I recently secured another REO for an investment client. Not as easy as you might think. You would imagine that a cash buyer with realistic expectations of competition and a sincere desire to purchase property at a discount could easily find a good bank owned property to buy for investment. His intention is to put renters in his purchase and ride out the downturn.
A couple of things to consider when looking for REO property for your investor clients:
1. Primary residence buyers have much more to gain by running up the price. They are not looking at cash on cash, and like a bad poker player, they often act without knowledge. Your investor will do better looking at properties the homeowners are not interested in buying. Duplexes, Four-plex's, major fixers, and negotiating great deals on long listed properties.
2. A residential primary residence buyer will jump through hoops to get it done. Your average investor is reachable in their office during normal business hours.
3. I believe that asset managers have a heart. They tend to favor the home buyer over the investor. That and the home owner is more likely to offer high prices.
4. Most importantly, the investor is harder to get to the property to make an informed decision. I am not saying that the emotional decisions made by the average buyer are any better, but at least they know the roof is falling prior to the contingency removal date.
This week I submitted 4 offers for Bank or Lender owned property, and ran into a wall of offers. I was the second person in the house, and I type offers pretty fast. By the time I faxed over the offer and made the confirmation call at 9am, they had 14 offers. There is a massive amount of money that has been waiting for this market.
Act Fast....Your still sitting here....Act Faster....The time is now to be the next real estate mogul.
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