Yeah it has been a minute since I wrote here on my blog but that is because the real estate market has actually taken a spike in the upward position.
Investors are now buying, whether it is a preforeclosure, foreclosure or REO.
My colleagues have been calling me asking if I know of any great deals. The funny thing is, those that buy cash have been asking and those investors that want to get rid of their properties have been contacting me for buyers.
Although I am not a licensed real estate agent, I have been lucky enough to have a load of investors, like myself, who come to me for either properties or my database of buying investors.
I, myself enjoy buying REO’s but I prefer buying preforeclosures.
My reasons are because:
- It is much easier to negotiate with an owner of a property than it is with a bank after foreclosure.
- The owner is in a really tight bind and because they know they will not get any profit on the deal, they can care less what you offer the bank.
- The bank, in turn, would rather sell the property at a discount than to foreclose on it.
- I can offer as low as the market calls for minus repairs and don’t have to worry about a bidding war.
Although these are all the positive reasons for buying a preforeclosure, there is a negative aspect to it as well. That reason is there are some banks that take up to two years to approve your offer.
I said approve because very rarely will you get a disapproval, especially if you know the market and possible construction cost on the property and offer in the “fair” range according to these numbers.
Despite the possibility of a long wait, I’d rather deal with the wait on a short sale approval than to put down a deposit and have my money held up for months waiting on an approval or disapproval.
That money they hold can be used for other opportunities that I may be missing out on while I wait.
When buying a preforecloure you do not have to tie up your money in any way.
