A lot of home buyers are interested in wading into the Realtor marketplace, but don't know where to start. Without the inside scoop on Realtor's it can be a tough market to crack into for a beginner. Many of the Internet buying success stories are usually a combination of years of real estate experience combined with a little good luck.

For a beginner this is no reason to get discouraged. There are plenty of REO's out there and even the most seasoned investors don't know where to locate many of them. Here are 5 tried and true tips to help you find success in REO buying:

Find out where the REO's are: The Internet is full of "experts" who claim to have the inside track on REO's. Most agents will limit their property search to the MLS and end up missing thousands of great deals. The secret about finding REO's is just going directly to the banks. Most banks in the US will publish their REO listings in an easy to search format on line. A list of large banks can be found here: RepoFinder.com/REOfinder, or if you prefer to search smaller banks and credit unions a list of those is located here: RepoFinder.com. You can also find a Realtor in your area that specializes in REO buying. Ask a lot of questions and make sure you are dealing with with someone that can help you find the very best deals. Gain this person's confidence, and you will reap the rewards. If you live within 100 miles of a major city, there should be REO agents who handle your area.
Remember that banks are also REO experts: Banks don't arbitrarily throw a price out there on REO's. They've already done their due diligence and on the property and know that for every REO there are plenty of buyers out there. Most banks have quite a bit of wiggle room, but you need to be realistic. If you can inspect the property with an expert, be sure to make a list of reasons to justify your low-ball offer.
Relax:The banks don't want the properties on their books, but there is quite a process in discounting property and moving it off their books. These are bankers you're dealing with not real estate agents. They want to make a deal to, but you need to be patient with their turn times.
Less is more: The bank doesn't want to jump through hoops to try and appease all of your demands. The fewer strings attached to your offer, the more likely you'll see an acceptance.
Make sure you're 100% qualified: Cash buyers always win here, but if you must finance make sure all of your paperwork is in and your completely qualified. Remember that banks are in the lending business and they are going to be extra vigilant. Have you provided updated income statements to your lender? Has your income or debt-to-income ration changed? Stay on top of this so that you're ready to pounce when you land a good deal that wants to close fast.

These are just a few tips to help you start. Ask a lot of questions and be don't get discouraged if your first few deals don't work out. The real key is finding the right property that's good for you.

Thursday, March 7, 2013

Buying Bank Owned Properties (REO) - http://www.realestateabc.com/homeguide/reo.htm

Buying Bank Owned Properties (REO)

by Walt Harvey
Walt and Arla Harvey are Realtors in Honolulu, Hawaii

Monday, December 31, 2012

Top 5 Reasons to Buy an REO Property

RepoFinder.com has listed the top 5 reasons to buy a bank or credit union REO. Home buyers across the Nation may not even know about these properties or where to buy them. This article will help familiarize buyers with the benefits of buying direct from a credit Union or local bank.

5- The price is right:

The first thing people associate with buying an REO is getting a low price. When REO's are purchased directly from the bank or credit union there is generally no commission, fee, hidden cost, auction registration charge, etc. These properties are sold only to cover a loss. In almost no circumstance does the bank or credit Union net a profit from the sale. These orphaned properties are typically sold at a loss and if there is residual equity from the sale it is returned to the prior owner. The lenders DO NOT want these properties and they are priced accordingly to sell quick.

4- Bank / Credit Union financing is the best:

A lot of Agent will tell you the most lenient financing and the best interest rates will always be the local credit unions and small banks. After all, they were the ones that financed these properties originally. Small banks and credit unions can negotiate both the price and the interest rate. With low prices and low rates you always get the best deal.

3- Banks / Credit Unions are a trustworthy seller:

Local credit unions and banks are built on the foundation of trust. Their financial reputation is at stake every time they work with you. They absolutely cannot afford to breech that trust over a the sale of an REO. Repo homes are typically sold “as-is” and the sales are final. You won’t be pressured into buying something you don’t want. Make sure you do your due diligence and are certain you want the property before you commit to buying.

2- Plenty of quality inventory:

REO's are not all the same. We’ve heard horror stories of severely damaged homes forclosed from drug dealers and resold at auction. This is generally not the case with buying local credit union REO's. The vast majority of credit union owned properties are voluntarily surrendered in great condition.

1- Search Credit Union inventory from home at no cost:

In the old days of the internet, and even today several websites claim to have exclusive access to REO lists. In reality they are only selling you public records and local auction house contact info. They make claims exagerated claims to entice you into paying memberships, but they make absolutely no guarantees that you’ll get any results.

For more information visit: http://RepoFinder.com