| The hottest real estate investment market available | | | | at the property. This requires some knowledge of the |
| today is bank owned properties used in conjunction | | | | area where you are investing and the availability of |
| with Section 8 landlording, where possible. Compared | | | | tools like Google Maps for previewing the property. |
| to the many other strategies of investment, like | | | | You can usually ask for an inspection period of 5 days |
| probates, short sales, subject to and so on, bank | | | | so you can always cancel your offer when you do |
| owned properties aka REO (Real Estate Owned) | | | | visit the property after its acceptance. |
| offers the lowest marketing cost in the acquisition | | | | Of course you shouldn't make an habit to cancel |
| phase: you just need to browse any one the many | | | | every offer otherwise Realtors won't work with you |
| specialized sites. | | | | any more. And you have to go through Realtors to |
| Once you have sent the offer to the bank you'll get a | | | | present the offer to the bank. My advice is to be |
| counter offer within days (not months like in short | | | | considerate in making the offer. Never bid more than |
| sales) and you'll be able to know pretty soon if you are | | | | 82% of the asking price as a start and rather try to |
| going to close on it or not. | | | | stay on the 40 - 50% of the after repair value. |
| You can find more properties than you'll be able to | | | | The right balance will come from a knowledge of your |
| personally handle and you will find very good deals do. | | | | area and of the specific lender you are dealing with. |
| You can usually buy at around 60 to 50% of current | | | | Keep in mind that these properties ALWAYS need |
| market value with little negotiation, and you can go | | | | rehab, and sometimes they are in very bad shape. |
| lower if you become a bit more expert at making | | | | The competition will be fierce and the faster the better, |
| offers fast. Actually, the really good deals are gone in | | | | but you can also get the better results. The key is to |
| a matter of days and therefore you will have to make | | | | make offers EVERY single day. |
| it an habit to make an offer BEFORE you go and look | | | | |