| The imagination can take in many directions when you | | | | value, and potential of properties is a sole responsibility |
| are interested in buying foreclosed property with no | | | | of the investor. You can contract the professional |
| money down. It's possible and it's profitable for the right | | | | services of a real estate agent if you are willing to pay |
| investors with a creative mind that can assess a real | | | | the commission associated with closing costs. |
| estate learning curve. | | | | Low Ball An Asking Price |
| First-time and experienced real estate investors have | | | | Negotiations for foreclosed properties can run |
| recognized the potential for foreclosed properties; the | | | | between 5-10% dependent upon inspection for |
| importance of buying foreclosed properties is to | | | | bank-owned properties. Buying foreclosed properties |
| increase their value for a profitable return in the sales. | | | | involve low balling offers to make the REO or bank |
| Secure Financing with Low Rates | | | | close below your loan. You will not use any of the |
| Investors with amazing credit can secure financing by | | | | money you have in your account; you are using the |
| working with a bank for an equity line from their home. | | | | funds from a bank to purchase the properties. |
| Another option is to apply for an online application for | | | | Sometimes you may earn a great deal for 20% below |
| quick approval for home loans with reputable banks. | | | | market value by meeting the bank partially in their |
| Search for the best rates to finance the investment so | | | | asking price.You may reach a great point iIf you can |
| the negotiation process is easier. The importance of | | | | pick out various aspects of the property that requires |
| securing financing before the house hunt is it makes | | | | repairing such as electrical rewiring, replacing dry wall, |
| your search more confident. By securing financing first, | | | | and other expensive repairs. |
| you know how much you have to invest and can plan | | | | Once again, banks are interested in earning money |
| a focused search through properties. | | | | because they do not want to keep the foreclosed |
| Buying foreclosed properties for low,low cost | | | | properties. |
| (30-40%) may require high risk investing in renovations. | | | | Majority of today's real estate investors are buying |
| Another important issue surrounding financing is to | | | | foreclosed properties with no money down. The |
| accept and lock in fixed-rate loans to counter the | | | | money placed on properties generally come from |
| possibility of a fluctuating market. | | | | equity loans from their current lender. Others are |
| Work with REO Officers/Real Estate Agents | | | | negotiating properties to pennies on a dollar depending |
| REO officers manage bank-owned properties and | | | | on the location of a potential property. |
| their sales. Work with two REO officers in your local | | | | Establish strong relationships with REOs, real estate |
| market to see who offers the best prices for | | | | agents, and bank representatives in your area. These |
| prospective properties. Buying foreclosures with no | | | | relationships will depend on the success of your real |
| money down means working closely with officers to | | | | estate investment business - this starts at day one |
| examine property lists. | | | | and continues throughout your involvement with |
| Many REO officers are familiar with the specifications | | | | foreclosure purchases. |
| of a property; this insight regarding location, market | | | | |