Wednesday, December 17, 2008

What's an REO?

The question the month is "What is an REO?" The term REO (Real Estate Owned) means that the bank now owns the piece of property. Basically, the property has gone through foreclosure, put on the auction market, and did not sell. Therefore, it is now owned by the banks.

REO's can be a good investment but you must know what you are getting into. It's not just a good buy because it's cheap. Often times, owners will trash a house once they are given a foreclosed notice. I have even seen an REO property with the piping torn out of the wall before the owners moved out. However, it can be a good buy but the same rules apply - how the bones of the house? Make sure you get an inspection before you close the deal. The bank requires that you buy "AS IS."

The reason an REO could be a good option for you is if it's an a decent location either to live in for yourself OR if you plan on renting it. The price could be right and the bank is not into owning an REO. Banks often get fined by the Federal Government for owning REOs so they want to get rid of it as soon as possible and they tend to sell it for around 30%-40% of it's value. Not a bad deal, eh?

So, if you are interested, I can send you some REOs in the surrounding areas. However, if you are seriously thinking about buying then let's talk loans. It's harder these days to get financing and typically a bank will want 20% down if you are an investor planning on renting the property. If you are thinking of buying for you to live in it, the banks are looking for at least 5%-10% as a down payment.

Send me an email and/or call and I can send you some REO's ins the area you are interested in.

Friday, December 05, 2008

City Walk Wrapped Up Tight!

So, it looks like the City Walk project will not be completed anytime soon. The developer claimed bankruptcy in 2007 with the hopes of getting additional financing in 2008 to complete the project. With the state of the economy there looks to be little hope to finish. Read below for more details...