Foreclosures and Bank REOs

Hunting for foreclosures can be a time consuming and sometimes fruitless endeavor. It is critical to be well prepared so when you find a great deal you are ready to act. Knowing who to call, how you will evaluate the value of the investment and where you funding is coming from are all keys to a successful real estate investment. Here are the keys to finding obtainable foreclosure properties:

Speed
There is substantial competition when looking for Bank REO and foreclosure properties. It is absolutely key that the foreclosure lists you obtain are fresh and up-to-date. Data that is just a few days old can cost you the ability to make an offer on a property. Many times the best deals on foreclosures are snapped up within 48 hours of the listing getting publicized.

Diligence
Reviewing available foreclosures and Bank REO data religiously is critical. Once a week is not enough if you want a truly great deal on an investment property. Create a schedule and routine for your foreclosure search, bookmark your website links and attack the listings at least once a day. Subscribe to XML/RSS feeds of available properties any time it is offered. These can easily be aggregated using tools like Google Reader or any other RSS reader.

Make Offers Fast
Have your contracts and addenda ready to go, don’t wait until you find a foreclosure to prepare your documents. You will be beat to the punch by other real estate investors if you don’t act fast. Be sure to have your evaluation methods handy and ready to go, this includes comparable sales data, estimated property values etc.. Don’t get emotionally attached to a foreclosure property, if the numbers don’t add up, walk away. There will always be plenty of great deals out there.

Explore Your Buying Area
It is absolutely critical to keep up your personal knowledge of your investment area. Know good profiles of neighborhoods and subdivisions you are looking for foreclosures in. Know the local traffic conditions, schools, shopping districts. This will help you quickly evaluate the speed at which you can monetize these investments. Driving your area will also help you find other types investment opportunities including FSBOs and potential properties, which may be found due to unkept lawns or city/county notices.

Have Your Funding Ready
If you are using “Other People’s Money”, be sure you are pre-approved and know how much funding you have available to offer on properties. Have a good working relationship with your real estate Brokers (if you are not one already), Attorneys, and funding sources. Whether you are funding the deal yourself or using other funding sources, be sure you have a funds availability letter ready and in hand. Many foreclosure and bank REO offers won’t even be considered without some form a proof that you have the money to close the deal.

Sometimes this all can become overwhelming, this is where full-service wholesale real estate brokers can come in handy. These brokers offer many indispensable services when it comes to obtaining REO and foreclosure properties. They have the experience and established relationships to negotiate short sales, foreclosure acquisitions and direct bank REO purchases. They can also assist you with finding the proper funding for you investment property, this can include extra funds to pay for the rehabbing of the property and most of these loans do not have the requirements that a conventional mortgage loan would demand such as property conditions and personal financial documentation.