Investors Attracted to Bargain Basement Prices For Bank Owned Foreclosures.
For a growing number of investors, Detroit’s housing slump is seen as an opportunity to implement the well worn maxim “buy low and sell high”. This does not mean taking a short term view but instead focusing on what happens when house prices eventually rebound. Could this be the path of enlightenment for the savvy investor?
Out of state and even out of country real estate investors have made their presence felt in the troubled Detroit area housing market. Estimates are that up to 80% of houses sold in Detroit are being bought by investors. A growing percentage of sales are in bulk where bundles of houses are sold together.
The Detroit Free Press reports that “Sales were up dramatically in Detroit in February, rising 49% from a year before.” A large percentage of houses currently on the market in Detroit are owned by banks that foreclosed on the previous owner. In a witch’s brew of high unemployment, rising inflation and falling home values, it becomes increasingly difficult for those selling houses to get their asking price.
On the other side of the equation, buyers are experiencing previously unheard of low prices for houses. Want something for under $10,000? Realtors can show you thousands of properties in the area that fit the bill. Looking for fixer-uppers that are ready to rent after cosmetic repairs? Likewise, Detroit is where you want to be.
To avoid the sometimes significant downside of investing in low end properties, investors would do well to establish relationships with real estate brokers that specialize in bank owned foreclosed properties. Two helpful websites that deal with real estate specifically are www.realtor.com and www.activerain.com. Do your homework online beforehand and the chances of a profitable real estate experience increase exponentially.
Monday, March 31, 2008
Thursday, March 20, 2008
Glut of Detroit Area Foreclosed Houses
Glut of Foreclosed Houses Leads to Real Estate Auction in Detroit Area
Over 500 Detroit area houses are scheduled to be auctioned to the public March 25 through March 30, 2008.
Starting Tuesday, March 25, 2008 at 1pm, and running through Thursday, March 27, 2008 an auction of houses will take place at the Doubletree Hotel-Dearborn. On Saturday March 29 and Sunday March 30, more houses will be auctioned at the Ford Motor Company Conference & Event Center.(near the Henry Ford-Greenfield Village)
Keep in mind that you must register in order to bid, but there is no fee to attend the auction. If you win the bid, you will be required to put down 5% of the contract price or $2,500, whichever is greater. Bidders should have cash or a cashier’s check made payable to themselves. You have 30 days to close the transaction after a winning bid is accepted.
According to literature provided by Hudson & Marshall, the company operating the auction, all properties have insurable title, no back taxes and no liens. Details concerning the auction are available at www.hudsonandmarshall.com.
One REO (real estate owned) Brokerage firm participating in the auction will be Bond Realty LLC which specializes in selling bank owned foreclosed properties. At a recent event hosted by the National Real Estate Network, a local real estate investment club, associate broker Jan W. Bond was quoted as saying “Auctions can be a good way to buy real estate, often at below market prices.”
Bond went on to say that his company can serve as a buyer’s agent for those wishing to make sure their interests are protected during the buying process. Mr. Bond can be reached at (313)510-6713. Email address is janwbond@bondrealty.net. The website is http://www.bondrealty.com
Over 500 Detroit area houses are scheduled to be auctioned to the public March 25 through March 30, 2008.
Starting Tuesday, March 25, 2008 at 1pm, and running through Thursday, March 27, 2008 an auction of houses will take place at the Doubletree Hotel-Dearborn. On Saturday March 29 and Sunday March 30, more houses will be auctioned at the Ford Motor Company Conference & Event Center.(near the Henry Ford-Greenfield Village)
Keep in mind that you must register in order to bid, but there is no fee to attend the auction. If you win the bid, you will be required to put down 5% of the contract price or $2,500, whichever is greater. Bidders should have cash or a cashier’s check made payable to themselves. You have 30 days to close the transaction after a winning bid is accepted.
According to literature provided by Hudson & Marshall, the company operating the auction, all properties have insurable title, no back taxes and no liens. Details concerning the auction are available at www.hudsonandmarshall.com.
One REO (real estate owned) Brokerage firm participating in the auction will be Bond Realty LLC which specializes in selling bank owned foreclosed properties. At a recent event hosted by the National Real Estate Network, a local real estate investment club, associate broker Jan W. Bond was quoted as saying “Auctions can be a good way to buy real estate, often at below market prices.”
Bond went on to say that his company can serve as a buyer’s agent for those wishing to make sure their interests are protected during the buying process. Mr. Bond can be reached at (313)510-6713. Email address is janwbond@bondrealty.net. The website is http://www.bondrealty.com
Monday, March 10, 2008
How to Buy Foreclosed Houses & Keep Your Sanity at the Same Time
As a real estate broker and investor for many years, I am sometimes asked by newcomers how I manage to hold on to my sanity in this crazy business. Tip 1. Work with an experienced real estate agent who specializes in foreclosed properties. Especially if you have never bought a foreclosed house before, this tip will greatly increase the odds in your favor.
Tip 2. Do your homework. This can cover a lot of ground. The internet has many potential resources for buying reo foreclosures. Visit these websites for a sampling of available houses: www.countrywide.com/purchase/f_reo.asp, http://www.reotrans.com/ , www.ocwen.com/reo/home.cfm
Tip 3. Show me the money! Unless you have all cash available, you are going to need financing. Do you belong to a credit union or have a checking or savings account with a bank? These are good sources for possible financing. Don't forget that you can apply for financing on-line in many instances. A pre-qualification or pre-approval letter in hand gives you leverage when it comes to negotiating a sales price.
For more info, see http://www.bondrealty.com or email to janwbond@bondrealty.net
Tip 2. Do your homework. This can cover a lot of ground. The internet has many potential resources for buying reo foreclosures. Visit these websites for a sampling of available houses: www.countrywide.com/purchase/f_reo.asp, http://www.reotrans.com/ , www.ocwen.com/reo/home.cfm
Tip 3. Show me the money! Unless you have all cash available, you are going to need financing. Do you belong to a credit union or have a checking or savings account with a bank? These are good sources for possible financing. Don't forget that you can apply for financing on-line in many instances. A pre-qualification or pre-approval letter in hand gives you leverage when it comes to negotiating a sales price.
For more info, see http://www.bondrealty.com or email to janwbond@bondrealty.net
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