BEFORE YOU BUY A FORECLOSURE
Get Answers to These Important Questions
Before you make an offer to buy a property in foreclosure, consider your answers to these 4 questions.
1. What’s the first thing a buyer should do?
As a popular movie once said, “Show me the money!” Do you have cash or will you require financing? In either case, you have to demonstrate you can perform. This means proof of funds for a cash buyer (usually a bank statement) or a pre-approval letter from a lender indicating how much you can borrow.
2. Is this a good time to buy a foreclosed property?
Local market conditions vary so the answer to this question is different depending on location. Buyers in metropolitan Detroit face a much different market than buyers in southern Florida for instance. Contact a Realtor to confirm your impressions of the local market. Prices declined in most major metropolitan areas in the U.S. during 2008. Foreign investors and domestic investors are purchasing in bulk, signaling for them at least, it’s a good time to buy.
3. How can you tell a bad deal from a good one?
Due diligence is a term that means you’ve done your home work. A reasonably prudent investor will thoroughly research details of a potential investment before completing a sale. Unpaid liens, back taxes, outstanding water & sewerage charges, clouds on the title…the list can be quite long. An attorney, a housing inspector, an experienced real estate broker all can work on your behalf to help you avoid the special challenges of buying a foreclosed property.
4. How does neighborhood location affect foreclosure investment properties?
Location, location, location-- the 3 most important things to consider when deciding whether to buy or not. Avoid purchases in distressed and blighted locales. You want to reasonably expect that vandals and thieves won’t strip your property as soon as you leave for the day. Well established neighborhoods are the best to buy in. Even houses needing lots of work can be profitable eventually if you buy in a viable area that has ‘pride of ownership’.
SOURCE: Jan W. Bond, Owner/Broker, Bond Realty LLC, email: janwbond@bondrealty.net
Sunday, April 5, 2009
Monday, March 31, 2008
DETROIT REAL ESTATE INVESTORS – START YOUR ENGINES !
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.
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.
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
Thursday, February 28, 2008
Former Corporate Staffer approaches 7 Years as Independent REO Real Estate Broker
REO Real Estate Broker enters 7th year selling bank owned foreclosed properties in Metro Detroit Michigan. Buyers and sellers of foreclosed houses benefit from the services provided by Bond Realty LLC, a minority owned full service real estate brokerage firm.
Detroit, Michigan (BRltyLLC)– REO (real estate owned) brokerage firm Bond Realty LLC will soon celebrate 7 years in business, serving buyers and sellers of foreclosed houses in Metro Detroit. Bank owned properties are found in upscale, middle class and economically challenged neighborhoods throughout Southeast Michigan. Wayne County especially, has been hit hard by high unemployment and a declining housing market. Not surprisingly, Wayne County had the highest foreclosure rate in the United States for 2007.
Small wonder then that mortgage research company Realty Trac Inc. reported a foreclosure rate that jumped 68 percent in 2007 from the prior year in Wayne County. Sadly, many homeowners have fallen behind on mortgage payments. One website that offers foreclosed properties for sale, ForeclosureNet.net, lists over 6,600 houses for sale in Wayne County alone.
All this activity has provided niche real estate brokers like Bond Realty LLC, an opportunity to put distressed properties back on the tax rolls. “I’ve lived in Detroit since the early 50’s and want to see things get better” said Bond Realty owner Jan W. Bond.
Through his website, owner Bond provides photos, addresses, and prices for properties that typically have been recently foreclosed. Typical buyers are local or out of state investors interested in acquiring foreclosed houses. Bond was first licensed as a real estate broker in 1987. “The local real estate market has gone up, down and all around over the past 21 years” opined Bond. Helpful links to governmental agencies and private firms that cater to the foreclosure real estate market can also be found on the Bond Realty website.
Some properties marketed by Bond are priced below $10,000. To be sure, most are priced less than $100,000. When asked about high end houses, Bond remarked that he sold an Oakland county house for about $725,000 a few years ago. Average home prices in Wayne County are about $111,000 per Realcomp II Ltd., a multiple listing service.
All of this keeps Associate Broker Bond quite busy. A former U.S. Army personnel officer, Bond also served stints with Ford Motor Company and American Motors as a human resources staffer. He graduated from Wayne State University with a Bachelor of Science in Business Administration and Michigan State University with a Master of Labor and Industrial Relations. Contact Bond by his email at janwbond@juno.com or call him at (313)510-6713. Visit the website at http://www.bondrealty.com
Detroit, Michigan (BRltyLLC)– REO (real estate owned) brokerage firm Bond Realty LLC will soon celebrate 7 years in business, serving buyers and sellers of foreclosed houses in Metro Detroit. Bank owned properties are found in upscale, middle class and economically challenged neighborhoods throughout Southeast Michigan. Wayne County especially, has been hit hard by high unemployment and a declining housing market. Not surprisingly, Wayne County had the highest foreclosure rate in the United States for 2007.
Small wonder then that mortgage research company Realty Trac Inc. reported a foreclosure rate that jumped 68 percent in 2007 from the prior year in Wayne County. Sadly, many homeowners have fallen behind on mortgage payments. One website that offers foreclosed properties for sale, ForeclosureNet.net, lists over 6,600 houses for sale in Wayne County alone.
All this activity has provided niche real estate brokers like Bond Realty LLC, an opportunity to put distressed properties back on the tax rolls. “I’ve lived in Detroit since the early 50’s and want to see things get better” said Bond Realty owner Jan W. Bond.
Through his website, owner Bond provides photos, addresses, and prices for properties that typically have been recently foreclosed. Typical buyers are local or out of state investors interested in acquiring foreclosed houses. Bond was first licensed as a real estate broker in 1987. “The local real estate market has gone up, down and all around over the past 21 years” opined Bond. Helpful links to governmental agencies and private firms that cater to the foreclosure real estate market can also be found on the Bond Realty website.
Some properties marketed by Bond are priced below $10,000. To be sure, most are priced less than $100,000. When asked about high end houses, Bond remarked that he sold an Oakland county house for about $725,000 a few years ago. Average home prices in Wayne County are about $111,000 per Realcomp II Ltd., a multiple listing service.
All of this keeps Associate Broker Bond quite busy. A former U.S. Army personnel officer, Bond also served stints with Ford Motor Company and American Motors as a human resources staffer. He graduated from Wayne State University with a Bachelor of Science in Business Administration and Michigan State University with a Master of Labor and Industrial Relations. Contact Bond by his email at janwbond@juno.com or call him at (313)510-6713. Visit the website at http://www.bondrealty.com
Wednesday, February 20, 2008
Investing In Detroit Foreclosed Properties
Make no mistake about it, investing in foreclosed properties in Detroit now can be very profitable. On the other hand, especially for the new investor, the pitfalls can be daunting. What's an investor to do? Get a guide. Someone who has been there, done that. Do you think a lifelong Detroiter can help you miss some of the potholes? You bet your boots! How about 20 years experience as a real estate broker? Check. Been there, done that.
Tip Numero Uno. Work with an experienced real estate professional who specializes in foreclosed properties. A good real estate agent can be helpful and guide you in unfamiliar territory. Never dealt with the civil servants at the Building & Safety Engineering Department? Not to fear, I have that covered. Don't know a lis pendens from a lien? I work with professionals at the title company to give you a plain English description of what you need to know to ace your next real estate deal. Come on in, the water's fine. Jan W Bond - Associate Broker, Bond Realty LLC.313-510-6713,janwbond@bondrealty.net http://bondrealty.com
Tip Numero Uno. Work with an experienced real estate professional who specializes in foreclosed properties. A good real estate agent can be helpful and guide you in unfamiliar territory. Never dealt with the civil servants at the Building & Safety Engineering Department? Not to fear, I have that covered. Don't know a lis pendens from a lien? I work with professionals at the title company to give you a plain English description of what you need to know to ace your next real estate deal. Come on in, the water's fine. Jan W Bond - Associate Broker, Bond Realty LLC.313-510-6713,janwbond@bondrealty.net http://bondrealty.com
Subscribe to:
Posts (Atom)
