Posts Tagged ‘bank owned homes’
How to Structure an REO Deal That a Hard Money Lender Will Finance
I get this question on REO Rockstars calls a lot so let me share a bit of free insight on why REO agents and investors buying bank owned homes have their hopes of a golden finish blow out violently, like a speed skater who's shoved into the boards, trying to squeeze out Apollo Ohno on the last turn before the finish line! Grab a pen and paper and take some notes my friend. This stuff is not for the fainthearted but it doesn't take 4 years of torturous training either-just a tiny little bit if focus. You can manage that can't you? 
...Every day my office receives offers from these "would be" investors. Seems like everyone has taken some class, "learned from a friend", or just plain walks blindly into the "investor" game. Now not to be critical of REAL investors here. We do business with PLENTY of super smart guys who make a very good living at this. But how do they do it? Well, it begins with the basics of knowing HOW to structure a deal that just makes sense. Contrary to what the "wanna be" guys seem to think, a great deal involves a heck of a lot more than looking at a few comps and speculating on a flip price. Bluntly, It is not the HOUSE that matters. It's the PLAN. Smart investors, the guys who actually make a career out of this (and no, I'm not talking about some of these TV goofballs who make me cringe as they buy termite infested, water logged, structurally defunct houses and end up rebuilding from the foundation up-HACKS!), break the numbers down to the last penny, including the financing factors. First, they have to consider "where" they are going to get the non-occupant financing and more importantly "how" they are going to convince the hard money guy to fork over a chunk of change to finance the project.
1 Quick and Easy Way to Get HUNDREDS of Extra Man Hours Out of Your Staff.
You know, when you do a lot of volume in REO, you spend a lot of time looking at the big picture and you sometimes forget about the small improvements that could greatly impact the efficiency and morale of your team. Sit here for just a moment now and imagine that you are sitting in your office chair trying to get a little work done. As you stare at the words on your computer screen, words that look a lot like the ones you see on your screen now, black on a white background, you begin to feel yourself tuning in. The more you stare at these words and the the tasks they represent, the more you settle into your place and get so focused that you can almost feel your chest rise and fall with each breath you take. You are in your zone, to the point that you are feeling super energized and ready to accomplish the work of two or maybe even three people. Then all of a sudden...
A Quick Fix for Drywall Discoloration in REO Properties for Sale
It is quite common to find discoloration caused by water intrusion in abandoned foreclosure listings. Depending on the price and condition of the property, your client may choose to repair and replace or simply find a more cost-effective solution for getting the home free of potential safety hazards and ready for market. In this video, I'll show you how we creatively handled the situation in a property that had some discoloration in the basement. I should mention that I hear myself using the word "mold" in this video. I am incorrectly saying using this term. The drywall had discoloration and I am NOT a mold expert and could not identify it as discoloration of the drywall. Furthermore, you'll notice that I mention that it is less than 100 contiguous feet, which is the standard by which many companies determine whether or not full "remediation" is necessary. In this case, it was not. Take a look at the end result of our "fix". Also be sure to notice that I check to see if the source of the problem is fixed as well. In this case it was not and I had to report it to my REO Asset Manager and my contractor had to return and get it corrected. "Band Aids" don't work. Double check every time! Hey, a repair like this on a bank owned property isn't always a pretty process but it gets the job done safely and properly!
Haha...I'm BACK!...and You Better "Listen Up"!
Hello again REO Rockstars! As many of you know, I have been a regular road warrior lately, going cross country for weeks at a time to get knee-deep in the trenches with the big shots of the REO world. Accept my apology for the delay in new posts, but trust me, you won't think I owe you anything-nada-when you soak in all of the knowledge that I've gained to share with all of you in the next few months. In case you haven't noticed, things are changing quite a bit in our industry. Banks are telling us of MONSTROUS foreclosure numbers that are looming like giant storm clouds ready to crash down on just about every major city in the country. While many people have been listening to the b.s. being spewed out by the media that "times are getting better", I'm here to tell you that we're merely in the eye of the foreclosure storm-and a TERRIFYING storm it's gonna be.....that is, except for us REO guys!
Performing an REO Eviction
Performing and eviction on one of your REO properties may seem like a daunting task but it's really quite easy. As the broker, your role is primarily to coordinate the arrival of a crew of guys to assist in carrying the furniture and any other belongings to the curb and to assure that things such as the re-key and securing of the property take place. Once the crew is finished with their job, you simply photograph the property, install the sign and lockbox and you're on your way. Watch this video to see how simple the process really is.
