2013년 10월 23일 수요일

Rodrick Gorden's blog ::Due-Diligence: Developing a Product Offshore (Info, Material, Price)






Rodrick Gorden's blog ::Due-Diligence: Developing a Product Offshore (Info, Material, Price)










The               Century               21               Real               Estate               bank               owned               foreclosure               list               provides               nationwide               listings               of               discounted               properties.

Each               property               is               owned               by               various               lenders               and               priced               below               market               value               to               entice               a               quick               sale.

Although               bank               owned               homes               are               discounted,               they               generally               require               some               level               of               repair.

As               with               any               property               investment,               homes               presented               through               the               Century               21               real               estate               bank               owned               foreclosure               list               should               be               inspected               and               appraised.

Offers               are               presented               to               assigned               Century               21               realtors               and               passed               along               to               the               representing               bank.

Lenders               then               determine               if               they               will               accept,               reject               or               make               a               counter-offer.
               The               primary               benefit               of               buying               bank               owned               homes               vs.

foreclosure               homes               is               the               real               estate               is               sold               with               a               clean               title.

When               properties               are               sold               through               foreclosure               auctions               they               often               have               creditor               judgments               and               tax               liens               attached.

In               some               cases,               evicted               homeowners               continue               residing               in               the               home.
               Buyers               must               negotiate               with               creditors               to               obtain               lien               removal               and               are               responsible               for               commencing               with               eviction.

Once               the               bank               regains               ownership,               they               take               measures               to               remove               liens               and               evict               homeowners               or               tenants.
               The               primary               disadvantage               to               buying               bank               owned               homes               is               lenders               are               rarely               eager               to               enter               into               price               negotiation.

When               banks               initially               commence               with               foreclosure               proceedings               they               place               properties               for               sale               through               public               foreclosure               auctions.

If               the               real               estate               does               not               sell               at               auction               it               is               returned               to               the               lender               and               becomes               part               of               their               investment               portfolio.
               Banks               are               in               business               to               make               money,               not               manage               real               estate               sales.

Lenders               need               to               sell               toxic               assets               in               order               to               maintain               their               line               of               credit               through               the               Federal               Reserve               Bank.

Since               lenders               incur               substantial               financial               loss               during               the               foreclosure               process,               they               need               to               sell               the               property               at               or               slightly               below               its               appraised               value               in               order               to               break               even               or               minimize               losses.
               With               that               being               said,               Century               21               foreclosure               real               estate               can               be               a               great               place               to               start               when               looking               for               a               primary               residence,               vacation               home               or               investment               property,               as               long               as               buyers               engage               in               due               diligence.
               Bank               foreclosures               are               sold               in               as-is               condition               and               buyers               are               responsible               for               repairs               and               renovations.

Buyers               should               obtain               property               appraisals               and               home               inspections               to               determine               accurate               property               value               and               estimated               repair               costs.

If               major               problems               are               revealed               during               the               inspection,               prospective               buyers               can               use               repair               estimates               to               negotiate               the               asking               price.
               Many               home               buyers               and               real               estate               investors               utilize               broker               price               opinion               appraisals               to               reduce               initial               costs.

Two               types               of               broker               price               opinions               are               available               and               include               internal               BPO               and               drive-by               BPO.
               As               the               name               implies,               drive-by               BPO               means               brokers               drive               by               the               property               to               obtain               information               about               the               neighborhood,               lot               size               and               exterior               condition               of               the               home.

With               internal               BPOs,               brokers               enter               the               home               to               take               room               measurements               and               examine               the               home's               interior.
               In               order               to               place               an               offer               on               Century               21               bank               owned               foreclosure               properties               buyers               must               obtain               preapproved               financing               and               provide               proof               of               funds               with               their               property               offer.

The               exception               to               this               rule               is               if               buyers               plan               to               purchase               the               property               with               cash.
               Century               21               bank               owned               foreclosures               include               a               wide               variety               of               residential               and               commercial               real               estate.

Many               properties               are               priced               below               $5000.

However,               the               average               listing               price               is               approximately               10-percent               below               market               value               compared               to               other               homes               on               the               market.
               One               option               to               purchasing               bank               owned               foreclosures               through               Century               21               or               other               realtors               is               to               seek               out               private               real               estate               investors               who               specialize               in               buying               and               selling               distressed               properties.

Some               investors               buy               bank               owned               real               estate               portfolios               consisting               of               multiple               properties.

Buying               in               bulk               allows               investors               to               purchase               properties               at               wholesale               prices               and               pass               their               savings               along               to               individual               buyers               and               investors.




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