What is a Foreclosure?
A Foreclosure, otherwise known as a REO or bank-owned property, is a property someone failed to meet their required payments and the lender has foreclosed on the property, this is similar to a repo in the auto industry. These properties are sold at a steep discount “as is” mostly to investors who fix them and either hold them as a rental or flip them to make a profit, the ones in good condition can also be sold to a normal consumer who is looking for a better house then their budget might allow them. Some of the lenders even give a 5-15 day period of time for owner-occupied buyers to get in before the investors, this will allow the normal consumer an advantage over the savvy investors.
What is a Short Sale?
A Short sale is a property that the owner owes more on the property then it is worth on the open market, their agent has already talked with the bank and the bank has agreed to listen to short sale offers instead of foreclosing on the property. These sometimes can take much longer then a normal sale or even a foreclosure sale. Just when you think the property is yours the bank might decide to put it up for auction to see if they can get higher bidders. This makes for a very frustrating process for any buyer but if the deal goes through more than likely you are getting the property for a steep discount. These properties also tend to not need as much work as a foreclosure because the owner is involved in the process and knows the bank is helping them.
What is a Distressed Property?
A distressed property is a property that is in bad or even horrible condition but is being sold significantly under market value, most of the time these deals are going to require cash offers and need major repair work. For the right investor these can be huge money makers but they also can end up becoming a money pit.
What is an Estate Sale Property?
An estate sale is a property that has been left to an estate and the family has decided, or was directed by the will, to sell the real estate and split the proceeds to pay debts with the remaining money to be inherited by the surviving family members. These properties can be a mixed bag. Family members may believe the property is worth more then it is while others might want to price it low to sell it fast, these can be a good investment because they tend to need mostly cosmetic work although this is not always the case.
Want to Learn More?
If you would like to learn more Ian is here to help, he has an extensive knowledge of these properties and how to find them. Not all agents deal with these types of properties because it is not always a glamorous house. As an investor himself Ian knows how important these sales can be to his clients and how important they can be in helping to restore the community.
Fill out the simple form and Ian will be in contact with you to help you decide if this is an avenue you would like to explorer, if it is Ian will help you not only find these properties but the right property for you.
Don’t have the money to invest? Ian has connections to some of the best traditional and hard money lenders in the area and out-of-state.
Don’t let money hold you back from your dreams!