What About Short Sales…? They’ re Hot too.
If you’ve been to this site before, you already know that I am a big fan of Duplexes… especially the “REO or Bank Owned” type because they are for the most part deeply discounted from their highs from years past.
The dis-advantage to a Bank Owned or REO deal is that, while you get the property at a dicounted price, there will be that “as is” thing they insist on and with rare exceptions they don’t deviate from it. You get these deals with the property vacant, which means you have to go in and do the “fix up” to get them in a “rent ready” condition. If you want to see what an vacant REO/Bank Owned property can look like, go here.
Now even “Short Sales” are becoming a great deal because the banks are now more willing to complete them in a timely manner.
OK… Why do I say Short Sales are Hot Too…?
Well, for starters, most of the time in a Short Sale the property is still occupied by Tenants. The trick is to get one that has “rent paying tenants”. However, even though the case may be they are not paying rent, this could be the result of the tenants having been notified that a foreclosure is pending and they are holding funds in case they have to move. Or… the current owner has just abrogated the responsibilty and is not even making an attempt to collect it.
Either way in most cases you can work a deal out with the existing tenants to have them stay. Now keep in mind when an owner is in this situation, you will probably run into an old “deferred maintenance” issue that has been neglected by the current owner which, if resolved by you, will go a long way in keeping the tenant there and happy to stay.
The advantage then of keeping the tenant there is that you will not have to go in and spend the extra “bucks” to re-rent the unit.
And Finally.. the best reason to go after a Short Sale now is you still get the same “discounted” or “market price and that Lenders are beginning to approve them much quicker than in the past. How cool is that…?
If you want a list of REO/Bank Owned & Short Sales…?
You’ve come to the right place. I’ve analyzed both types and prepared “pro-forma” Cash Flow figures for each one on this page. I’ve got videos too on some of them. If you book mark this page, you will get updates as I go out and view these properties and post the information.
Make it a Great Day.
Ed Favinger, Broker, CRS, GRI favinger@rwnetwork.com 916-203-1260
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