Hot Bank Owned Properties – Sacramento – Cash Flow Opportunities

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            916-203-1260

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Bank Owned or Short Sale Investment Property – Good Time to Buy – See Why Below

Have you ever heard of “Supply & Demand“..?

If you are on still the fence about buying an investment property in the Sacramento Region, I thought I’d update you with a forecast from Marcus and Millichap that they came out with.  

They’ve analysed several markets all over the country.   You can read the artcle yourself below.  What they don’t tell you is in the conclusion that in the future,  there will be upward pressure on rents along with prices when the economy picks up.   Why…? Nothing has been built in this area lately.  

You can read the entire article but here’s the most important part as regards new apartment construction in the Sacramento Region.   “Completions are expected total fewer than 100 apartments this year. No units were delivered in 2009.”

U.S. APARTMENT ROUNDUP: Marcus & Millichap Sees Sluggish First Half for 30 Multifamily Investment Markets

Mortgage interest rates are low and prices,  while they have stabilized in the Sacramento Region,  are still depressed because of the weak employment picture  here.   When the un-employment rate finally starts to goes down… folks that have been doubling up with relatives or roomates will want their own place.  

So if you are investor, now is the time to jump on a Bank Owned or Short Sale Duplex, Four-Plex or a Single Family Home.     

Take a look at some of the inventory out there now by clicking here.

Remember….   If you believe in America this economy is not going to last forever.

Make it a great day…!

Ed Favinger,  Broker, CRS, GRI            916-203-1260

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Bargain Prices Lure Homebuyers in February – Sacramento Business Journal:

Just One of many homes for sale in Folsom, CaliforniaGood News in The Hunt for a Home.

Hey.. Looking for some good news…?   Well here’s some.   Take a look…  I ran across this article regarding New Homes Sales in the region that was in the Sacramento Business Journal.

Bargain prices lure homebuyers in February – Sacramento Business Journal:.

Make it a great day.

Ed Favinger, Broker, CRS, GRI            916-203-1260

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