Tagged: REOs

Nov 02

Detroit Home Price Gains – Too Hot or Just Getting Warmed Up?

Are Southeast Michigan home prices rising just too fast, or is this just the beginning of a new era of prosperity for the region?

The latest data from the S&P/ Case Shiller Home Price Index which is often more conservative than other indices shows regional home prices rising 16% in the 12 months through August 2013. That’s 26 months of positive gains.

Some reader and attention starved media channels and voices have suggested area home values are rising too fast, even though 16% a year is hardly an overly rapid pace in this industry.

Ironically, looking at the hard data Michigan real estate could be among the healthiest and best value in the country. Those that sat on the fence and haven’t gotten into the market may not be happy about missing out on some of these great gains. Yet, fortunately they may still have a chance to grab a great deals on a home or even make some incredibly money investing in real estate here.

It’s true that there are still lots of foreclosures in process, though maybe not so many REOs as delinquent mortgages still gradually working their way through the pipeline. These defaulting home loans and foreclosure homes are not much of a danger to the market any more. In fact, most real estate investors wish that there were a lot more of them to buy.

For the pessimists out there is important to point out there are still great discounts to be found in the Michigan real estate market, and based on historical real estate cycles there could be another 15 years of growth coming. In fact, according to the latest Case-Shiller report the greater Detroit area is the only one of the major metros covered still below 2000 value levels.

With all of the development and investment going on to rebuild Detroit we could finally be seeing a glimpse of a new era of prosperity becoming a reality. Why not be a part of it?


Sep 21

How to Beat the Competition to Better Deals on REOs

Real estate investors in many areas are reporting that
bidding wars over REOs are getting out of control but the savviest investors
are finding ways to leap frog the competition and find more profitable bargains
on distressed property and mortgage notes.

Where the Deals are

In some areas of the country investors are increasingly
complaining that the competition is pumping up the prices of REOs as large and
small investors battle over deals.

Going head to head for these homes does little good for
anyone involved. It wastes precious time and resources for those who lose and
those who win contracts often pay more than they hoped, diminishing returns.

However, there should be no need for this. Foreclosures
continue to surge by 20-30% or more in a number of states and while some
experts say shadow housing inventory is dropping Morgan Stanley analysts still
estimate almost 6 million off-market properties are lurking out there to be
slowly dripped onto the market.

It’s all about knowing how to get to these off-market
distressed properties and REOs and connecting with the right decision makers to
lock up their inventory before they put it up for bidding wars to the public.

The Secret for Tapping into Off-Market Deals

The most successful and profitable real estate investors
today are utilizing new software for identifying and honing in on the banks
which have this inventory to streamline their searches, maximize their time and
ROI and beat out their competitors.

Clearly this means less competition and less competition
means bigger discounts and spreads and higher returns as well as the luxury of
more time to complete due diligence.

BankProspector is one of the most respected software programs offering  fast                                and easy access to this data, including information for buying residential REOs,                         finding distressed multifamily properties, distressed commercial property notes                           and for direct contacts to those who can make deals on them.