Finding a nice Fixer U
Fixer Upper
pper these days is tougher than finding an honest banker on Wall Street!! That’s why we wanted to share some of our keys to success in finding Fixer Uppers for our investors. Despite the decline in the number of Foreclosures in most markets, they still represent a ideal target for rehab and flips. These are some of the areas where we search for Fixer Uppers:
1) Short Sales: Since banks are netting much more money on Short Sales they are offering Relocation Incentives for underwater Home Owners to move out of their home with a Short Sale. As recent as 2012, it did NOT make sense as an investor to focus on Short Sales since the approval process was a lengthy nightmare. But we managed to get a Wells Fargo Short Sale approved just in 12 days since the bank sent the appraiser to the property!
2) Seasoned REOs: Even though REOs are selling at market prices, they still represent a decent opportunity for the investors who know how to negotiate with the banks on these sales. But you need to write your cash offers with the right incentive to the bank and then request Credit For Repairs.
3) Craigs List: Some owners have taken the initiative to market their own home on CraigsList. Granted there are no clean ways to set up Search Agents here, but when the inventory is as tight as it is now, any source of properties can NOT be ignored.
4) FSBO: For Sale By Owner properties also offer opportunity to pick up a fixer upper that might be a good candidates for flips. Our recommendation is however, to have a Realtor draft the purchase contract and help you with the escrow.
4) Auctions: If you are living in a Trustee Sale States such as California, Auctions also represent a decent opportunity to purchase Fixer Uppers for cash. We have developed series of articles on potential of winning at auctions in different cities including San Jose, Los Gatos, Los Altos, Redwood City, Milpitas just to name a few that you can read.
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