Finding a nice Fixer Upper these days is tougher than searching for Bin Landen’s body in the Atlantic Ocean!
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) Seasoned REO Listings: The longer an REO property stays on the market, the more chances it has for price reductions since Each Month the List price is reviwed and adjusted downward. Also, closer you get to a 90 Days on the market for an REO, everyone in the food chain is anxious to get ride of the property which is very good for you investors and buyers.
Why 90 days you ask!? Because the Listing Term for the REO is 90 days and the Asset Management Company could lose the property to an auction if it’s NOT sold. So, they are anxious for a deal and so is the Asset Manager at the selling bank along with the Listing Agent who needs to protect his/her commission after 90 days of work.
2) Craigs List: Some owners have taken the initiative to market their own home on CraigsList.
3) FSBO: For Sale By Owner properties might offer an 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. Some sites such a Foreclosure Radar offer good information on the auction schedule and if you get subscription of $45 per month, you can also track a property through the Foreclosure process which could take as long as 120 days or more.
5) Short Sales: Some banks such as Wells Fargo have finally figured out how to process Short Sales in timely fashion. In fact, our last Wells Fargo Short Sale was approved in 12 days which is amazing compared to some of our record breaking Short Sales that took more than 400 days.
Contact us if we can help you find a Fixer Upper since we are constantly marketing for seller in Silicon Valley.