If you are interested in investing in any of the Real Estate Owned property in Atlanta GA then you are at the right place. For we have put in place real estate agents to assist you in the buying and selling process. Our properties do not usually last long on the market.
There are numerous real estate investors who are flipping bulk REO tapes for quick profits. On the other hand you will also find that there many savvy real estate investors who are buying bulk portfolios to hold. These real estate investors have instituted that by so they can make MASSIVE profits by using the same technique some car dealers use. They use a “Buy Here – Pay Here” approach.
Providing proprietor financing to a market segment who cannot get a traditional loan is proving to be a market with huge potential profits. To be aware of how these investors are profiting, you must first know the concept of a “Land Contract”.
A land contract is a contract among the buyer and a private seller of a property, where the seller will hold the name or the deed to the property until the property has been paid in full. “Using the Land Contract, the saver will sell the property “AS IS” to the new buyer.
Many times the investor will sell if for only 10-20 percent on top of what they paid for it. The explanation for this is because the price appears very attractive to the buyer because they are getting a house technique under market value.
The investor in turn on the other hand will offer a to some extent higher than market interest rate to the buyer, as the transaction is one that provides a NO BANK FINANCING opportunity. Since owner financing is obtainable, there is a much wider pool of prospective buyers. Remember that the payments to the new buyers are motionless cheaper than paying rent. This means investors can put up for sale their properties very fast.
Can you picture if you were a “traditional” buy and hold investor trying to rent out one of your investment houses in the same area as where a bulk REO investor comes in, sells the house next door for a smaller amount with payments cheaper than rent? This is one of the reasons why these investors can sell houses quicker than normal.
The only disadvantage to this type of investing strategy to a new investor is that they have to buy at least five properties at a time to have a benefit of getting these types of discounts from the banks. The investor on the other hand really should not be nervous, because anytime you can get a house at 25% – 45% of Loan To Value, there is not much danger at all. Average properties found in these little bulk portfolio pools range from 21,000 to 25,000 dollars. How does it works out for an investor.
Let’s take a look at some examples of deals which are only representations:
2112/2114 Delachaise, New Orleans LA: sell in 73 days sell at $29,353.00, 16 year mortgage @ 9.9% Monthly credit payments are at $300.00
107 Paisley Drive, Williamston SC, sell in 123 days sell for $56,206, 20 year mortgage @ 11% Monthly mortgage payments are at $574.00
310 E. Trail St., Jackson MI, sell within 67 days sell at $41,796, 13 year mortgage @ 9% Monthly mortgage payments be at $450.00
1079 Arlington Ave., SW, Atlanta GA, Sold in 74 days sell at $40,227, 10 year mortgage @ 10% Monthly mortgage payments are on $525.00
The question to ask yourself is this investment strategy for you? Does it make sense to buy investment properties in little quantities for pennies on the buck, while enjoying the same bulk discounts that main players receive when they buy 8 Figure Bulk REO packages from big banks?
Little Bulk REO investing seems to be the respond. Making above average cash on cash return has on no account been easier.