FAQ’s
1. What does REO mean:
REO stands for “Real Estate Owned”. An REO is when a bank owns the real estate, typically repossessed by the bank due to a default in the original owners loan.
2. Where can you buy foreclosures?
Please click here to see our concept on purchasing REO and foreclosures.
3. Why are you focusing on Southwest Florida? I heard that market has been most affected by the economic conditions.
This is true that Southwest Florida has suffered a great deal. Many people lost a lot, if not all of their “paper wealth”. The thing with SW Florida is that it crashed so fast and so much that homes dropped to very affordable prices. Economists projections have Lee County alone growing by 400,000 people by 2025, the biggest growth projection out of any small metropolitan area in the country. Homes have been selling quickly and inventory levels dropped from 33 months all the way down to 12 months in only 1 year, an amazing indicator of at least a bottom.
4. Do I have to purchase an REO cash, or can I finance?
We have options available for financing. To get a secure deal through financing it is best to deal with a wholesale group who has already purchased it from the bank. We provide those services.
5. What are today’s typical loan rates and terms?
Today, you can buy investment property in Florida for 20% down which is an 80% Loan To Value. Current rates are in the low to mid 6’s on 30 year amortized loans. If you are purchasing a primary residence, you have many more loan options.
6. Should I look for an REO if I am going to live there?
Of course. REO’s are the best way to get a great deal. Don’t you want a great deal where you live? Take your time and look at homes.
7. Will banks negotiate further?
In most cases down here and right now, no. Banks are currently listing their homes so low only to entice a bidding war among buyers. If you are making an offer on a foreclosure it is best to make your “final and best offer” right off the bat, or you have a good chance of losing it.
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