Gone are the days where banks are selling portfolios of homes to individual investors.  Typically if a company says that they are in the business of buying packages to get you the ULTIMATE discount, they are lying.  Well, at least most of them are.  Our relationships with 7 banks has been very strong for the last 18 months, however very rarely do we get an opportunity to buy more than 3 bank owned REO ’s at a time.

Although we have secrets on how to get bank owned homes at the same bulk discount price, I would doubt most that say they still get portfolios, aka, bank tapes.

According to a Fannie Mae representative when I asked when the next time I could get an opportunity on a 20-25 home package, his response was this:  “Why would we package homes and sell at 30-40% discounts from current market value when we can put them on the MLS and sell them for market value within 30 days?”

Hmmm..good point.  But that is what it is coming down to.  There is literally hyper-activity in Lee County with sales skyrocketing.  Since mid 2009, our median home price in the county has gone from $84,000 to over $100,000 today.  Show me another market in the country that went up 16% in almost one year.  Lee County is prime real estate right now and the window of opportunity will be gone in 12 months for those that want quick turnovers.  (That is my opinion, and I’m sticking to it!)

We acquire and sell dozens of homes per month and we have 2 programs for our real estate investors for Cape Coral and Lehigh Acres homes.

The first program is the FLIP concept.  That’s right.. Bet you never thought that phrase would be in the same sentence as “real estate” ever again.  I’ll give you a hint.  Have you seen the marginal difference in prices between cash based buyers and those that use FHA or USDA financing?  It’s over 20% difference.  Almost 40% difference in some areas.  You won’t find a GREAT deal if you are financing.  Won’t happen.  I am a seller and also a buyer.  As a seller, I am making way more money holding my property for 30-40 days longer selling to a buyer using financing.

Most realtors don’t know this.  Heck, most don’t know how to even look up lein / mortgage records.

The second program is the “End-User Investor Program”.  Get your pens ready and remember this.  This is known as your “buy and hold” strategy.  Put down your pen.  You didn’t need it.  It’s not science, just timing at this point.

We are one of the strongest in the local housing market at getting great deals for our clients.  We are a licensed real estate brokerage and investors ourselves.  We offer a turnkey solution to investing.  We purchase the homes with our money and do the rehab work with our money where we wholesale out.  It’s seemless and simple.  Contact us today if you are interested in being successful in Lee County Real Estate.

Some extra TidBits:

TRUTH:

• USDA and FHA do not have the same strict seasoning requirements as they used to.
• FHA appraisers require all mechanical systems to be working.  Be sure garage door is accessible.  They need to take a picture of it half-open.
• You can buy a house for $50k to $65k and sell it for $85k in 60 days.  We are doing it over and over again for our investors.  Proof upon request.
• Chinese Drywall is defective and kills your value.  Don’t touch it.  Some agents will convince investors to buy cheap and remediate the problem using a drywall company.  Try selling a house on the market where you have to disclose “House was treated for Chinese drywall”.. You have to disclose it and it will sit for sale FOREVER.

MYTHS:

• I should just call a retail agent and get a home listed in the $50k range.  Why should I use you?  Answer:  Banks recommend to their agents to set the price low to trigger a bidding war.  If you want to waste a lot of time, these are good to go after then.  On average, REO homes sell for much higher than what they are listed for.
• Short sales are not a way to go.  Our response:  Short sales are one of our favorites.  We assist in short sales with homeowners making an immediate cash offer and pairing them with a local real estate attorney.  Our process is quick and we get great prices.  Takes time, but more margins.
• I cannot finance an investment property.  Response:  Yes you can.  There are 75-80% LTV loans for investors with good credit and reasonable debt to income ratios.

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