You want the best deal on an REO home in Louisville? Act like Jack.
Be Nimble
Real Estate investing is not like dating. You do not want to get emotionally attached. This is a financial transaction only. If the numbers do not make sense, walk away and find a different home.
Be Quick
Louisville foreclosures sell quickly. Multiple offers are common within days if not hours. Some investors even submit bids sight unseen in hopes of getting lucky. (In general, this is not a good strategy). To get the best deal, you have to be prepared.
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Pre-approval is critical. Banks won't accept offers without pre-approval letters and you don't have time to get pre-approved after you find the house. Do it now.
Knowledge is power. The more you know, the better your chances of getting the best deal. Learn home prices in your area. Spend a few hours at a hardware store studying material prices. Call contractors and get estimates based on $/sq ft. Most importantly, find a Louisville real estate agent who has bought - sold and/or rented investment properties. By knowing the expected sale or rental price as well as the estimated cost of repairs, etc, you can make an offer quickly and confidently.
Don't Get Burned
You are not just trying to jump over a candlestick. Buying investment homes can be challenging and more than a little intimidating. You are putting a large amount of money at risk on the hope of earning a good return. A good real estate agent will help protect your interests.
Don't Wait Until the Flame Dies
Now is a terrific time to buy an investment home. Foreclosures, short sales, and tightening lending standards have converted would-be homeowners to renters for some time. Increased demand will raise rental rates. At the same-time low interest rates and tax credits are driving some people to buy homes. Most buyers (especially first time home buyers) want new or updated homes. You can offer that with an investment property.
If you wait until the ‘market recovers,' you will miss the best deals. The risk will decrease, but so will the potential reward. Don't let fear paralyze you. When you are ready to seize this opportunity, call me (502-921-3989) and I'll help you get started.
See Also: Why you Should Buy a Louisville Investment Home
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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.
I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Middletown, Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley. Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes
Good advice. When priced right the REO's do go fast and multiple offers are common here. under such conditions
Evening Erik - solid advice. Thanks for posting and keep it up!!!!!
Cheers
Renee - I've seen it time and time again. A buyer wants to wait until they find the right house before getting pre-approved. By the time they have the letter in hand, the house is under contract.
Fredyt3 - Thanks.
Erik, love the post, and it is great advice anywhere that there are a large number of REO homes and bargain homes!
T&D - Thanks. I believe buyers are going to look back at this time and kick themselves for not taking advantage of their opportunities. Hopefully, this helps motivate someone.
Excellent advice Erik. I like the analogy with Jack. As you said, a GOOD Real Estate Agent is important for this type of transaction.
John - As with anything, there is no substitute for being prepared. A knowledgeable agent will help make sure you are in the best possible position to succeed.
Erik we see the same thing here in Massachusetts. The bank owned homes that are priced very well move real quick.
Bill - Investors understand the values of these homes. They know they will get good returns and are taking advantage of the situation. Several people are positioning themselves to make a lot of money in a few years.