You’ve probably heard the real estate market is tight. Supply is low, the cost of money is super cheap (aka interest rates are low), and investor demand for cash flowing real estate has driven prices up. In other words, good deals are hard to find. So what’s a real estate investor to do?
Many would lead you to believe that you have to look “off-market” or beyond the MLS to find a diamond in the rough. Tactics like “driving for dollars, “bird-dogging,” and direct mail “yellow letter” campaigns are pitched as ways to find motivated sellers who prefer quick, no-hassle closings instead of getting top dollar.
But before you start down that laborious road, consider checking out REOs. REO stands for real estate owned – properties owned by a bank or government agency acquired through a foreclosure. These properties are always vacant, open for inspection, and often priced attractively. Better yet, the entity selling the property highly motivated to get it off their balance sheet.
TOP 4 PLACES FOR GREAT “ON MARKET” REAL ESTATE DEALS:
- The MLS – simply create a search for “lender-owned” properties. You can also search directly on a bank’s REO website. Wells Fargo, Bank of America, CitiMortgage, and many local banks have their own REO websites with the current inventory.
- HomePath.com – the official website for Fannie Mae owned homes. HomePath has, by far, the largest inventory of REO homes for sale. They offer single-family homes, multi-family homes, condos, and manufactured homes. A great feature for investors is an integrated rental estimate from RentRange. And some of the homes have been rehabbed with appliances, fixtures, and flooring through affiliation with Home Depot.
- HUDHomeStore.gov – the official website for homes owned by the US Department of Housing and Urban Development. All HUD homes come with a property condition report that lets you know the condition of the property and mechanical and what repairs may be needed. This is an auction website where bids are opened and reviewed daily.
- HomeSteps.com – the official website for Freddie Mac owned homes. Inventory is the lowest here among the government agencies so deals are less prevalent but competition from other investors may also be less.
Contact us at 617-615-9420 if you’d like to place a bid or make an offer on any REO homes in Massachusetts.