Ok so back to what I was saying before. There’s one last key element that most new investors are missing, and one that all seasoned investors have. And that element is relationships. Think about it. Would you rather sell a house to a friend of yours who have done many deals with you in the past that you know will close on the sale, or sell it a random guy you never met before whom you have no idea if he/she is going to actually close.

You see where I am going. There’s only so much you can do on paper. You can have a great offer, a great price, good terms, basically everything a perfect offer would need – but still, you will be cut out. So the question is, how do one build this credibility and gain the trust of the broker to receive some great deals. Well that’s actually easier than you think; just do more deals! When you actually buy the house and close on it, it tells the broker that “Hey, I am for real here. I want to buy more properties and an you are going to make more commissions”. When you continuously close on homes, it’s only natural that a relationship builds between you, and the source of those properties. (If not, try getting to know the brokers/source more. We are more than just a business front. We are people, like you as well!)

“But doesn’t this mean I will have a disadvantage if I am new to submitting offers?”. Quite frankly, yes. It will be less likely your offers are accepted over others, but real estate is relationship building business, and relationships don’t happen overnight. (Unless you believe all that stuff in the movies) It takes time, and even if you are at a disadvantage, you WILL eventually get an offer accepted. Submit 100 offers using the rules I set forth in the previous post and I could bet you that you will get at least one accepted. It’s all about that first deal. Get it done and get it done ASAP. Afterwards, everything will start coming together. It’s like the initial energy needs to begin a chemical reaction.  (If you can understand this analogy) It will be hard to begin, but as it starts moving along, things will get smoother and more efficient.

People everyday ask me: ”How do you get offers accepted by the bank owned real estate broker?” I tell them, “You need to make sure your offer is priced correctly”. But in reality, it’s far more complex than that. There’s a variety of things that will aid in your quest of obtaining a property and here I will reveal to you what they are…

1. Pricing – Be reasonable and think a little. If a house just came on the market yesterday for $100,000, and you low-ball them a $70,000 offer, chances are, your offer gets trashed and so will your credibility. Now I am not saying to lowball, but only do so when it’s the proper occasion. The previous would be a bad example of when to lowball. It’s hard to believe, but the Lenders also have minds and they place smart people in charge. They know that when they first put a property out, they would not take the measly low offer because they are testing waters. Plus, chances are likely that there are already many more offers higher than yours. So don’t waste your time and the realtor’s time submitting offers that will never go through – especially when properties first hit the market.

Now if you want to lowball, do it on the homes that sit on the market for 3 months or more. Keep in mind, the banks still want to get these suckers sold, so when you see a property just sitting on the listings without any action, give them an offer. Chances are A LOT higher that they will accept a lower offer in this occasion simply because they aren’t getting any other interest and therefore, no other offers.

2. Proof of Funds – When buying bank owned homes, this is a must. If you do not have this one piece here, stop all procedures and acquire it first. Otherwise, you are again wasting your time, and other people’s time and probably killing trees in the process. Lenders, asset management companies and even the broker’s will not even pay attention to your offer if you do not have a proper Proof of Funds. Now Proof of Funds can come in a couple forms. It can be a copy of a bank statement showing the money available in cash. It can be a pre-qualification letter by a lender for a mortgage. It can even be a letter authorizing an individual access for a certain amount of cash (of course must be secured by real funds). Most lenders prefer cash proof of funds and payment in cash. Why? Well, because it means they can get their home sold faster and easier. No mortgage work and none of that non-sense. It’s just a straight up As-Is sale. So if you are looking to offer to bank owned homes, please make sure you have proof of funds. If you got the cash, great, get it in writing (black out your account number). If you have friends who got the cash, great as well, get it in writing. If you need a mortgage, go to a mortgage broker and get a pre-qualification letter ASAP.

3. Outrageous Terms – These are bank owned deals, so you know the lenders want them gone, but again, these guys that did a number on our economy can still process and analyze information. Therefore, if you put outrageous terms in your contracts, you might as well not submit an offer at all. Here’s some examples of outrageous terms…

A. 30+ Day Inspection Period – Now 30 days is already really pushing it. Unless you got some previous background on the deal, don’t ask for more. You will more than often get denied.

B. Assign-ability - Just make sure this is checked as no. The assigning days of these contracts are long gone. Sorry, you missed out! You check mark this box and your offer becomes a paper basketball.

C. Tiny Deposit Amounts – Ten bucks ain’t gonna cut it here. In South Florida, it’s normal to see $1,000-$2,000 deposits on 50K-120K homes. Make sure you have a proper deposit on the line, otherwise, the wills think you are just fooling around and pay no mind to your offer.

D. Far Away Closing Date – Don’t close next year… Banks want homes gone Fast. You put a closing date that’s months away, and even if your offer is better, they will take the lower one who wants to pay up in the next 3 weeks. Make sure your closing date is within feasible range. 30 days or about a month is standard. You can put less if you really know what you are doing or if you really want to buy that particular property.

So what else can you do to make sure your offer get’s accepted? Well, that’s for the next article. There’s one last key element that can get you the good deals and cut your competition out. We will go over that next time.

Nowadays most of the people are mainly concerned about foreclosures properties and the reason is that these properties can be purchased at much low price. Now why this foreclosure is declared to a property? Because when the owner of the house takes some mortgage and fails to repay the mortgage then the property is owned by the lender and declared as foreclosure auction. Moreover if no one purchases this type of property in the auction then the property is again send back to the lender or to the bank who have initiated the mortgage loan. The property that comes back to the lender or to the bank is called as REO property means real estate owned properties or Bank Owned Homes.

There are numerous companies that deal with this type of properties, and among all one of the most famous and reputed company is the GSIG LLC which is one of the most specialized company of South Florida that deals in REO homes and asset management and also deals in post foreclosure properties. This is a company that assigns houses to the realtors who are listing agents of the asset manager like bank. Apart from this the realtor also has to submit broker price opinion (BPO) to the asset managers. To decide this broker price opinion realtor play a vital role and also they decide what will be the amount of the particular property in today’s Real Estate Market. The broker price opinion is decided by taking certain things in account like the cash offer price.

Usually the REO properties are sold against cash, the lenders or the banks don’t accept their payment through any other medium. They only sell such type of properties to the people who want to purchase through cash. Normally the people who agree with the norms and the condition have to submit an application which is known as “proof of funds letter”. This letter will make sure to the bank that the person agree with the terms and conditions and possesses sufficient amount of money in cash to purchase the property.

The real estate firms like GSIG LLC will do the rest of the work, like they will submit the BPO to asset manager on your behalf at the bank. According to this price quotes the bank comes to know about the price that should be quoted for the property according to realtor. It completely depends upon the asset mangers whether they will agree with the list or not, but if the price is quite higher in comparison to BPO then they there might be chance that the asset manger agree with the quoted price by the realtor. For further details regarding REO homes you may visit Bank Owned Homes. Here you will get all the latest updates regarding the properties that are going to be sold.

So you might have been noticing a substantial number of “bank owned listings” entering the market lately. If you are looking to buy a home, well this is your time.

Now if you are not familiar with bank owned homes, let me be the enlightener. Bank owned homes are basically homes that have been foreclosed. Say a homeowner cannot afford his payments anymore and stop paying. The bank or lender would than follow through by filing foreclosure on the property to get possession of it. Once the previous ownership of the home shifts from the previous owner to the lender’s, it than becomes what is known as a bank owned home.

So far, not much positive info huh? Well, this is where the good stuff kicks in. Praise to you with the resources to be able to buy a home in this market. There are a ton of bank owned homes hitting your local property listings and even more so filed every week. When you have this many properties, it drives the prices of the homes down considerably. Hence, we see the real estate market collapse. But because the prices are so low, you can buy awesome homes for incredible prices. Right now, real estate investors are making a killing just buying old beat up homes at literally pennies on the dollar and flipping them over at retail price. When I say pennies on the dollar, basically, they are buying homes worth 200 thousand dollars in TODAY’S market for less than 50% of the market value.

But what does this all mean to you? It means you are in an excellent position my friend. You are in a buyer’s market and you want to buy a home! All of those million dollar mansions are now half the price so if you always wanted one of those, well start shopping because the banks are itching to get those off their books. Buy, baby, Buy! buy! buy!

So now that we have established that the market is highly in your favor, let’s explain why you should and shouldn’t tackle a bank owned deal. First off, banks want to get rid of there properties. Wait, let me restate that. The desperately need to sell their properties! They have so many homes in inventory that they can barely hire enough people to sell liquidate them. So the banks price their properties at very competitive and sometime ludicrously low prices. But in exchange, they want things done on their terms and in their way. They are giving you a steal basically. Might as well play a little by their rules shall we not?

First off, a majority (a very large percentage) of bank owned homes are sold AS IS. Meaning there is no warranty on the home. You will need to get it inspected and properly looked over before committing to buy. “As Is” means what is means. It is sold to you as is in the condition it’s in, with or without the Chinese drywall. To solve this issue, get an inspector to look through all potential homes. Make sure they are licensed and insured – so if they botch up and miss the fact that there’s lead paint, you are all covered.

Secondly, cash up front or proof of financing. Banks are looking to get homes sold FAST. They will completely disregard your offer unless you have proof of funds or financing. Now if you got the dough to through down, all you would need is a bank draft or statement with the amount on there. And you are all set to start offering on properties. Now, if you need a mortgage, get pre-qualified first. Again, the banks are in it to sell their real estate fast and they have no time to waste waiting for you to get approval. Get an approval first and than start approaching the offering tables. But as a standard rule, the banks are the seller, and the seller has ultimate decisions on which offer to take. They LOVE cash offers and would take one any day over a mortgaged offer. Cash is just that much quicker and therefore, balances their books that much faster. So if you plan to low-ball them, and by all means please do, make sure you hit them with cash.

Lastly, get the price you want. This is a buyer’s market! There are tons of homes for sale. If the bank doesn’t want to take your offer, don’t fret. The house right next door or across the street may enter foreclosure soon and will be on the market later in the year. In this real estate market, anything can happen. The banks are not sitting on their high horse in the position of negotiating. YOU ARE. If the deal doesn’t suit what you like, walk away, chances are they will contact you later if the property doesn’t sell, and hey, you may even pick it up cheaper!

So if you are looking to buy, why not give us a call or check out our website. www.G-SIG.com 561.245.8843 x 205

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

- Warren Buffett

It’s no coincidence that Buffett, Trump and all of the millionaire tycoons make their fortunes in hard times. As history would tell us, after every depression, came a new wave of incredibly wealthy millionaires. What do they all realize? They realize exactly what Buffett said above.

Right now, the Real Estate Market has become a subject of fear. But for the investors who understand Buffett’s quote, the Real Estate Market has become a subject of wealth and opportunity. In fact, the Real Estate Market has never gave us such an awesome opportunity in history. Right now, the REO Home Market is, quite frankly, amazing. We have the ultimate motivated seller, the Banks. And not only that, but our motivated seller has A LOT of properties and homes. And we really mean A LOT of homes.

June 8, 2009, the number of homes in foreclosure skyrocketed to over one million. As of January of this year, RealtyTrac reported a total of 1.50 million bank-owned properties for sale. But that’s not all, the Bank are also holding out on a large chunk of Foreclosed Inventory, known as “Shadow Inventory”. This inventory is enormous, and can perhaps be as big as 80% of the inventory listed for sale. This is what Makes the REO Market So Huge and so widely available.

It’s an evolving real estate market and right now, its the REO home market that’s changing so drastically. So what exactly is an REO home? Well REO stands for “Real Estate Owned” which is an internal term banks use to describe homes that have been foreclosed and that are now under their possession. Essentailly, they are “Bank Owned” homes. The same way banks repossess cars and than sell them off cheap at auctions to cut losses is the basically what they are doing with their REO homes.

Except now they are in an incredibly bad situation. Banks are now handing many of these REO homes away for pennies on the dollar. Why are they doing this? Well because they can’t afford not to. When the banks acquire a certain number of foreclosures in their portfolio, they are forced to get rid of them else the government steps in and kicks the owners from control. The owners want to keep making money, so that’s the last thing they want – the government to control their money flow.

Right now, foreclosures are pouring in at a rate that banks can’t nearly keep up with. This has a lot to do with their selfish acts in 2002, 2003, 2004, and 2005, making a lot of bad mortgages that they knew was no where near possible for the people to actually pay. These bad mortgages however, increased their own lending power and stock value. Now its coming back to bite them and the entire economy in the butt. The hundreds of thousands of mortgages that were authorized by the banks were set to detonate in 5 years. This is why we began seeing the foreclosure bomb explode in late 2007 and throughout 2008. But that’s nothing. Our banks in their god awful greediness manufactured more of these 5 years mortgage bombs in 2003 than they did 2002. More in 2004 than they did in 2003. More in 2005 than they did in 2004. It’s a wonder why no one stopped them sooner.

But all is well. By doing this, the Bank has put themselves on their knees making them the ultimate Motivated Seller and with plenty to sell. This is why the REO Market is so spectacular. You can literally find REO homes for pennies on the dollar, if not pennies in your pocket. Banks, especially during quarter closing and the end of the month are just slashing properties from their portfolios to keep the government off their bakcks. And through all of the REO’s being tossed left and right, occasionally, there’s a Gem of an REO home tossed away as well. We here at ezREOhomes find those gems and put it in the hand of our investors, and in the hands of a proud homeowner.

Ok so let’s picture this situation. You live in a beautiful home with your family which you currently have a mortgage for. But during the real estate boom, you decided to buy another home at relatively outrageous price. As we all know now, that home’s price is anything but outrageously low,  but you still owe quite a bit on it.

Now you are paying mortgages on your current home, AND another property that’s worth almost 50% of what it was worth. Not to mention the economic times are getting tough and prices of about everything are going up except our properties.

Does it make any sense to shell out an additional one thousand? Two thousand? Maybe even three thousand dollars a month on a home worth a lot less than what you bought it for? No, not really at all.

But there’s a solution! It’s called a short sale. Yes I know this word pops up like a hundred times throughout the day and it may even have a bad connotation to it, but let me explain what it is exactly. A short sale is simply a deal done with the bank to sell the property for less than what’s owed. Often times, the original debt is than wiped out and the homeowner walks away owing no more money, and the bank recovers some of their losses.

Now I said “Often Times” because you need to work with a broker that knows what they are doing. Some real estate agencies will short sale your home, and than the bank still holds you liable for the remainder debt! So now you are out a property and you STILL owe money.

But we don’t do that at G-SIG. Hey, if you want to short sale your home, give us a buzz. You can stop the bleeding and stop forking over monthly mortgage payments for a property that really isn’t worth it anymore. And let me give you a broker’s insider’s tip. The market really isn’t going to pick up until another 3 years at least. Do your math. $1,000 mortgage payment x 36 Months = $36,000 minimum. That’s a lot of money that can be used for many other things.

Visit our site at http://www.G-SIG.com or find us on a variety of social networking sites and connect with us.

Or just pick up the phone and get in contact with us immediately. 561.245.8843 x 205.

First let’s clarify. What is an REO home? REO is an internal term used by banks and lending agencies to describe properties reclaimed after foreclosure. REO stands for Real Estate Owned and means the same as Bank Owned.

So what’s the deal? Well, if you don’t already know, the real estate market is at a collapse and millions of people have lost their homes due to foreclosure, so there are literally hundreds of thousands of properties that have been reclaimed by the bank.

What does this mean? Well it means that those who are fortunate enough to have funds saved up, good credit, and/or a steady income, they are now able to buy incredibly homes at 50%, 40%, 20% and even 10% of the market value. There are homes in Indiana listed at 1 dollar. Not kidding! A single dollar!

So it other words, it’s a Buyers market. Home prices are lower than they ever were before. And it’s an excellent opportunity to buy that home you always dreamed of or pick up that investment you always wanted.

G-SIG LLC, South Florida’s REO Broker, is one of the top REO brokers in South Florida. If you are looking for a killer deal on a home, please give us a call.

561.245.8843 x 205. We get dozens of bank owned properties ranging from large luxury condos to small cottages.

PRICE REDUCTION: 6BR/3BA Multi-Family in Fort Lauderdale, FL, $69,900

For Sale: 6BR/3BA Multi-Family in Fort Lauderdale, FL, $79,900

NEW BANK OWNED LISTING: 3BR/3BA Single Family House in Boca Raton, FL, $259,900

For Sale: 3BR/3BA Single Family House in Boca Raton, FL, $259,900

NEW BANK OWNED LISTING: 2BR/2BA Condo in Delray Beach, FL, $129,900

For Sale: 2BR/2BA Condo in Delray Beach, FL, $129,900

NEW BANK OWNED LISTING: 2BR/1BA Single Family House in Lake Worth, FL, $49,900

For Sale: 2BR/1BA Single Family House in Lake Worth, FL, $49,900

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