BUYING The New Class Of Bank Owned Property (REO)

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BUYING The New Breed of Bank Owned Property (REO)

When most people hear the term bank owned property (REO), they think of a house that needs a total renovation and don’t even consider looking at the property.   Yes, banks are in the money business and some banks particularly here on Long Island are getting savvy and realizing they could make money by selling their REO’s (real Estate owned) properties to end users by fully or partially renovating them.  This is not good for the investor but opens up a few more properties for the Long Island buyers who are feeling the effects of the current low inventory.     The process of buying an end user friendly REO is similar to a traditional sale in some ways but not all because you are dealing with a corporation not a homeowner.     I would recommend dealing with a realtor and attorney that is experienced with these types of transactions because banks are all business everything has to be prepared just right when you present your offer. Just leaving out one document from the offer package could have your offer rejected and reduce your chances of securing the deal.  Unlike buying a bank owned property that needs a lot of repairs and nontraditional financing (reno loan) these REO’s do not.   So, if you are looking in an area with low inventory check out some bank owned properties (REO’s) and see if they have been renovated.  You might just find the house of your dreams.  

Transcript of Video

Buying a bank-owned property is not like it used to be my name is Mark Schreier

and I'm a licensed sales associate with century 21 American Homes Real Estate

right here in Long Island New York besides specialize in an REO is bank

owned properties and traditional real estate sales I have been exposed to a

new breed of bank owned property most people when they think of a bank owned

property they think of something that needs a ton of work a hundred thousand

plus dollars a work kitchen bathroom floor and roof and everything needs to

be replaced and those are still out there in this video I'm going to share

with you the traditional REO the traditional bank owned property that

you've probably seen and if you're not investor maybe you haven't so take a

look and it's a lotta part of the video I'm gonna share with you the new breed

of bank owned property it is a totally refurbished property that all you need

to do is bring your furniture and your toothbrush and you're ready to move in

this is a great option for people who will look at in neighborhoods and never

considered looking into the re owes a lot of real estate agent don't realize

that bank owned properties could be something their buyers are looking to

buy but usually most Realtors don't understand that some banks even though

they're in the money-making business which they are are starting to get savvy

and dabble into the renovation business as well so even though this these

properties are keeping the REO or bank owned property title they're actually

end-user properties that do not need special financing for you to move into

so stay tuned to the upcoming video please give me a thumbs up if you like

it definitely leave comments in the comment section below and don't forget

to hit the subscribe button and the bell for notifications thank you

as you can see this is probably what you expect when you hear bank owned or

foreclosed property the house needs a lot of work also known as a fixer-upper

handyman special depending on your level of handyman the power's out everything

needs to be redone and updated you're in a town you'll have a desire to be in and

that's a plus for you if you like to do work or you want to flip something then

this is the type of property you should be looking for but if you stay tuned to

the latter part of this video you're going to see the new breed of bank owned

property or REO this particular house is gonna need a renovation loan with all

the work that needs to be done and what that basically means is you're going to

get whatever you buy the house for this one is I believe about 503 asking price

so if you get it for around that price then you're gonna have to take out a

loan to fix it up so you're gonna have to with a contractor and the mortgage

company decide how much money it's going to take to make this livable to your

liking and then get pre-approved for that amount of money and as the process

goes through they will come and inspect and pay the contractor piece by piece as

they do the different ends of the project so this is a traditional or the

old school bank owned properties and if this is for you it's a great way to move

into a neighborhood there's not so much inventory then this is something you can

consider if you have a contractor that you hooked up with or if you're an

investor and stay tuned again for the latter part of the video and you will

see what the new breed of REO is and that's one way you're not going to need

well you're not gonna need a renovation loan you could just move right in okay

so I mentioned a new type of REO or bank-owned property this is it this is a

fully renovated bank owned property still an REO so for those of you who are

end users this is something you can consider when you're looking in a

neighborhood for properties and the inventory seems to be low don't cancel

something out just because it says bank owned or REO in the description I'm

gonna give you a quick tour of this house and I'll let you judge for

yourself okay as you can see everything has been updated from the brand-new

paint to the crown moldings to the kitchen you can hear the smoke alarms

chirping away these stainless steel appliances nice backyard I'm gonna take

you on a brief tour of the property this is a split plenty was known for having a

lot of splits brand-new wall-to-wall carpeting updated bathroom and yes it's

been winterized one bedroom excuse the chirping everything's been

updated walls paint again crown moldings upstairs we have three bedrooms this

being the master in wall AC unit radiator heat and this is the master

bathroom with a full shower new tile everything has been updated and as we go

back down

okay so in closing we can see the new breed or the new type of REO out there

definitely not investor friendly but definitely end-user or first-time

homebuyer or that move up homebuyer it opens up inventory that hasn't been

available to you in the past so make sure you ask your real estate agent can

you please show me some end user friendly REO s and if they're not sure

what you mean you could definitely reach out to me we have new products new

inventory coming on the market every day I service predominantly Long Island but

I have a referral network that goes in the tri-state area with these renovated

REO s so I hope this video was helpful and thanks for watching