Buying an Investment property in Florida right now can be lucrative but it's not easy. Here is some information that may help.
If you want to purchase a Foreclosure you will not have time to look at the property prior to making an offer. The “deals” will have multiple offers within hours of being placed on the market. If the numbers work….go for it.
We suggest making strong offers and making them quickly. You may also want to make offers on multiple properties to increase your odds of getting one accepted.
However, the offers must be realistic. If the property is priced right we will not write offers for less than 97% of the asking price. It’s a waste of your time and ours.
Properties priced well will sell very quickly and usually with multiple offers. It is very common for them to sell for more than the asking (list) price. When you see a property you are interested in our job is to complete a market analysis to see what it is worth. We will then advise you on how to make an offer that will be accepted or at least considered.
- You do not have to be here to buy or close (complete) a purchase.
In order to make offers you will need POF (proof of funds) and the ability to wire a deposit in the amount of $2,500 to First American Title (escrow company). Your POF must be stated in USD (dollars).
Foreclosures are sold "As Is" with right to inspect. this means that once a property is placed under contract you have 10 days to have it inspected (surveyed). If you deem the property unacceptable after this inspection you have the option to cancel the contract at your sole discretion and get your deposit back. This 10 day period gives us time to thoroughly check out the property, on your behalf, including a complete interior and exterior photo shoot.
All offers are presented on a "As Is" offer to purchase contract that we prepare and send to you for signatures. This signed offer is then sent, with your POF and the confirmation of deposit, to the Seller's Broker. They present it to the Seller (bank). It will take the Bank any where from 2 days to 2 weeks, or more, to respond.
Their response can be:
- Acceptance
- Rejection
- Counter Offer
- Request for "Highest and Best Offer". This is normally how multiple offers are handled.
When your offer is accepted the Bank will send over a stack of addendum that will need to be signed/initialed and added to the contract. These addendum may have 5 pages or 30 pages depending on the Bank.
When purchasing Foreclosures “Time is of the Essence”. If you need time to think things over then purchasing Foreclosures is not for you. We do this everyday. Let us use our years of experience to help you get a good property at a good price.
Other than these things purchasing a Foreclosure is pretty straight forward.
That's it. I hope this helps. Any questions?
CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION
MAKE AN OFFER ON ANY FLORIDA PROPERTY LISTINGS HERE
MORE INFO FROM BROKER BRYANT... THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE
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Reserved Parking For "The Lovely Wife"...TLW...ROAR!
Blog Boy...
So this is what you're doing while I bust my bum to get us moved :)
TLW...ROAR!
It is
Someone will be sleeping in the dog house tonight - unless that is already on the moving van!
BB - that's a great explanation of what a buyer can expect in your market. I don't think you left anything out! :)
Now get busy helping TLW, lest you wind up UNDER the dog house!
So is this a sign of the bottom of the market? Multiple offers and no time to come see them? Let's hope so, Bryant! Now you can help TLW move. Have a great Memorial Day!
Sharon
Sounds like your market is smokin'. I didn't see a TLW counter offer under your list of options. You might want to prepare your buyers....
BB - once again you have provided an excellent TO TO list for buyers of investment property. We can suggest the same approach here as we are seeing many multiple offers.
Hope you and TLW have a fabulous Memorial Weekend.
Jeff
BB - glad to see you're setting the rules - i.e., you won't present offers less than 97% of the asking price of a properly priced property. If someone wants to make lowball offers based on a % of the list price of a property rather than its value, I'm sure they can find a lot of order takers.
Is it legal to not present a written offer? Just asking.
Bryant, this does not only not look easy, it looks like a real challenge on all sides of the transaction.
Bryant,
Simply put: Damn Good Advice!
I espicaly like: "When purchasing Foreclosures "Time is of the Essence". If you need time to think things over then purchasing Foreclosures is not for you."
Bill
Tammy, Of course it is if I'm working for the buyer. If they want to low ball properties then they have the option of working with a different agent. I'm in the business of helping folks purchase properties not wasting time. This is one of the reasons I wrote this article. Potential Buyers can see how I work. My job is to give them the facts. If their offer has no chance at all of being accepted then I would be harming them if I didn't tell them so. Make sense?
BB you may want to clarify that in your post. You won't WRITE offers for less that 97%. Otherwise it sounds like as a listing agent, you won't present anyone else's offer if it is below 97%, which is what Tammy is talking about.
Sounds like a really good market to me. multiple offers, offers must be a minimum percentage, great!
BB, you got it right. I am always in awe that you jumped in, figured it out and lead the pack with a SOLUTION to the dilemma. No whining from you.
Great post, as always.
I hope you and TLW have a great Memorial Day. Don't let her do all the work or you will singing a certain Hank William song... something about ... move it on over cuz the big dawgs movin in...
(I toyed with the idea of putting a Hank Williams Youtube for you, but... I don't think hijacking the post of the spouse of the greatest hijacker of all time is appropriate....)
More sage advice. It's amazing how many people don't realize that working with banks is a whole different ball game, no matter what the circumstances! Glad to see your written instructions for them. Hopefully we're getting the word out, one blogger at a time. =)
Bryant, good post. I could add a few more points to this, but the thing for a buyer to know is to use an agent familiar with the process to help them through it. Thanks!
Great and simple advise. I agree that making 97% off the asking price is not going to work! Not sure if that works in any market!
Multiple offers are back! Despite the bad press one thing we do have are investors in the 100K range who are actively pursuing property. In this range making your best offer first is always good advice as you do have competition.
For bargain hunters...these are the best times in years!
How fast do you get your buyer's deposit back? I've seen a few banks that take 30 days to process the release. But I'm with you -- write the offer fast at a realistic price, get it in fast and inspect upon acceptance.