Buy Distressed Real Estate

REIF Launches New Online Foreclosure Tracking Platform

Real Estate Investment Firm, LLC anounced Thursday July 2nd 2009 the launch of their new online platform for real-time status tracking of foreclosure auction or trustee sales sales in King, Pierce and Snohomish Counties. 

The website, buyWAforeclosures.com, also provides clients with detailed property information, photographs, property condition reports, lien and judgement reports as well as direct to property links to various county and 3rd party web sites such as zillow.com and google maps.

Access to the site is restricted to members or clients of Real Estate Investment Firm.  For information on becoming a member please visit Real Estate Investment Firm and register to attend one of their weekly foreclosure training workshops on how to buy foreclosures.  At the conclusion of the workshop attendees will be given a username and password to access the site.  Worshops are held every Tuesday at 5:30pm in their downtown Redmond, WA office.

REIF Investors Make Quick Profit Buying at the Foreclosure Auction

“Can we really make money in this real estate market flipping houses?”

We hear that question quite a bit around our office.  Usually it comes up on Tuesday during our weekly workshop for new clients & investors on “How to buy foreclosure auction homes, short sales and bank owned/REO’s”.

The answer is most definitely YES!  With accurate property research and due diligence combined with a keen knowledge of current market conditions and throw in a little luck for good measure you can make consistant and sizeable profits time and time again. 

Below are the details on a recent foreclosure auction purchase made by an investor working with Real Estate Investment Firm, LLC. 

Rosario Place, Renton WA

REIF foreclosure purchase

This property was purchased on March 27th 2009 at the King County Foreclosure Auctionfor $1.00 over the lenders opening bid of $364,650.00.  When this property was reviewed in our Auction Investor Meeting the night before, the REIF Auction Specialist told the group that a cash buyer could purchase and flip this property in under 90 days and make a net pre-tax profit of approximately $40,000.00.  In the end it only took 67 days from the purchase date until escrow closed on the re-sale.  When all the costs for acquisition, fix-up, holding and re-sale were calculated, the net profit to our client was $39,463.00  Below is a breakdown of those figures and a chart that shows the ROI (return on investment) for this transaction.

If we extrapolate this data out to a 12 month time-frame, it would roughly work out to an anual net income before taxes of $240,000.00.  Keep in mind as well that the investor who bought this house only spent approximately 30-40 hours of his time working on the property. 

If you would like to learn how you can help secure your financial future by investing in foreclosures and distressed real estate then I encourage you to attend one of our free foreclosure investing workshops.  They are held every Tuesday at 5:30 pm at our downtown Redmond office

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How to buy foreclosures, bank owned and short sale properties

Buying or investing in properties that are in the foreclosure process is your wealth building opportunity!

Did you know that NOW is the best time to invest in foreclosure properties?

Many people are interested in investing in properties that are in the foreclosure process, but are unsure of the steps to take to get started. 

 The market conditions of today have converged to create a “Perfect Storm” of opportunity for the savvy real estate buyer or investor.  The opportunity is there to purchase your next property at discounts of 20-50% under today’s market value.  Never again will the same market conditions exist that precipitated our current liquidity crisis, stock market crash and subprime mortgage meltdown.  The opportunity to take advantage of this unprecidented market is now!  If you are qualified, committed and motivated we will provide you with an inventory of efficient and profitable assets to meet your short and long term financial objectives.

Come and learn how to “Never Pay Retail” again and purchase real estate at 50-80 cents on the Dollar!

Some of what we will cover in the workshop

• The foreclosure process and timeline
• Recent sales data and market statistics for the region
• Foreclosure trends and market analysis
• Lien priority in Washington State
• Investment Strategies to maximize your return on investment (ROI)
• The importance of establishing an exit strategy before you buy!

  

Will low interest rates bring buyers back to the table

Conforming 30 year fixed rates mortgage loans have dropped considerably this past week.  Locally Citibank and Countrywide are offering a 30 year fixed conforming loan for 4.875% with a cost of 2.250% and 2.000% respectfully. 

Will these never before seen interest rates prompt buyers back into buying again or will they sit on the sideline in hopes of obtaining the rumored 4.5% government subsidized rate when the new Obama administration takes office. 

Below is a chart obtained from MSN Money detailing available rates, fees & points available in the greater Seattle-Tacoma area.

Loans shown are 30-yr. fixed conforming loans available in Seattle-Tacoma, Washington.

photo credit: respres

 With rates this low, anyone looking to purchase a primary residence or investment property definitely needs to look to the foreclosure auction and short sales or REO/bank owned properties to get twice the financial benefits.  By buying a distressed property you can pick up a new home at discounts of 20-45% under today’s market value.  Combine that with never before seen low interest rates and you can increase your buying power dramatically.

Will Dec. 5th 2008 be the Biggest Foreclosure Auction Ever in King County

The foreclosure auction set for December 5th in King County, Washington is set to be the largest in County History.

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Forbes Ranks Seattle #1 Real Estate Market to Rebound!

Forbes.com recently posted an article listing Seattle as the #1 real estate market in the country most likely to rebound.  An excerpt from the story says “Seattle has a reputation for nurturing brainy industries like aerospace and software. That should help it weather the coming financial storm. Seattle also stays strong because of its vibrant, livable downtown where rents are going up and tenants are likely to stick around.”

It’s nice to know that the people at Forbes and the 700+ real estate professionals they surveyed for this piece echo the same sentiments that we at Real Estate Investment Firm have been saying for several months now.  When you look at the fundamentals of the Seattle area real estate market and the local economy, there is no better place to be to position yourself to make large gains when the turn around occurs.

You can read the entire article here.

Purhasing Foreclosures – Is It Hot Or Not?

Occording the Matt Steel, the owner of Real Estate Investment Firm, “this is the opportunity of a lifetime.”

As reported in a Seattle Weekly article on November 12, 2008, Steel talks about the current foreclosure market and how his company plays a part in it.  Helping thier investors find the “Hot” properties at auction each Friday or helping clients who are behind on their monthly mortgage payments find a buyer, through a short sale, to avoid foreclosure all together.

To see the full article in its entirety, go to http://www.seattleweekly.com/2008-11-12/news/foreclosure-vultures/

Finding the right contractor can make or break a flip when it comes to investing in foreclosures

Often, hiring the right contractors to tackle a flip project is the difference between making a solid profit on a deal or going sideways or back wards on your investment.

 While the current market necessitates more of a buy and hold strategy once in a while, a house ends up at the foreclosure auction and the numbers are so good you still have an opportunity make a decent profit from a fix-and-flip.  That profit can quickly evaporate into thin air however, if you hire the wrong crew to perform the rehab.  One of the keys to successful real estate investing is knowing what projects will bring value to your property and which will only take money from your bottom line.  When rehabbing a property it is crucial that the general contractor and his crew and the various sub-contractors involved understand that the needs of an investor are quite different from the average homeowner.  For the investor, it is always about the bottom line.  What will the job cost, and what will it return in dollars. Speed, quality and skill are what a successful rehab needs from his contractors, especially in this uncertain marketplace.

 One company and owner I have come to know very well in the recent months is Jerzy Radka, owner of Greenwood International.  Greenwood is a family owned business based in the Seattle area.  The founder and owner, Jerzy Radka, is also a real estate investor and he intimately understands what it takes to turn a flop into a successful flip.  After working with Jerzy and his crew on several projects I learned very quickly there isn’t very much this guy can’t get done.  His company is a complete one-stop-shop for all your home remodeling and rehabbing needs.  His crews work quickly and efficiently throughout the project, jumping from one task to the next as they work through the punch list.

To learn more about the type of work and projects that can be completed by Greenwoodii, please visit the following page: Greenwoodii International   

I strongly encourage anyone who is about to tackle a remodeling or rehabbing project to give Jerzy and Greenwood a call.  And if you want to learn how you can purchase or invest in foreclosures in King, Snohomish or Pierce County, please visit www.realestateinvestmentfirm.com

Why you should be buying foreclosure properties at the King County foreclosure auction

The month of October has proven to be a memorable one when it comes to buying foreclosure properties at the King County and Snohomish County Foreclosure Auction.  The deals that are available today at the trustee foreclosure sale are the best I have ever seen.

The roller coaster swings of the stock market, the federal bailout package, the collapse of WAMU, Fannie Mae and Freddie Mac and much, much more have created what I can only call the perfect storm of opportunity to buy these properties at discounts of 30-45%.

With such a small amount of liquidity available these days, the investors of a year or two ago can no longer play in this arena.  Since there are no more stated income loans, little or no down loans, etc. many real estate investors are forced to sit on the sideline and a new breed of investor has emerged to capitalize on this unprescendented opportunity. 

Today’s investor is likely to work at companies like Microsoft, Google, and Boeing, etc.  They do not see real estate investing as the path to overnight riches and a lavish lifestyle.  Rather they see real estate investing for what it should be.  What they do see though is opportunity. 

With the banks taking the radical ^{(Yes that is sarcasm)} position that for a person to qualify for a home loan they need to be able the document the following items:

1.  A steady and verifiable source of income (ie. they need to have a job)

2. Verifiable liquid assets (money in the bank)

3. A history of paying back loans (good credit)

many would be buyers and investors have been frozen out of the market.  This seemed to reach its peak during the beginning of October when you had the Dow Jones dropping like a lead balloon and Congress unable to come together at first regarding the bailout package.  This caused uncertainty and resulted in a 90% drop off of properties that get purchased by 3rd parties at the foreclosure auctions.  When 3rd parties don’t buy, the banks in turn end up with even more REO properties and they quickly realize that unless they act dramatically they will end up taking back even more of the foreclosure properties that go to auction.  When this happens the only real remedy the banks have is to stimulate 3rd party interest in the properties again.  The only way they can do that is to dramatically drop their opening bids down to levels that will assure that the foreclosures end up getting bid on at the auction instead of reverting back to the beneficiary.  THIS IS EXACTLY WHAT THEY HAVE DONE!  Lenders have begun to discount their opening bids by as much as 50%.  This equates to several hundred thousand dollars in some cases.

One example is a West Seattle property one of our clients purchased at the foreclosure auction on October 24th 2008.  The foreclosing lienholder was a first mortgage with a balance owed of $636,000.  Late Thursday the lender posted an opening bid of $311,000.  Our client was able to purchase the property at the King County foreclosure auction for $326,000.  The current market value of this custom built 2003 home is $500-550K.  That represents over $200,000 in instant equity for the buyer. 

This is just one example of many in the month of October.  November is traditionally a very busy month at the foreclosure auctions.  Don’t let this opportunity slip away. 

You can register to attend our free workshop, “Never Pay Retail” held every Tuesday at 5:30 in our Redmond office.  There you will learn how you can participate and profit from buying foreclosures at the foreclosure auction.  Sign up today!

If You Want To Invest in Foreclosures – You Need to Understand Lien Priority

Real Estate Investment Firm is a full service real estate investment company dedicated to assisting our clients create long term and lasting wealth through real estate investing. We specialize in Foreclosure Auction Purchases, Short Sales, and REO/Bank Owned properties. We invite you to attend our weekly "How to Buy Foreclosures" workshop held every Tuesday evening at our downtown Redmond, WA office. For more information or to register go to www.realestateinvestmentfirm.com

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