One in Four 2nd Quarter Home Purchases Was A Foreclosure

[Fly Rod]

With record low interest rates there is no better time to buy then now, if one can afford to buy a first or second home. No one can predict the market 4 -5 years down the road. Real estate is a roller coaster ride, the market goes up and down as we have noticed since 2005. They that have purchased a home in 2004 - 2005 were the first to be short saled or foreclosed on, next came the ARM(adjusted rate mortgages) and jumbos came due and you could say that sticker shock set in when their payments doubled and homeowners could not afford the payments

If purchasing a 2nd home you may have to have a down payment of twenty five percent, lender may consider it investment property. When is a good time to purchase, when you want to buy. Do not under estimate the real cost of owning a 2nd home, there are maintence cost as is with the first home. In most or all cases of owning a vacation home capital gaines exemptions do not apply.

Should seek professional advice from a CPA prior to purchasing a 2nd home. There are strict IRS rules, 14 day rule when renting out a 2nd home. Your deductions are limited if you use the property for personal reasons for more then 14 days a year or if at least ten percent of the total rental days are for personal use.

Minimize your tax burden and use an accountant if you do it legally.

[Clammer]

NOT ALL FORECLOSed homes are discounted .

many REO /sellers .are still listing their properties TOOOOOOOOOOOOOOO %$%$%$%$in high .

also if you do find a REO property that is priced right & in good shape . chances are its going to sell @ 90% of market value .
also most of the lending is FHa/VA unless you have 20% down ........ fha/va have very strict guidelines / which makes many of the properties untouchable to many young buyers ;

the moveup buyer is the once that is stuck . most can,t buy uless they sell & if they are working with a agent that tells them no worries ........... buy outright yours will sell quick or to take the old so called bride loan ....................ya best get ya ass away from that agent ...... they need a sale reeeeeeeeeeeal bad & @ your expense .

Another thing with trying to buy REO properties is >they WILL not go into a sales contract with a buyer that has a property to sell //even if its in deposit ;;

another thing to consider is .......REO,s are sold [[AS IS >WHERE IS} & too many buyers will sign off on not having inspections ...because this is their DREAM home /...................................... big mistake ......2 reasons .......1st .they maybe willing to forego a inspections , but their lenders isn,t .
The seller of a REO property / even thro they say [as is] get a good buyers agent that knows what & how to deal with REO agents & their sellers .
If my buyers want a inspection they get it / if they don,t want it & they arn,t investors . I make them get it .
depending on who the seller is / the asset company / & the agent ...... sometimes I can get more for my buyers from a reo / bank owned seller than you can from a convential deal w/ a O/O seller .

a few of the other things that you may like to know is that many of the REO properties are in urban area,s / usually a higher than average crime rate & a pretty good chance its been [cleaned] out .
The investor that knows his or her s hit ... Is/Will & continue to be the ones that are >>some making money right away .some within a few months & all in 5 years .
the breakdown / some will buy a property /not in really bad shape @ a really good price /but some money into it & FLIP it now .
there are the urban & suburban investors ..... the sub .many times this is new to them & they don,t want problems so they buy outside the city ..usually single family //they usually don,t have alot of backup money [if case]
the city investor 1,2 ,3

1/ buys right ...flips
2, buys MFR ideally 3 units w/ 3 beds in each .........1st thing they do is spend real good money on a high end motion detector system / so while they repair their investment / it stayed repaired ...... they go staight & get it approved for section 8 .......................... now they have 3 top of the line rents going directly to them / the tenant nevers sees it to spend it .these guys are making big bucks

3,rd is the same as some of the 2nds / except hes making money as he waits for the market to change .. by the time he sells . he has his money back 50 times over & when he sells he will @ least ten times what he paid /

any questions .. ask & I,ll tell you /

in 2008 when all the agents & subprime brokers went belly up .i has 66 sides & still got in all the fishing I ever wanted .

OOOps gotta go missed kickoff ;;

PS be careful on what/ where/ & how you buy ><><><>