Looking For a Decent Bank Owned Investment…? You Found the Right Place…!

One of them is new to the market, the other has been there a while & ripe for an offer…!

Let’s start with the 1st one that is located at 6128-6130 Oakgreen Circle in Carmichael.   It’s been on the market for a little over a year and started out as a “short sale” but wound up as a foreclosure and now offered for sale as a “bank owned” property.

Oakgreen Circle is an interesting little street of “Pride of Ownership” type of properties that have many of these Duplexes occupied by their owners.   If you are a First Time Buyer, this would be an excellent property to make as your first home.

I have the estimated cash flow figures and a “walk through video below.   You will notice that I have an offer price lower than the list price but the cash flow based upon a higher sales price and that is because it’s going to take about $45,000 to $50,000 to really get this property right.  After that… it should be a “coupon clipper” for years to come.

Click Here for the estimated cash flow figures.

Click here for the Walk Through video and I think after you have seen it, you’ll realize it has potential.  It just needs the right kind of investor looking for a long term hold.

UPDATE AS OF 12:53pm...  When I wrote the information above early this morning,  the property was still showing “active”… well wouldn’t you know… someone thought it was a good investment and made an offer on it… I’ll keep an eye out for it and see what the ultimate outcome is and post it here…

___________________________________________

The other property is more of what I call an “investment” and is located at 8145-47 Desesret Avenue, Fair Oaks, Ca.   I inspected this property late last week.  I know this area well, because I also just closed a deal on a duplex just a few doors away on East Knoll, a cross street.

My estimate to bring this one up to a nice condition would be approximately $15,000 which would be enough to get in the interiors fixed up and have enough to allow you to put some “curb appeal” landscape improvements in.

It’s listed at just over $194,000.   The most recent sale was just a tad over $190,000 with about $3,000 credit going back to the Buyer in the form of closing costs and was tenant occupied at $900 per month each side.     The cash flow figures I have are based upon an assumption of a sales price of about $180,000 and approcximately $15,000 in fix up costs, which brings it close to the original list price coincidently.

Click here for the estimated Cash Flow after fix up.

Click here for the “walk through” video.

Make it a great day…!!

Ed Favinger, Broker CRS, GRI, SFR         favinger@rwnetwork.com      916-203-1260


Enhanced by Zemanta

An REO Bank Owned “Fixer” Duplex & A Short Sale Duplex – Profiled Here..!

Interesting Prospects – One is a typical Duplex that exist here in the Sacramento Region and the other could be something special..!

Lets start here with the “Short Sale”  Duplex located at 8148 Deseret Avenue, Fair Oaks, Ca.   It’s in an area of Duplexes very near the Sunrise Market Place in Citrus Heights.

This Duplex is  a 2 Bed/2 Bath/2 Car Garage and a 2 Bed/1 Bath/1 Car Garage configuration.

We are currently in escrow with a Duplex located on the cross street for Deseret and it should close in the next couple of days at just a smidge over $190,000.   This means this duplex might be a decent deal at it’s list price of $180,000.   I was not able to get inside because the units are occupied,  but I did take some exterior pictures.  I also created a  “pro-forma” cash flow analysis for your review.    Click Here for that.

The Bank Owned/REO Duplex is located at 6128 Oakgreen Circle, Carmichael, Ca.   This one is located in a unique area of pride of ownership duplexes that have a custom feel.   This property is a “one of a kind”.   I don’t have numbers on it yet, but here’s a Video Walk Through that I did a couple of months ago when it was listed at almost $250,000.   It’s now listed at $214,900 and I think it should sell for less given it’s condition.

I think “fixed up”..?   the 3 bedroom side should rent for $1,200 – $1,300 and the 2 bedroom side should rent for $1,000 – $1,100.

I’ll have a pro-forma cash flow analysis later.

Make it a Great Day…!!!

Ed Favinger, Broker, CRS, GRI, SFR    favinger@rwnetwork.com     916-203-1260

Enhanced by Zemanta

Want Some Good Advice When Applying for a Place To Rent…?

Never Lie or Give False Information When The Truth Will Serve You Better…!!!

I know times are rough now when we have a what…? 12.5% unemployment here in the Sacramento Region that is reported but I think we all agree it’s much higher than that.   Probably 20% or maybe more.

The reason I bring this up is because we are in Rental Property Management and Real Estate Sales that have been impacted by this recession.    We are out in the field and on the front lines everyday,  collecting rents from tenants who may have lost a job, Owners who are losing their homes and we are facilitating a short sale for them,  or we are dealing with Renters who may have to move because an Owner can’t maintain the payments anymore.

Since I know how bad it is,  I am aware of,  and have an understanding of the circumstances that can arise in the lives of the people that we deal with on a daily bases.

That means, if you have had some credit problems…? just be up front with me or any other Property Manager or Landlord when you need to move because if you lie, chances are we will find out about it.

I wrote about some suggestions and tips that should help folks that need to rent,  to qualify and to let you know what we look for and how you can improve your situation.   Click here for that article if you’d like to see it.

Because of these hard times and the sophistication of many fraud schemes,  the folks that work in our Property Management Company are pretty sensitive and cautious in our “tenant screening”.   Just today we had a lady lie about who her current landlord was, how much and where she made her money and she gave us copies of  some questionable cancelled checks that she said came from her current landlord.  She didn’t have a bank account and couldn’t even show us cancelled checks showing a consistent pattern of paying rent.

We think we know her real circumstances and we understand and sympathize….  But, had she just been honest with us to begin with, we might have been able to work with her.

Not a chance now.   A smart Property Manager, Landlord/Owner will keep a place vacant rather than rent, in the short term, to a tenant that would lie to get in with a questionable income source.

If you are looking for a place to rent, just be up front and honest about your situation because there are folks out there willing to work with you.

Make it a great day…!!

Ed Favinger, Broker, CRS, GRI, SFR        favinger@rwnetwork.com      916-203-1260

Enhanced by Zemanta

First Time Buyer’s Dream – Country in the City – Live Cheap…!

A “Bank Owned”, Remodeled Duplex in an Area of  Single Family Homes with a Country Feel in the middle of Suburbia.

I was in this area on December 4th around the middle of the day previewing this Duplex.

A young lady was holding the property open for the Broker of the company that has this property listed.    She told me this would be a perfect place for her to live in one side and rent the other side out because her rent would be really cheap.

I was just curious,  because this has been something I have advocated for young first time buyers to do, so I asked her old she was.    When she told me she was only 18 years old I was kind of stunned because for someone just hitting adulthood, this was a smart observation on her part.

See What She Means –  Check out this spread sheet and you’ll see what she was talking about.   Click here to see how low the payment would be if you rented one of these units out.   Tell me…  Do you think this young woman is thinking smart in the long term…?

I know many First Time Buyers would love to have a nice Single Family Home as their first home, but if they were to think long term, the idea of buying a property like this makes a lot of sense.

To See A Video Walk Through of This Duplex – Click on the Picture above – Let me know what you think…

Make it a great day

Ed Favinger, Broker CRS, GRI, SFR     favinger@rwnetwork.com   916-203-1260

Enhanced by Zemanta

What’s With Bank Of America & Their Loan Processing

What are Prior to Documents and  Prior to Funding Conditions…?    Some “inside baseball” talk from a Real Estate Broker’s point of view

Let’s talk about “prior to doc” conditions first.

What I’m describing here are conditions that the Lender has required that need to be met “prior to the issuance”  of loan documents” to the escrow holder for the Buyer to sign.

Generally these will be and have been issues primarily regarding the Buyer’s credit worthiness such as, verifications of employment,  verification of and source of down payment, verification of income and income sources, etc.  Basically qualifying the Buyer based upon the Lender’s loan criteria to be able to make the payments on time consistently.

If some of these criteria have not been totally satisfied,  what Lenders  do most of the time is to issue a statement that the Buyer has qualified for a loan “subject” to conditions that must be met before they will even type up the loan papers to be delivered to the escrow company for Buyer’s signature.   In other words, these conditions are serious enough the Lender won’t even draw up the documents until they have been met.

When those conditions are finally  met, loan documents are issued to the title company with a list of  conditions that must be met “prior to funding” the loan.

Prior to Loan Funding Conditions.

These are the conditions that must be met before the lender will issue their funding check/wire to the Escrow/Title Company and allow the sale to close.

Generally these are conditions that provide for,  not only that all of the documents must be properly signed and notarized, they will also include items  such as  providing proof of adequate Hazard/Fire insurance, obtaining Pest Control and/or Roof Clearances/Certifications along with a commitment from the Title Company that they will issue a policy of title insurance in their favor at close of escrow.

So why does Bank of America now have a Pest Control Clearance as a “prior to document” condition..?

We’ve got a single family home listed for sale at 125 Rambling Drive in Folsom that has been in a “pending sale” status for about 6 weeks now.

I’ve been in the real estate business for a while going back to 1981 and this is the first time I’ve ever seen a transaction that required the Seller to provide a Section 1 Pest Control Clearance prior to the bank issuing their loan documents.

Since this transaction is a short sale and this condition was not provided for in the short sale approval letter, it absolutely amazed me this was required by the Buyer’s lender.

The only way this condition was satisfied was because the Buyer’s agent decided to pay  approximately $1,000 to the  Pest Control Company so they could complete the work &  get the clearance which she then delivered to Bank of America’s processing center here in Folsom.

So with all that said, as of today, we still don’t have documents delivered to the escrow company from the Bank.

Looks to me like the Lender Criteria and Approval Process is really becoming a monster of a paper mill.   When you have a well qualified buyer with great credit and an appraisal that didn’t call for any pest work to be completed, why is Bank of America making it more difficult to close an easy transaction..?

Just another day in Real Estate..!

Make it a Great Day…!!!

Ed Favinger, Broker CRS, GRI, SFR    favinger@rwnetwork.com    916-203-1260

Related articles

Enhanced by Zemanta