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Today’s marketplace is full of investment opportunities. It’s possible that this is the best time in a generation to invest in real estate.

If you have investing in mind – no matter how serious or modest your goals are – you need an experienced real estate agent on your side.

The Right Agent for You

RE/MAX, with offices in more than 80 countries, has thousands of agents experienced in working with investors, and specialists in all types of investment properties, from foreclosures to luxury homes.

Contact an Agent Locate a RE/MAX real estate agent who is experienced in working with investor

Get the Facts

As we’ve all seen in recent years, housing values can rise and fall. But even when values are static or worse, those rent checks keep coming in.

Investing Can Be for You

By the way, you don’t have to be wealthy to invest in real estate. In 2009, half of all residential real estate investors earned $75,000 or less.

Property Search Any residential property can become a solid real estate investment, from a one-bedroom condo, to a bank-owned foreclosure, to a luxury home

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Contact a REALTOR®

A RE/MAX Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.

Get Preapproved for a Loan

Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your RE/MAX agent can also help you. Contact several lenders and determine which one will give you the best deal.

Determine Your Price Range and Area(s) in Which You’re Interested

By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your RE/MAX agent can help.

Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary

How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?

Begin Testing the Market

Right here on remax.com, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what’s available in your price range and explore neighborhoods.

With Your Agent, Begin Seriously Looking at Homes

Your agent can add to the list of homes you’ve already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?

Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you’re interested. See them at different times of the day.

Make an Offer

When you’ve identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.

At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.

Once Your Offer Is Accepted:

• You’ll be asked to submit an earnest money deposit that usually isn’t refundable.
• Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
• Have the property professionally inspected.
• If necessary, request repairs.
• Obtain homeowner’s insurance.
• Contact utilities (phone, water, power, etc.).
• A few days before closing, stage a walk-through.
• Obtain a cashier’s check for the down payment and closing costs.

At Closing:

• Make sure the terms and conditions of the loan statement are correct.
• Carefully read everything before you sign.

ENJOY YOUR NEW HOME!

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Disadvantages of Purchasing a Distressed Property

If you’re looking for a “steal,” you’re probably not going to find it. The market is heating up, with more and more buyers jumping into the market. If you’re purchasing a home to live in, you’ll often be competing not only against buyers similar to yourself, but against investors. More competition inevitably leads to higher prices.

The transaction process for short sales or foreclosures often takes longer than for traditional transactions. It’s sometimes not clear which lending institution actually owns a mortgage loan, and it can take time to get it all sorted out – especially if there’s a second mortgage involved, which is often the case.

Some foreclosed properties are also in rough condition. Many have sat idle for a long time with minimal or no maintenance. The departing owners may have sold off fixtures, or damaged the property.

Interested in searching for foreclosures in your area? Call The Manzo Team At: 626 296-2900

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Advantages of Buying a Distressed Property

First, you’ll be dealing with a highly motivated seller – either a bank in the case of a foreclosure, or in a short sale, sellers who are in financial trouble and very interested in getting out of a mortgage they can no longer afford.

These types of sales take much of the emotion out of the process. You won’t be insulting anybody, for instance, if you make an offer that’s lower than the asking price. (That’s not to say that the low offer will necessarily be accepted, of course.)

Lenders are extremely interested in getting these homes sold and off the liability side of their balance sheets. Many foreclosed properties can be purchased for only a percentage of what they would have commanded five years ago. (This situation is beginning to change, though; bidding wars are breaking out on some foreclosed properties these days, especially those that are moderately priced. Your RE/MAX agent will know what’s going on in this area and will be able to help you arrive at a reasonable strategy for making an offer.)

If you’re looking at a short sale, you’re not likely to get quite as good a deal as on a foreclosure. But there are definite advantages to purchasing one of these homes. For one thing, since the homeowners want to get the home sold quickly, they are likely to keep it well-maintained and in good move-in condition.

Contact Real Estate Agent

Buying Distressed Properties

Many of the homes for sale today – as many as half in some markets – fall under the category of “distressed properties.”

These are homes that have either gone through foreclosure or are being marketed as “short sales.” In a short sale, the homeowner can’t afford to maintain the mortgage, but the lender – rather than foreclosing – agrees to the sale of the property for less than the balance of the loan.

These types of sales have different dynamics than traditional sales – with more paperwork, often a longer transaction process and, in some cases, more frustration. For these reasons, many buyers shy away from foreclosures or short sales.

However, if you understand the potential pitfalls of purchasing a distressed property – and work with an agent who has a thorough knowledge of this market – you can get a great home at a great price.

Thousands of RE/MAX agents have been specially trained in working with foreclosures or short sales through the Certified Distressed Property Expert class or a similar course. They can guide you through the process and help you locate and purchase just the right home for you.

Short Sale Requirements – Do You Qualify for a Short Sale?

Distressed Property Institute CEO Alex Charfen explains the three must-have qualifications for a distressed homeowner to qualify for a short sale. Learn what most banks and servicers are looking for when considering this option.

Short Sale Investing Video →
Short Sale Information Video → Short Sale My Home
Contact Short Sale  Realtor →

Thinking of a short sale? Not every owner qualifies for a short sale. Watch this video! here is how to figure out if you meet the requirements for qualifying for a short sale.

Avoid Foreclosure

Avoid Foreclosure

Avoid Foreclosure: Are you behind in your mortgage payments, or concerned that you soon might be?

Have you received a preforeclosure letter from your lender?

Short Sale Investing Video →
Short Sale Information Video →
Short Sale My Home →
Contact Short Sale  Realtor →

First of all, don’t be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.

The economic downturn has led to many homeowners being “under water” in their loans, meaning they owe more than their home is worth, making it impossible to refinance.

If you’ve become one of those millions, don’t panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you.

To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever contacting their lender.

This would also be a good time to consult with a tax advisor and a RE/MAX agent. Thousands of RE/MAX agents are specifically trained to work with distressed properties, and will be able to help you explore foreclosure options.

Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they’ll consider viable alternatives. Some of these alternatives may keep you in your home.

Loan Modification

While only certain homeowners will be able to take advantage of this alternative, it may be your best option because it keeps you in your home and typically results in the least damage to your credit.

Your lender may be willing to modify the terms of the loan, whether it’s reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.

Mortgage and foreclosure terms defined.

Short Sales

This is the fastest-growing foreclosure alternative. Many lenders will allow a Short Sale, when the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, Short Sales generally take less time than foreclosures, so the banks don’t have to carry the properties on their books as liabilities.

And it’s attractive for homeowners because the impact on their credit is far less than in a foreclosure. You may be able to buy another home in as little as two to three years after a Short Sale, compared with a typical seven-year wait after a foreclosure.

Short Sales are paperwork-intensive, and there are many, many details involved. If you’re considering this option, it’s critical to work with a trained real estate agent who knows all the steps required to successfully complete a Short Sale.

RE/MAX leads the real estate industry in agents who’ve completed the Certified Distressed Property Expert (CDPE) course or other specialized training. They understand the intricacies of these transactions, and they’ll be able to advise and counsel you every step of the way.

Find a RE/MAX agent in your area. Search under the Designations field for Certified Distressed Property Expert, Short Sales & Foreclosure Resource or Five Star Professional. Or, under the Sub-specialty field, select “Short Sales” or “Foreclosure Property.”

The U.S. Treasury has announced guidelines for streamlining and simplyfing the Short Sale Process. See Video about the plan.

Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.

Foreclosure (Cash for Keys)

One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.

To prevent this, some lenders offer a program called “Cash for Keys.” The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.

Tips From HUD

The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:

Read more from HUD about avoiding foreclosure.

Find additional resources to help you avoid foreclosure.

A mortgage loan or deed of trust that allows the lender to adjust the interest rate. The rate change is agreed to at the inception of the loan.

Amortize:

Repayment of debt with payments of both principal and interest calculated to pay off the debt at the end of a specified time period.

Balloon Mortgage:

A mortgage with installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum, usually at the end of the term.

Buydown Mortgage:

A mortgage with a belowmarket interest rate that results in lower monthly payments. A buydown is made by the lender in the form of “points” in return for money received from the builder, seller or homebuyer.

Cash for Keys:

A deal a lender may make with a homeowner. The homeowner gets a cash settlement in exchange for vacating his/her foreclosed home and leaving the home in good condition.

Convertible ARM:

An ARM that may be converted into a fixedrate mortgage within an agreed-upon time period. There is usually a fee when the loan converts.

Deferred Payments:

Payments the lender agrees to postpone as part of the workout process when facing foreclosure.

Equity:

The net value of an asset. In terms of your home, the difference between the value of the property and the amount you owe on the mortgage.

Escrow:

Sometimes called impounds or reserves. Money or documents deposited with a third party to be delivered upon fulfillment. For example: a borrower deposits money with the lender to pay taxes and insurance on a property when they become due.

Fixed-Rate Mortgage:

A mortgage where the interest rate and payments remain the same for the life of the loan: typically 15 or 30 years.

Forbearance:

An arrangement in which the lender agrees not to take legal action if a homeowner arranges to pay the amount owed on a mortgage by a specified date.

Foreclosure:

A legal process where a mortgaged property is sold to recover the amount owed.

Refinance:

The payoff of an existing loan with a new loan using the same property as security.

Repayment Plan:

An arrangement in which the borrower makes additional payments to pay down the past-due amount while still making regularly scheduled payments.
Workout: Also called restructure. An alternative to foreclosure. Can include loan modification, short sales or forbearance.

The information on this website is deemed reliable but it is not guaranteed you should consult a professional before making a decision to take any action.

With more than 21 years of real estate experience, The Manzo Team offers our clients unparalleled real estate knowledge and expertise. Our agents are always ready to help you regardless of how complicated your real estate needs may be. Whether you are looking for a new or resale homes in San Gabriel we can help you locate the right home and neighborhood that fits your needs.
Our agents are objective to the positives and negatives of the property and will help you in making an informed decision.

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Sidney Manzo with RE/MAX Tri City Realty Realtors’ Pasadena office recently was presented with the RE/MAX Hall of Fame Award, which honors successful agents who have earned more than $1 million in commissions during their careers with the company.

Mr. Manzo has been working in the real estate industry for more than 22 years and has extensive experience in selling investment, residential properties, bank-owned foreclosure properties and assisting homeowners with short sales.
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Contact Realtor Sidney Manzo At: (626) 296-2900 | E-Mail