Monday, December 8, 2008

Jacksonville REO Market

For those of you that might now know what REO stands for, it's Real Estate Owned. It is a line item on a banks books that is a BAD thing for the bank. They aren't in the business of OWNING homes, they are in the business of LENDING MONEY. An REO property is a bad thing for the bank but a good thing for a home buyer! I like dealing with REO properties a LOT more than short sales! The preliminary work has all been done. The foreclosure is over, the negotiations are over, there are no "people" involved (as in home owners) and it's just a "business deal". The emotions are gone, the sadness is gone and it just comes down to the calculator! I like that! I get caught up in all of my short sales. I tend to take on the worries of my sellers. I want so desperately to help them, and more often than not, I can't. The lenders just take too long to decide on whether or not they'll take offers. The process takes so long, the home usually ends up in foreclosure. It's sad. It shouldn't be this way. The preforeclosure and short sale process is the modern day "Katrina" of our banking system. NO ONE KNOWS WHAT THEY'RE DOING! I get so discouraged and disheartened when I try dealing with these lenders. It's a mess. No one seems to be in charge and quite frankly, I don't think they really care. Buying a REO property on the other hand, is a cut and dried process. I make an offer for my client, I usually hear back in a day or so and boom(!) we either have a deal or we start a counter offer game. It's actually fun! It's all about the numbers--not the people. I like that........I'm surprised I feel that way! I got into Real Estate to help people. I think all of the negative experiences with short sales have turned me off that market! I like working with my investors for a lot of reasons. Number one, they're all so nice. Number two, they're such good business people. Number three, they're fun to be around and reason number four: they actually enjoy what they're doing! One reason they enjoy what they're doing is because the end result is a nice home for someone to rent at a REASONABLE RATE, or they end up with a re-habbed house that they can sell at a REASONABLE PRICE. As one of my favorite investors always says, "it's win--win--win for everyone involved". I like dealing with people that care about others. I guess I like dealing with REO's because, like in the beginning of my career, I'm still helping people...