buying bank own homes with 10% down?

[kcal09]

It’s much easier to get a bank owned property when you can pay cash. People who have the money don’t mind putting down a lot so that they can get a great deal.

[EconProf]

For those few with the necessary liquidity, buying house rentals for cash makes a lot of sense. You avoid the transaction costs and delays of getting a loan and can hammer the seller on price. You are the only bidder on non-loanable houses like code-violaters, cracked slabs, serious fixers, etc., that lenders avoid. Fix the problem, rent it out, and enjoy the cash flow, which should be 8% to 12%+ on your investment.
Then refinance and repeat on another property. For those entrepreneurs with the knowledge and experience, this is a valuable niche. And it will clean up the debris left from the collapse in RE, and actually help the market recover.
Compared to 1% to 3% from our stingy bank CD’s, that looks pretty good.

[EconProf]

For those few with the necessary liquidity, buying house rentals for cash makes a lot of sense. You avoid the transaction costs and delays of getting a loan and can hammer the seller on price. You are the only bidder on non-loanable houses like code-violaters, cracked slabs, serious fixers, etc., that lenders avoid. Fix the problem, rent it out, and enjoy the cash flow, which should be 8% to 12%+ on your investment.
Then refinance and repeat on another property. For those entrepreneurs with the knowledge and experience, this is a valuable niche. And it will clean up the debris left from the collapse in RE, and actually help the market recover.
Compared to 1% to 3% from our stingy bank CD’s, that looks pretty good.

[EconProf]

For those few with the necessary liquidity, buying house rentals for cash makes a lot of sense. You avoid the transaction costs and delays of getting a loan and can hammer the seller on price. You are the only bidder on non-loanable houses like code-violaters, cracked slabs, serious fixers, etc., that lenders avoid. Fix the problem, rent it out, and enjoy the cash flow, which should be 8% to 12%+ on your investment.
Then refinance and repeat on another property. For those entrepreneurs with the knowledge and experience, this is a valuable niche. And it will clean up the debris left from the collapse in RE, and actually help the market recover.
Compared to 1% to 3% from our stingy bank CD’s, that looks pretty good.

[EconProf]

For those few with the necessary liquidity, buying house rentals for cash makes a lot of sense. You avoid the transaction costs and delays of getting a loan and can hammer the seller on price. You are the only bidder on non-loanable houses like code-violaters, cracked slabs, serious fixers, etc., that lenders avoid. Fix the problem, rent it out, and enjoy the cash flow, which should be 8% to 12%+ on your investment.
Then refinance and repeat on another property. For those entrepreneurs with the knowledge and experience, this is a valuable niche. And it will clean up the debris left from the collapse in RE, and actually help the market recover.
Compared to 1% to 3% from our stingy bank CD’s, that looks pretty good.

[EconProf]

For those few with the necessary liquidity, buying house rentals for cash makes a lot of sense. You avoid the transaction costs and delays of getting a loan and can hammer the seller on price. You are the only bidder on non-loanable houses like code-violaters, cracked slabs, serious fixers, etc., that lenders avoid. Fix the problem, rent it out, and enjoy the cash flow, which should be 8% to 12%+ on your investment.
Then refinance and repeat on another property. For those entrepreneurs with the knowledge and experience, this is a valuable niche. And it will clean up the debris left from the collapse in RE, and actually help the market recover.
Compared to 1% to 3% from our stingy bank CD’s, that looks pretty good.

[SD Realtor]

Yep that is the idea, although refinancing on income property is not nearly as easy as it used to be if you are doing a cashout refi. Still even if you cannot refi it, getting 10-15% cash on cash is not bad.

[SD Realtor]

Yep that is the idea, although refinancing on income property is not nearly as easy as it used to be if you are doing a cashout refi. Still even if you cannot refi it, getting 10-15% cash on cash is not bad.

[SD Realtor]

Yep that is the idea, although refinancing on income property is not nearly as easy as it used to be if you are doing a cashout refi. Still even if you cannot refi it, getting 10-15% cash on cash is not bad.

[SD Realtor]

Yep that is the idea, although refinancing on income property is not nearly as easy as it used to be if you are doing a cashout refi. Still even if you cannot refi it, getting 10-15% cash on cash is not bad.

[SD Realtor]

Yep that is the idea, although refinancing on income property is not nearly as easy as it used to be if you are doing a cashout refi. Still even if you cannot refi it, getting 10-15% cash on cash is not bad.

[Diego Mamani]

[quote=threadkiller]I for one have a hard time imagining why anyone, particularly the rich, would want to pay cash[/quote]In addition to what EconProf said, there are many reasons why investors would pay cash, even with credit being as cheap as it is today:
(1) In some regions of the country where the rent/price ratio is high, houses are so cheap that after you put 25% down, the loan comes to less than $50K, and lenders seldom want to bother with such micro loans.
(2) The FHA guidelines (that commercial banks such as BofA or WF use) stipulate that investors can’t finance more than four properties.
(3) Underwriting guidelines are so ridiculously strict nowadays, that for small loan amounts some investors end up paying cash rather than having to deal with all the red tape.

[Diego Mamani]

[quote=threadkiller]I for one have a hard time imagining why anyone, particularly the rich, would want to pay cash[/quote]In addition to what EconProf said, there are many reasons why investors would pay cash, even with credit being as cheap as it is today:
(1) In some regions of the country where the rent/price ratio is high, houses are so cheap that after you put 25% down, the loan comes to less than $50K, and lenders seldom want to bother with such micro loans.
(2) The FHA guidelines (that commercial banks such as BofA or WF use) stipulate that investors can’t finance more than four properties.
(3) Underwriting guidelines are so ridiculously strict nowadays, that for small loan amounts some investors end up paying cash rather than having to deal with all the red tape.

[Diego Mamani]

[quote=threadkiller]I for one have a hard time imagining why anyone, particularly the rich, would want to pay cash[/quote]In addition to what EconProf said, there are many reasons why investors would pay cash, even with credit being as cheap as it is today:
(1) In some regions of the country where the rent/price ratio is high, houses are so cheap that after you put 25% down, the loan comes to less than $50K, and lenders seldom want to bother with such micro loans.
(2) The FHA guidelines (that commercial banks such as BofA or WF use) stipulate that investors can’t finance more than four properties.
(3) Underwriting guidelines are so ridiculously strict nowadays, that for small loan amounts some investors end up paying cash rather than having to deal with all the red tape.

[Diego Mamani]

[quote=threadkiller]I for one have a hard time imagining why anyone, particularly the rich, would want to pay cash[/quote]In addition to what EconProf said, there are many reasons why investors would pay cash, even with credit being as cheap as it is today:
(1) In some regions of the country where the rent/price ratio is high, houses are so cheap that after you put 25% down, the loan comes to less than $50K, and lenders seldom want to bother with such micro loans.
(2) The FHA guidelines (that commercial banks such as BofA or WF use) stipulate that investors can’t finance more than four properties.
(3) Underwriting guidelines are so ridiculously strict nowadays, that for small loan amounts some investors end up paying cash rather than having to deal with all the red tape.

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