finding & buying bank-owned bargains
DESCRIPTION
Co-hosted by Tami Bonnell, President of the U.S. Organization of EXIT Realty Corp. International, and Charlie Engel, Director of Business Development at RealtyTrac, this webinar covers the following:• Find listed and unlisted REOs in your neighborhood• Identify the best bargains and investments• Choose an effective and knowledgeable real estate professional• Make the best offers most likely to be accepted by the banks• Avoid common pitfalls in buying bank-ownedTRANSCRIPT
FIND & BUY BANK-OWNED BARGAINSFind the best bargains and avoid common
mistakes
WEBINAR PRESENTERS
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CHARLIE ENGELDirector of Business Development
TAMI BONNELLPresident – U.S. Organization
WHAT WE’LL COVER TODAY
• The what, why & where of REOs
• 3 bank-owned buying opportunities
• Tips and tricks for REO hunting on RealtyTrac
• Putting an agent’s expertise to work for you
• Making offers most likely to be accepted
• 5 mistakes to avoid when buying bank owned
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A BIT ABOUT REALTYTRAC
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• RealtyTrac publishes the country’s largest database of foreclosure and bank-owned properties
– Data from over 2,200 counties, covering over 92% of U.S. housing units
– Data updated at least twice daily
• #1 online Foreclosure marketplace – 1.5 million foreclosure and bank-owned properties nationwide
• Unmatched property evaluation and transactional tools
– HomeScore, Equity & Loan Info, Property Analyzer, Online Offers, Foreclosure-MLS Match, and much more
• 90 Million Assessor Property Records just added!• Property values, sales history and property tax info
ABOUT REALTYTRAC
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• The RealtyTrac foreclosure database is NOT an “MLS for foreclosure records”
• Most of the properties in the RealtyTrac database are NOT on the MLS anywhere– Less than 20% of the homes in foreclosure are
listed– Less than 30% of REOs are listed– Many MLS organizations prohibit including any
REO or foreclosure information in the property listings
• A challenge and opportunity for REO buyers• Sometimes extra steps involved• A jump on the competition
ABOUT REALTYTRAC DATA
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WHO RELIES ON REALTYTRAC DATA
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WHO RELIES ON REALTYTRAC DATA
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THE WHAT, WHY & WHERE OF REOS
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WHAT ARE REOS?
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WHY REOS?
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WHY REOS?
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Source: RealtyTrac Foreclosure Sales Report
19 Percent of Total
Sales in Q2 2011
19 Percent of Total
Sales in Q2 2011
REO SAVINGS
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Source: RealtyTrac Foreclosure Sales Report
40 Percent Discount
40 Percent Discount
Avg. Price Below
$150,00
Avg. Price Below
$150,00
WHERE ARE REOS?
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REO Sales
MSA Name # of REO Sales % of All Sales Avg Sales Price Avg Discount %
Phoenix-Mesa-Scottsdale, AZ 13,042 36.18 $116,741 36.39
Las Vegas-Paradise, NV 7,557 37.28 $115,604 22.53
Riverside-San Bernardino-Ontario, CA 7,132 31.15 $166,156 25.31
Los Angeles-Long Beach-Santa Ana, CA 6,720 18.42 $295,168 42.87
Chicago-Naperville-Joliet, IL-IN-WI 6,708 29.17 $121,305 54.33
Miami-Fort Lauderdale-Pompano Beach, FL 6,275 20.26 $113,430 44.14
Detroit-Warren-Livonia, MI 6,156 37.49 $63,218 46.07
Atlanta-Sandy Springs-Marietta, GA 5,897 30.78 $112,040 47.54
Sacramento--Arden-Arcade--Roseville, CA 4,139 36.49 $172,889 32.55
San Francisco-Oakland-Fremont, CA 3,254 21.76 $284,949 53.86
Dallas-Fort Worth-Arlington, TX 2,880 11.42 $143,010 32.08
Houston-Sugar Land-Baytown, TX 2,682 11.67 $118,983 45.34
Seattle-Tacoma-Bellevue, WA 2,617 21.70 $204,410 40.53
Minneapolis-St. Paul-Bloomington, MN-WI 2,575 25.06 $134,054 33.67
Denver-Aurora, CO 2,573 21.22 $164,030 39.42
Washington-Arlington-Alexandria, DC-VA-MD-WV 2,468 12.64 $219,064 47.45
San Diego-Carlsbad-San Marcos, CA 2,393 20.81 $284,426 35.45
Tampa-St. Petersburg-Clearwater, FL 2,364 17.18 $88,754 36.01
Orlando-Kissimmee, FL 2,245 20.17 $105,460 26.66
Portland-Vancouver-Beaverton, OR-WA 1,618 22.76 $177,653 33.40
Current: Apr 01, 2011 - Jun 30, 2011
Biggest DiscountBiggest
Discount
Lowest Avg. Price
Lowest Avg. Price
By Total SalesBy Total Sales
WHERE ARE REOS?
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REO Sales
MSA Name # of REO Sales % of All Sales Avg Sales Price Avg Discount %
Modesto, CA 1,158 44.20 $133,377 16.23
Vallejo-Fairfield, CA 878 40.72 $183,353 20.64
Stockton, CA 1,395 39.26 $152,688 17.11
Detroit-Warren-Livonia, MI 6,156 37.49 $63,218 46.07
Las Vegas-Paradise, NV 7,557 37.28 $115,604 22.53
Fresno, CA 1,186 37.05 $128,774 28.18
Sacramento--Arden-Arcade--Roseville, CA 4,139 36.49 $172,889 32.55
Phoenix-Mesa-Scottsdale, AZ 13,042 36.18 $116,741 36.39
Bakersfield, CA 1,325 35.80 $116,856 21.23
Prescott, AZ 502 35.65 $135,621 29.56
Visalia-Porterville, CA 523 34.70 $114,896 25.62
Tucson, AZ 1,582 34.52 $112,717 43.11
Reno-Sparks, NV 787 33.55 $139,328 30.17
Riverside-San Bernardino-Ontario, CA 7,132 31.15 $166,156 25.31
Atlanta-Sandy Springs-Marietta, GA 5,897 30.78 $112,040 47.54
Chicago-Naperville-Joliet, IL-IN-WI 6,708 29.17 $121,305 54.33
Virginia Beach-Norfolk-Newport News, VA-NC 1,221 25.69 $146,246 40.89
Oxnard-Thousand Oaks-Ventura, CA 668 25.12 $344,968 25.55
Minneapolis-St. Paul-Bloomington, MN-WI 2,575 25.06 $134,054 33.67
Kansas City, MO-KS 1,305 24.90 $125,360 27.67
Current: Apr 01, 2011 - Jun 30, 2011
By Percent of all Sales
By Percent of all Sales
• 700,000 unsold REOs in RealtyTrac database
• 800,000 properties in the foreclosure process
• 3.6 million delinquent properties at risk of foreclosure
• 12 million underwater loans at risk of foreclosure
• 14 percent increase in new default notices in Q3• First quarterly increase in six quarters• Many will move to REO over the next 3 to 12 months
MORE REOS COMING
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THE 3 BANK-OWNED BUYING OPPORTUNITIES
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3 REO BUYING OPPORTUNITIES
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FINDING REOS ON REALTYTRAC
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UNLISTED
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LISTED
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Contact Listing Agent
directly
Contact Listing Agent
directly
FORECLOSURE-MLS MATCH
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Find for-sale foreclosures using Status column sort
Find for-sale foreclosures using Status column sort
AUCTION
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Find out more about the auction and details about how to bid
Find out more about the auction and details about how to bid
TIPS FOR REO HUNTING ON REALTYTRAC
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ADVANCED SEARCH
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Search by Property TypeSearch by Property Type
Search by Property CharacteristicsSearch by Property Characteristics
Search by LenderSearch by Lender
Search by Appreciation PotentialSearch by Appreciation Potential
PROPERTY ANALYZER
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Select Buying & Investing Strategy
Select Buying & Investing Strategy
Set up different scenarios
Set up different scenarios
See projected outcomes
See projected outcomes
PROPERTY WATCH ALERTS
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Get email alert when property
changes foreclosure
status, is listed for sale, or listing price
changes
Get email alert when property
changes foreclosure
status, is listed for sale, or listing price
changes
• 7-day free trial membership
• $99.95 for a four-month membership (50% off)
• $199.95 for a 12-month membership (67% off)
• Go to www.realtytrac.com/webinar
• Call 800-905-5074 to talk with a representative
SPECIAL REALTYTRAC OFFERS
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WHY AGENT REPRESENTATION MATTERS…
• Expertise in the Marketplace
• Real Estate History
• Specialization in REO’s and Short Sales
• Accurate Market Knowledge
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WHY SPECIALIZATION IS IMPORTANT
• Laws Change Regularly
• More Unknowns
• More Moving Parts
• Specialists Work with Other Experts
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GETTING OFFERS ACCEPTED
• Do as Much Homework on the Property up Front
• Fewer Conditions
• Cash/Very Solid Financing
• Little or no Contingencies
• Flexible Closing Date
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TOP MISTAKES TO AVOID
• Property Issues
• Not Doing Inspections
• Not Being on Top of Timelines in Contract
• Title Issues
• Competitive Bidding
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EXPECT THE UNEXPECTED
• Common Additional Expenses
• Property Issues
• Great Deals Don’t Move in Slow Motion
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Q&A WITH CHARLIE AND TAMI
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Q&A
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CHARLIE ENGELDirector of Business Development
TAMI BONNELLPresident – U.S. Organization
• EXIT Realty: http://exitrealty.com/ • RealtyTrac Agent Network
• www.realtytrac.com/agents/leads/landing.aspx
• RealtyTrac Community• http://community.realtytrac.com/
• REALTOR market research• http://www.realtor.org/research
• REO Buy-and-Hold Case Study• http://ow.ly/7iKo2 (contacting lenders directly)
• REO Flipper Case Study• http://youtu.be/I049w_ouebU (working with agent)
• RealtyTrac special offer: www.realtytrac.com/webinar
LINKS & RESOURCES
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