Let’s face it, if you are a real estate investor in today’s market there is a great chance you will be buying a bank owned home. And there are some key differences you need to understand;
- Banks really, really don’t care. The file is handled by an asset manager that makes $14/hr either way.
- Bank addendums are tedious and written to their total favor. My favorite is the $175.00 re-key fee so many charge for horrible locks.
- You may be responsible for turning on the utilities for inspections. Which means deposits and waiting around 4 hours for the water company to come turn the water on. If I’m doing it, expect to pay for my time.
- Now some banks are requiring actual copies of actual cashier’s checks just for the offer! Outrageous.
I could go on and on. But the bottom line is there are a different set of obstacles for purchasing a bank owned home. On the other hand, there can be great equity to be had if you know what you are looking for and what to buy.