Foreclosure Purchase
Bank REO (Real Estate Owned) departments call us with their acquired foreclosure property. Bank will establish price and closing date.
Example:
132 Skadoo, Naperville
Purchase Price: $100,000
Closed Date: 30 Days from Acceptance
Property Analysis
After the bank presents our office with available foreclosures we then have twenty four hours to either accept or decline the purchase. During the analysis process we complete the following.
- Complete a CMA (Certified Market Analysis) to establish resale or appraised value. (Example $180,000 Resale Value)
- Visit property and complete an interior and exterior visual inspection.
Enter property data into our real estate market software. This tracks market prices, trends and absorption. - Contact our rehab team for an estimate of repairs. (Example $25,000 Rehab)
- Discuss with our licensed leasing agent rental estimates for subject property. (Example $1,500)
Property Analysis Summary For 132 Skadoo, Naperville
Purchase at $100,000
Valued at $180,000
Rehab Estimate $25,000
Rental Estimate $1,500
Email Property to Investors
After analysis has been completed by our investment experts, we then send property to our investors via email. A foreclosure acquisition binder is attached to each new property email. This binder includes the purchase price, resale value, rehab estimate and rental estimate. Photographs and market data are also included. The property is simultaneously posted on our client only website. This site is updated daily. We respect your time, if a property sells we will have it posted sold or removed from site that same day.
At this point, we ask investors to drive past property to view neighborhood and location. Most homes are vacant. After completing drive-by call us to complete an interior visual inspection.
If property is acceptable and you would like to move forward, our office will send a real estate contract to you via email. An earnest money deposit of usually $1,000 will hold the property. Typically, you will have 30-45 days to close on the property.
Financing
Once you have signed the contract to purchase property, you will need to contact one of our approved lenders. (Tip- Most lenders, mortgage brokers, and banks cannot finance foreclosed homes because they are not in pristine condition.) We have established strong relationships with a number of lenders who are comfortable with homes that need work. These lenders are not any more or any less expensive than your traditional mortgage broker. There are three financing options for foreclosed homes.
- Pay cash for property.
- Get a mortgage. They require a down payment of 20%. This loan is probably very similar to the loan you have on your personal residence. Payments are interest, taxes, insurance. Most loans are amortized over 30 years. (This is a good way to start investing)
Closing Property
After your financing has been completed the next step is to attend a closing. This is identical to a traditional closing on “regular” real estate. At closing all liens are paid for by seller.
- Back taxes are paid by seller.
- Past due water bills are paid by seller.
- Past due association dues are paid by seller.
- Any outstanding mortgages are paid by seller.
Also, at closing you will receive clear title and a title insurance policy. So, there is no need to worry about liens.
Chase Real Estate recommends the use of a real estate attorney who specializes in foreclosure purchases. We have an approved attorney. She is located in Naperville. Her office has closed 1000’s of foreclosure purchases.
Renovation
After closing you will have access to our approved rehab team, they can remodel your investment. Remember, they have already provided a rehab estimate. If you have your own crew or would like to use our recommended team that is your choice. They can complete some of all of the work needed on the property. The average rehab takes 55 days and costs $30,000.
The rehab team will organize and complete project to resale or rental standards.
- Materials used are purchased from distributors not retail stores. Saving investors $1,000’s per project.
- Use of standardized products. For example, Berber carpet for rentals and plush carpet for resale. Maple kitchen cabinets. Khaki paint for walls, white paint for trim and doors.
- They have built strong relationships with licensed roofers, electricians, HVAC, and other service trades.
A few days prior to completion of remodeling, we ask that you complete a “punch list” for the rehab team. The rehab team is independent of Chase Real Estate so you will pay them directly. Typically, 50% to start the project, a progress payment of 25% and then a final 25% payment when completed.
or
Rental Route
ChaseRental.com
After rehab has been completed, your next step will be to contact our office to get property listed for rent. Our office has employed three licensed leasing agents to assist in the marketing and processing of our clients rental investments. We have a five point marketing program.
- List property in MLS (Multiple Listing Service) as a rental.
- Market property using Realtor.com. We include enhanced features and virtual tours on all of our listings.
- Attractive signage for all homes.
- We will enter the property into our showing feedback service. Investors are granted access to this site where they can view the number of showings occurring on there home. After agent shows property to their potential tenant, we send the showing agent a feedback survey. Here, we ask each agent and their potential tenant to provide feedback on condition, curb appeal and price. Our investors have access to this information as well. This showing service keeps our investors informed daily with feedback. Thus, substantially decreasing market time.
- List property on our website ChaseRental.com. Our site receives 1000’s of hits each month.
- Our leasing agents will show the property. They will also complete an extensive background, criminal, and credit check. We check the tenant against a registry of known problem tenants. The leasing agent will write up the lease, collect first months rent and one month’s security deposit. Finally, exchange keys with tenant and deliver paperwork/money to investor.
(Tip)- Investors can always use our rehab team to fix problems after the tenant has moved in the property.
(Tip) – When a property is listed for rent we ask each agent and their buyer to provide feedback on condition, curb appeal and price. Our investors have access to this information as well. This showing service keeps our investors informed daily with feedback. Thus, substantially decreasing market time.
Resale Route
ChaseForeclosure.com
After rehab has been completed, your next step will be to call our office to get your property listed for sale. We have a strong marketing program to get your investment sold as fast as possible. We have a four point marketing program.
- List property in MLS (Multiple Listing Service).
- Market property using Zillow, Trulia, Realtor.com and many more sites. We include enhanced features and virtual tours on all of our listings.
- Attractive signage for all homes.
- We will enter the property into our showing feedback service. Investors are granted access to this site where they can view the number of showings occurring on there home. After agent shows property to their buyer, we send the showing agent a feedback survey. Here, we ask each agent and their buyer to provide feedback on condition, curb appeal and price. Our investors have access to this information as well. This showing service keeps our investors informed daily with feedback. Thus, substantially decreasing market time and increasing buyers offer price.
Once an offer is presented, I will personally negotiate and my staff will handle all aspects of contract signing, collection of earnest money, emailing contract to lenders and closing companies.
