Posted by Henry on May 04, 2007 at 11:04:19:
No THAT’S something I can use. Thank you Scott.
Is there anybody buying REOs in Colorado?
getting license for REO purchases - Posted by Henry
Posted by Henry on May 03, 2007 at 12:30:20:
I’m planning on buying some bank owned properties here in the Denver area over the next 18 months. I’m wondering if it would be a smart move to get my RE license in order to earn some commission money when I buy these properties. However, I wonder if banks give out their best deals to agents buying property for their own account. Is it better to use an agent specializing in bank owned property?
when will Denver bottom? - Posted by CTR (CA)
Posted by CTR (CA) on May 04, 2007 at 23:33:01:
Henry,
Interesting you mention Denver, it’s the only major city from the Rockies West that did not boom in price the last 5 yrs. In fact even midwest cities out-appreciated it. I know there have been foreclosure problems for years there, but any idea on when you think it might bottom? B/c Denver didn’t boom like everywhere else, I would think it would be fairly valued soon. Are the banks discounting REO’s?
Re: getting license for REO purchases - Posted by Rich-CA
Posted by Rich-CA on May 03, 2007 at 17:32:13:
Why would you need a license or commission if the price was right? Also, most states have standards and other requirements for licensed professionals that do not apply if handling your own business in areas not requiring an license. I would look at the RE lic exam prep book and see if anything is there you might need to know, but otherwise, why bother?
Re: when will Denver bottom? - Posted by Henry
Posted by Henry on May 05, 2007 at 10:03:43:
I’ve been in Denver for 18 months but haven’t invested in real estate except for the house I live in. I’m not an expert in real estate.
The market here is appreciating from negative 5-7% to positive 7% or higher depending on what area of town you buy. The foreclosures and REOs are in the areas with low or negative appreciation. Banks are discounting REOs and that’s why I want to buy them. I’m trying to find out if getting a RE license and picking up some commission money when I make purchases is a viable option or if it’s better to use an agent specializing in REOs in Denver.
I don’t know if the market is fairly valued. Most people here say overvalued because prices went up about a huge amount in the 90s and are high compared to what they were in the late 80s/early 90s. However it is interesting that prices are about the same as Phoenix is now, in fact prices in the REO areas of Denver are lower than anywhere in Phoenix now. I used to live in Phoenix. Denver should be higher priced than Phoenix because Denver’s a much nicer area with higher incomes but who knows.
People have no idea when the market will turn. Some say because April 07 sales were higher than April 06 sales, that is a sign. Others say 1-2 years. Others say we’ll have a national depression with huge price declines all over the country and we’ll be able to pick up RE at 20cents on the dollar in the future.
Sorry I can’t give you anything more specific or certain.
Re: getting license for REO purchases - Posted by Henry
Posted by Henry on May 03, 2007 at 19:03:36:
I could make some cash from the transaction. Here in CO, sellers are paying buyer’s closing costs.
Re: getting license for REO purchases - Posted by Rich-CA
Posted by Rich-CA on May 03, 2007 at 19:57:45:
Its good to know that sellers routinely pay buyers closing costs. I’m doing a 1031 exchange into Co Springs and I’ll have to remember that.
Re: getting license for REO purchases - Posted by Scott-OH
Posted by Scott-OH on May 03, 2007 at 20:29:25:
A problem you may face if you get your license. As an agent you may not be eligible to get the commission on the buying side of a Reo because the bank often will not allow it. I’m not sure why, but the banks put in the disclosures that if purchased by agent in brokerage then the brokerage gets little or smaller commission.