Anyone who pays cash~ needs to have 10% as EMD and submit POF with the offer.
You can find real estate properties at any location on their website( just set your search).
You do need a realtor to submit your offer.
All offers are submitted via homepath.com, no electronic signatures accepted.
If you have more questions, you are welcome to give me a call/email.
Homepath is an excellent way to buy properties that wouldn't normally qualify for financing. You would have to pay 10% down and you also must wait till the First Look period is over.
I should also warn you that buying a foreclosure property in Miami right now is very competative. Almost all foreclosures without major damage have been selling at over 95% of thier lising price or more then listing price. 2/3 of all properties purchased in South Florida have been with cash.
I usually suggest to bid fast and bid high if you are serious about investing in a property here in South Florida. If your looking for a discount I would suggest you buying a damaged property and rehabbing it.
I have helped many investors buy using Homepath. I also have a section on my website devoted to Homepath properties: http://www.mannyingco.com/South-Florida-Properties/Homepath.html
HomePath Mortgage :
Please give me a ring or click on the link below for application information :)
(I know it says California, but I haven't done my page for Florida yet ;)
Miami is quite large. You'll need to narrow down the area, the type of property, and other factors. Ideally, you'd start getting a list of properties to begin looking at online that meet your criteria and you begin to narrow down your search to a few. This way, your 6-hour trip from LA to Miami can be as productive as can be while you're in town.
We'll get your offers carved and submitted and hope one you can live with makes the cut. Here's a few things to watch out for:
1) Often, properties found online are no longer available for a number of reasons. Some are illegally posted, some are still posted because the search engine you're using is not directly connected to the Realtor's MLS systems and the folks who posted those ads are not manually updating them and updates are not automatically passed along and others because agents fail or forget to update the MLS so that even services like Realtor.com are not updated (among other reasons).
2) Good deals go fast. There are often multiple offers on good deals or multiple offers materialize in the time it takes for your offer to get looked at and signed. Sellers want as much as they can get for their property and they will try to get as much as they can. If they can project the right perception, they will get multiple competing offers - often for cash. Be prepared and don't get emotional. You may go through a dozen offers before winning one bid.
3) Be aware that many condominiums may be difficult to finance. Do check the websites I sent you earlier and visit the Fannie Mae resources (find and do the same for Freddie Mac properties - both are government backed, both have plenty of REO inventory for sale and both operate very similarly). Make sure to only deal with official sites and service providers licensed in the business they're in and in Florida. If possible, select a local lender (even if from a national franchise).
4) Get your financing in order before arriving. Make sure you come in with your pre-approval in hand. The document should read in a way that says that only the value of the property and title issues need to be evaluated and that your information has been checked (though it will be re-checked prior to closing).
5) Be prepared with set-aside funds for work to be done. Be prepared to expend moneys before closing such as for inspection, insurance and appraisal. After closing, funds to cover financing, maintenance and what whatever it takes until the property is rented.
6) Since you intend to rent out the property, carefully research rental rates for the properties you intend to make offers on and carefully compare it with other monthly expenses (condo fees, taxes, insurance, repairs, etc), against your income potential. Consider possible increases in insurance, taxes and/or maintenance expenses in a condo and remember that they are almost impossible to project. Your expenses today may not be the same tomorrow. Raising your rent may not be as quick or as much to offset these expenses and consider what would all this mean to you and your bottom line.
7) Remember you're competing with investors. Some are professionals, many are local and often do not even have to see a property physically before making their (cash) offers. Non-professionals drive prices up with emotional offers. Don't let this bother you one way or another - it is what it is.
8) Consider that you are buying a property for the income potential and rentability and NOT because you're going to live in it. This alone can make your purchase easier. You don't have to like the property to live in in order to buy it. If you're strictly considering the purchase for income potential as an investment, only the numbers matter most. How much will it cost me per month...how much will the rent bring me each month, how much can I put aside from it for emergencies and repairs and how much will I get to keep to buy free gas with.
Barring it being in a war-zone (thankfully...we don't really have many of those or at least, my perception is that there are places around LA that are much worse than our worst), Miami offers a lot of great potential rental areas.
These are but a few things to consider. If you're getting the jeevies reading the above...congratulations. You have a pulse.
Take it easy, talk to a professional and take your time to decide. Once you do and you've done your homework and you still want to buy your investment property 3000 miles away (rather than starting closer to home), then let me know how else I can help you.
I personally have purchased a couple of Homepath properties and the purchase and closing process was very similar to any regular purchase. Any and all title issues must be cleaned up by the Seller before the property can convey. There are a couple of closing costs, which typically belong to the Seller, that Fannie Mae won't cover. Also, one thing to be aware of is that Fannie Mae markets many of their properties under what they call their FirstLook program... this program precludes consideration of any investor-offers for, typically, the first 15 days of a listing. After the 15 days, they will look at investor offers if the property is not under contract. Many of our Fannie Mae properties are prices very attractively, and naturally never make it the end of the FirstLook phase without a contract in place.
Please feel free to contact me directly if you would like any additional clarification or information.
Keller Williams Miami Beach
Thanks for you response. By investor, I mean that I would like to buy a property and rent it out to generate monthly rental income. I would prefer long term renters (1 year leases) as opposed to it being a vacation rental. My goal is to achieve a 10% ROI after expenses have been taken into consideration. I will value the property based on the expected cash flow considering rents for comparable units/properties in the building/area. I am only looking for properties that will yield positive monthly cash flow. I am willing to do upgrades and repairs, but not major professional work (i.e. turning a property with violations into). This being my first property, I would like to stay away from major fixer uppers, but am open to this in the future after I gain more experience.
Visit Fanmie Mae's official page and others like:
More importantly...what do you mean by "investor"...how do you define what an investment property is? What does one look like to you?
How will you perform your due dilligence? How will you determine its value in the current market? How will you know if it's a deal? Do you have funds set aside for repairs, upgrades, etc?
If work is necessary...how much of it are you willing to do? Are you only able and willing to do minor work such as paint, carpet replacement and some landscaping? Are you willing to do repairs and upgrades such as roof replacement, cabinet replacement and other systems such as air conditiioning repair or replacement? Are you willing to do professional work to include turning a property with violations, illegal additions, fire or water damage, electrical and/or plumbing issues, vandalized and other major work?
Whatever your choice...1) get informed, 2) pick the right professionals, 3) Act
This would be no different. If you are interested, please call me at 954-993-4104 or email me at email@example.com.
Look forward to hearing from you.