What is the procedure for buying Fannie Mae homes in Chicago suburbs as an investment/rental property. Any specific city has good rental market?

Asked by Afzal Syed, Charlotte, NC Thu Jan 10, 2013

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Philip Sencer, Agent, Chicago, IL
Thu Jan 10, 2013
It is the same basic procedure for buying any property from your standpoint. We agents need to present the offers a bit differently. There are lots of good rental markets in the Burbs, but if you are unfamiliar with this area I hope you are not planning to rely on an agent. Do you have any family/friends around here? Who will collect the rent or do minor maintenance? It can be expensive to hire a management firm to do everything. What price point? Nothing decent to buy in NC??
1 vote
JIM Michaels, Agent, Chicago, IL
Mon Jan 14, 2013
First 15 days limited to owner occupants offers only
0 votes
Ivan Sagel, Agent, Chicago, IL
Sat Jan 12, 2013

After 15 days on market, an investor can make an offer on the property.

All the best,

Ivan Sagel
0 votes
Andy Ogorzaly, Agent, Chicago, IL
Thu Jan 10, 2013
It is very similar to buying other foreclosure properties except the first 15 days are limited to owner occupants ONLY. After that, it is up for grabs. Then you have an additional addendum after you get accepted basically talking about how you are buying it "as-is." Otherwise you close the same way as a traditional property.

Any place with people can be a good rental market. All of it depends on your risk level and the return you want to get. You get a property for $5000 and you would probably get a good return, but are you going to get good tenants? If you have to put in more money than it is worth, then it probably is a risky investment. Chicago is a huge place, so it sounds like you need to talk with someone from the area to narrow down your options.
0 votes
Evelyn S. Fr…, Agent, Chicago, IL
Thu Jan 10, 2013
Hello Afzal,

Process is the same. It's only different for the broker representing you, different submittal process and forms.

Usually the Fannie Mae home anywhere give 1st option to purchase to owner occupants, after 15 days if they have not received a qualifying owner occupant buyer then it's made available to investors.

Hope this helps!
0 votes
, ,
Thu Jan 10, 2013
Hello Afzal - with any type of transaction
If you are looking to finance the property you should speak with a lender first to complete the pre approval and determine your price point. This will help you assess the ROI for the properties that you are considering.
I do have a lot of experience with Fannie Mae Homepath and Homepath renovation financing if you need assistance
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
Manuel Brown, Agent, Chicago, IL
Thu Jan 10, 2013
All have given you very good answers.

Best of Luck,

Manuel Brown, Broker
iMove Chicago
0 votes
Jack Lewitz, Agent, Lincolnwood, IL
Thu Jan 10, 2013
Investors are not permitted to make offers during the first 15 days on the market. Then you are allowed to submit offers at homepath.com through a buyer agent. Make sure you show proof of funds and llc corporation letter of authority . Need more info contact me.
0 votes
David Hanna, Agent, Chicago, IL
Thu Jan 10, 2013
Not much to add except the answers already here show the excellent resource this forum can be.

Visit the website http://www.homepath.com/search.html?st=IL&ci=Chicago

for a first look at inventory that may not yet be in the MLS.

Be smart, use an agent who knows the neighborhoods and will make sure you get a fair price.
0 votes
jeff donnell…, Agent, Chicago, IL
Thu Jan 10, 2013
Most Fannie Mae homes have an owner occupant priority during the first 15 days. After that the property is open to investors. Each suburb will be different and be open to multiple areas will increase your chances of find the best deal. Also keep in mind proximity to your home or work and easy the property will be to manage. I work a lot with investors and would be happy to explain the process and how to choose the best property with the best returns. Please contact me if you have any questions.
0 votes
Pete Burke, Agent, Schaumburg, IL
Thu Jan 10, 2013
Fannie Mae has a very specific offer submission procedure that is online. I have had several offers submitted for clients in this system. Note there is an initial look period that investor offers will not be considered. Should the property remain on the market after the initial look period ( usually 15 days), the seller will consider investor offers. Best advise is to get an experienced agent to help you!
0 votes
Matt Laricy, Agent, Chicago, IL
Thu Jan 10, 2013
It all depends on what your looking to get involved with. Condo, homes, etc. I would suggest investing in an area your familiar with. Get a good buyers agent to represent you. Its free to use their services, and this way you have someone to guide you through the process.
0 votes
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