Although a lot of people are searching for short sale deals in Orange County and Southern California, there are other ways besides Orange County short sales for real estate investors and first time home buyers to find great real estate investment deals and the properties of their dreams. Here are three proven strategies that anyone can use to find a great deal on a property this month.
Go To the Courthouse
When was the last time you went to the courthouse? The average person tries to avoid the courthouse but for the real estate investor, the courthouse is the place to be for finding great deals on properties. At the courthouse, foreclosure properties or trustee sales are set to be auctioned off on a regular basis and any buyer who wants to purchase a home at these auctions must pay cash for the property. In Orange County and other states, bidding starts on the property that’s being sold before the actual day that it goes up for sale. These additional days are for the homebuyer who is purchasing a home for the first time and it enables them to have ample opportunity to place their bid on the home. If one of the bids that the mortgage holder receives is to their satisfaction, they will accept it and cancel the auction. If the mortgage holder doesn’t receive any bids on the property it will then be auctioned off right on the actual steps of the courthouse.
When the property is auctioned off on the courthouse steps, the mortgage holder has the right to stipulate the lowest offer they will accept and this is called the reserve. Many real estate investors and first time home buyers love bidding for properties on the courthouse steps because, properties will many times be auctioned for far less than what they would normally sell for on the market.
Look For a Fixer Upper Property
Almost everyone is aware of fixer upper properties, these homes are always available on the Multiple Listing Service (MLS) and they offer excellent value to the first time home buyer as well as the real estate investor because, it’s fairly common to find properties that you can purchase for 20 percent off their market value. Like courthouse auctions, buyers must be prepared to pay for a fixer upper property with cash.
There are many advantages to purchases a fixer upper property including:
- The home owner will have the opportunity to make decisions on how the home is decorated and remodeled.
- The person who purchases the home can move in and work on it as they live there.
- The home buyer, you will typically enjoy more house or square footage for their investment
- Fixer upper properties typically have more “charm” than newer properties and for the real estate investor, having a property with “charm” will pay off when they want to sell it.
First Look Programs
In today’s real estate market, many lenders including Fannie Mae have first look programs that give first time home buyers, who intend on living in the property, 13 days to bid on the property before the bids of other real estate investors will be considered. First look programs have been around since 2010 and next to Orange County short sales, fixer upper properties and homes that are auctioned on the courthouse steps, they have given many first time home buyers the opportunity to get into a home for the first time plus they’ve also been successful at helping to stabilize neighborhoods in Orange County as well too because, the bank can have confidence that the property will be sold to the owner/occupant and not a REO investor.