Purchasing REO Property on Kauai
February has picked up in market activity on Kauai. Out of all my listings it is the REO properties that receive the most inquiries. REO stands for Real Estate Owned property. It is the term Banks/Mortgage companies use to identify those properties they own due to foreclosure. Savvy investors look for REO properties because they know they can often get a property for below market value as banks do not like to keep real property on their books for too long. Many REO properties need some cosmetic and other repairs making it undesirable for the average owner occupant purchaser. This creates a buying opportunity for investors. Currently on Kauai there are approximately 5 REO properties on the market. Kauai Dreams Realty has two listed, Villas of Kamali’i #35 in Princeville (mls#199987 ) and 2900 Aheahe, Lihue (mls#199500). The three others are 5168 Kawaihau Road, Kapaa (mls #204319), 4925 Nonou Road, Wailua (mls#205899) and 5309 Kualono Street, Kapaa (mls#207359)
Banks are unemotional sellers but they do have their requirements. Inspection periods and closing dates are shorter than the average. Proof of cash funds or a prequalification letter usually from the bank that owns the property is now the norm. Kauai Dreams Realty is the REO listing broker for Wells Fargo Bank and a few other lenders. You can email me if you would like to be updated (email) every time a REO property on Kauai comes on the market.
Being a real estate broker or agent for the last 24 years I am a big fan of real estate and bought and own a number of homes, including a REO. I have not regretted any of my real estate purchasers. Did you know that you can purchase real estate for your self directed IRA or Sep IRA? This will be the subject of a future blog. Stay tuned.
Aloha Julie Black Owner/Principal Broker (R) CRS GRI
Kauai Dreams Realty
julie@hisemail.net