It seems that in Minnesota (MN), BANK OWNED FORECLOSURE LISTINGS can be bought on the cheap! Traditionally, when a bank owned (REO) foreclosure listing goes to the market, the foreclosure asset manager will list the property with a brokerage, which in turn will put said property on the MLS. Thus, if buyers like to SEARCH THE MLS for Minneapolis/St. Paul/Twin Cities foreclosures, that listing will show up. The asset managers will work with a real estate broker to market their foreclosure that way for 90-365 days. If the foreclosure property cannot sell during that time with listing price reductions and/or rehab and updates to the foreclosure, then the bank/asset manager might turn to an auction company to sell their foreclosure.
We have a listing in Eagan, MN that is a Fannie Mae bank owned (REO) foreclosure. This Eagan Foreclosure Town Home was updated with new paint and carpet and listed on the MLS for $99,000. It was then reduced on the MLS to $93900, then to $77900. After 106 days on the market, the bank said it’s auction time. Fannie Mae selected Hudson and Marshall http://www.hudsonandmarshall.com to sell this property at thier FORECLOSURE AUCTION in Bloomington, MN @ the Sheridan on 2/5/2011.
Well, today this unit was “sold” for $21,500 ***subject to bank approval*** at the Bloomington, MN foreclosure auction. Who says their isn’t great deals out there! If you are a Minnesota Real Estate Investor, looking for deals the pump out POSTIVE CASH FLOW, it doesn’t get any better than this! This Eagan, MN foreclosure listing would likely generate $900/mo in rent, taxes are about $100/mo, HOA dues about $200/mo and mortgage payments on $21500 over 30 years @ 6% = $129/mo, also adding liability insurance $50/mo, you are sitting on a CASH FLOW Eagan, MN good investment property. RENT $900, less $479 in total expenses = $421 in positive cash flow per month or $5052 cash in your pocket every year! (and that’s not taking into account tax depreciation)! Also, don’t forget about appreciation! How much do you think this unit will be worth in 10 years? $90k? $150?
I know how to help you find these deals! I have all the systems in place to teach you how to be a grade A landlord and how to mitigate renter headaches. If your looking to make some real $$$ via real estate investing, please contact me today @ 612-924-7140 jdschuster@cbburnet.com
If your thinking of buying a MN Minnesota Bank Owned, REO, Foreclosure in Minneapolis or St. Paul, one thing you should check on is to see if it is registered vacant with that city. If you are a foreclosure investor and your looking for Minneapolis or St. Paul homes to flip or rent out as investment property, you must do your due diligence. There are some bad agents out there that do not classify their Minneapolis Foreclosure Listings or St. Paul Foreclosure Listings as registered vacant (if in fact they are registered vacant). They either don’t know Minneapolis Foreclosure/Vacant Building Rules and Fees and St. Paul Foreclosure/Vacant Building Rules and Fees. Below are links to The City of Minneapolis Vacant Building List and The City of St. Saint Paul Vacant Building List.
City of Minneapolis Vacant Building list: http://www.ci.minneapolis.mn.us/inspections/ch249list.asp (click thru link, then scroll down to “Current List of Buildings Registered As Vacant” and click on updated PDF of vacant Minneapolis properties)
Know what your getting into… fees can run into the thousands when dealing with vacant building fees and Minneapolis or St. Paul Code Compliance Inspections. If your are thinking of buying a Minneapolis Foreclosure Listing or a St. Saint Paul Foreclosure Listing, contact an REO/Foreclosure Broker! John Schuster is Coldwell Banker Burnet’s #1 listing agent and sold 246 homes in 2010. For a free confidential meeting to discuss your Foreclosure Investment needs, please contact John @ 612-924-7140.
What is going to happen with Hennepin County, Minneapolis, St. Paul, Twin Cities REO – Bank Owned – Foreclosures in 2011, all reports sale that more foreclosures are coming….
Minnesota FOX 9 has a great report about MN Minnesota/St. Paul/Twin Cities 2011 Foreclosures:
This news piece on MN Minnesota Bank Owned REO Foreclosures spells out what we really need to fix this Foreclosure mess. We need buyers to buy these Twin Cities Minneapolis Saint Paul REO Foreclosures! The problem can be getting financing for these types of properties. Any first time buyer should find FREE DOWNPAYMENT CASH when financing their purchase of a bank owned foreclosure. One of the best resources I have seen is: http://www.mndownpaymentassistance.com/ via the programs offered by Joy Bender, Lake Area Mortgage – buyers have been getting up to $8500 in down payment assistance. For more info, Joy can be reached via email @ jbender@lakeareamtg.com or (612)227-2065.
Here is a quick snap shot of MN Minnesota, Twin Cities, Minneapolis, St. Paul Real Estate Market, by John Schuster, Broker Associate, Coldwell Banker Burnet, Minneapolis Lakes Office.
The Twin Cities is home to many Fortune 500 companies, including familiar names of 3M, Thompson Reuters, Ameriprise, Best Buy, Target, Boston Scientific, Cargill (see link below for Top 50 MN companies). All of these companies have at minimum seen hiring freezes, if not layoff, buyouts to push people into retirement or outsourcing. The loss of Northwest to the merger with Delta has seen the loss of 2000+ jobs at NWA headquarters in Eagan, MN.
Although MN’s unemployment level is lower than the nation, many people have become under-employeed which is leading to a surge in short-sales and eventually REOS. Since the lapse of the tax credit, we have seen an increasing inventory and slowing absorbtion rate.
Here is a quick snap shot of our Real Estate market Comparing December 2009 to December 2010:
REO (Foreclosure/Bank Owned) PENDING SALES ARE UP 36.5%, SHORT SALES -1.3%. TRADITIONAL SALES -8.1%
REO (Foreclosure/Bank Owned) INVENTORY IS UP 81.8%, SHORT SALES +0.4%, TRADITIONAL SALES -1.3%
REO (Foreclosure/Bank Owned) CLOSED SALES ARE UP 10%, SHORT SALES -27.8%, TRADITIONAL SALES -6.7%
AVERAGE DAYS ON MARKET: REO 119, SHORT SALE 208, TRADITIONAL 139
BREAKDOWN OF TYPE OF INVENTORY
22319 TOTAL LISTING
16172 SINGLE FAMILY (72.4%)
4048 TOWNHOMES (18.1%)
2099 CONDOS (9.4%)
We have an increasing inventory of distressed sales (Reo and Short Sales) with fewer buyers that are ready, willing and able. I sence that many buyers are waiting for another 10-15% market decline before they act. Investors would normaly be there to pick up the slack from the owner-occp buyers, but flips have become extereemly diffuclut in a declining market and fewer qualify for investor financing (or cannot meet the required investor down payment requirements). Without a postive change with buyer confidence and abiltiy to act, we likely will see a 10-15plus% decline in prices. Prices will likely see a further decline if interest rate rise up 6%. In today’s Buyer’s Market, you need to find an experienced REO Foreclosure Agent to navigage all the real estate pitfalls. Contact John Schuster @ jdschuster@cbburnet.com 612-924-7140 Search MN Minnesota Foreclosure REO Bank Owned Homes @ http://mnforeclosureproperties.com/map-search/http://mnforeclosureproperties.com/hnav/search-foreclosures/
Here is an interesting scenario, you put in an offer on a bank owned, reo, foreclosure home, you offer is higher than any other offer, and you don’t get the home? This allegedly happened to a couple looking to purchase a Brooklyn Park, MN Minnesota twinhome. The Star Tribune reported that The Minneapolis Area Association or Realtors will be holding an ethics hearing on the matter. Realtors, agent, brokers are required to presents “any and all written offers” for real estate. The buyers for this Brooklyn Park, MN listing had brought the “highest and best offer” and found out that a lower bidder got it.
From The Star Tribune, 11/26/2010,
Couple lose out on home; Realtors face ethics case
“From the moment Erica and Mike Lenzen saw a foreclosed twin home for sale in Brooklyn Park, they thought it should be theirs. They even put in a no-strings-attached offer $8,000 above the asking price. But the home was sold to someone else. The Lenzens got suspicious when they learned the house sold for $2,000 less than their offer. When Mike Lenzen tracked down the bank representative in charge of selling the property, she told him she had no record of receiving the couple’s offer. Despite all the regulation and disclosure, buying a home can be a secretive process. Buyers are largely at the mercy of what sellers and their agents tell them. It’s especially mysterious these days, as foreclosed homes flood the market and the banks that own them make sales decisions that sometimes defy explanation. Most buyers who lose out on a deal just move on. The Lenzens spent weeks investigating the transaction and scrutinizing documents. They are convinced their offer was withheld by the bank’s agents at EXIT Realty Metro. They’re not quite sure why, except that the winning bidder, an investor who plans to rent it out, had no agent, allowing EXIT Realty to earn a larger commission.”
If you are thinking of buying a foreclosure home, condo, townhome, twinhome or land, you need a good buyer’s agent to ensure your offer is presented and received and that you have all the info to put in the best offer. It is important to work with a Realtor/real estate agent that knows REO Foreclosure properties. Although there will be other listings in the Brooklyn Park area for these buyers and I am sure they search the MLS daily for new bank owned deals, they felt they were slighted in this deal and they want justice! Brooklyn Park borders on Brooklyn Center, Fridley, Champlin, New Hope and Maple Grove Minnesota. – John Schuster is the #1 Listing Agent with Coldwell Banker Burnet in 2010 and is a leader in Foreclosure/Bank Owned/REO properties and listings.
Fabulous Saint St. Paul Como Neighborhood opportunity!
1497 Pascal Street N , St. Paul, MN 55108, St. Paul Homes for Sale, Ramsey County Foreclosures for sale, St. Paul Foreclosures for sale. 1 1/2 Story Home in Charming Como Area Neighborhood on Corner Lot. Endless Amounts of Potential with Rehab and Updating! Front Porch, Main Level Office, Deck & More!
Great Opportunity for owner occupants or investors! Some TLC and cosmetic rehab needed. Handyman special!
Fabulous Bank Owned REO opportunities are presenting themselves around the Twin Cities (Minneapolis and St. Paul) area. A great opportunity for an owner occupant or investor is available in Eagan, MN. 4078 Meadowlark Lane Eagan, MN 55122 2BR Town Home $99k. Eagan, MN Foreclosures for sale, Eagan MN REO. www.JohnSchusterGroup.com Charming Move-In Ready 3 Level Townhome. Freshly Painted and New Carpet! Association is Working on Deck Renovations. Endless Amounts of Potential.
It looks as if Twin Cities (Minneapolis & St. Paul Saint Paul) Foreclosures (REO) activity is on the rise. What does this mean for you if you are an investor or home buyer? A good deal!
Yesterday, there was an article in the Star Tribune by veteran reporter ( Jim Buchta • 612-673-7376 jbuchta@startribune.com )
“With foreclosures still entering the market at near-record pace, inventory levels continue to rise. And even though the number of new listings slowed last month, total inventory is 10.6 percent higher than last year at this time. That, coupled with a decline in sales, has caused the supply of houses on the market to increase from 6.1 months in October 2009 to 8.2 months last month. That means that at the current sales pace and inventory levels, there are enough houses on the market to last 8.2 months if no new inventory were added.”
Twin Cities housing prices are going to continue to decline, it’s simple supply and demand. Bank owned REO foreclosures, short sales continue to rule the market. With an increasing supply of these distressed sales on hand, regular sellers can have a difficult time competing! Investors have been picking up investment property (Duplexes, Triplex, FourPlex 4-plex) and such a discount, they CASH FLOW with very little money down! First time buyers can now purchase affordable homes! (although if they are using FHA financing, which they all are, the home must be in FHA -able condition) – John Schuster, Top REO Broker in the Twin Cities area!
Q3 Minneasota REO Foreclosure stats are out and MN Twin Cities (Minneapolis and St. Paul) Hennepin County, Ramsey County, Dakota County, Carver County, Washington County, Anoka County and Scott County bank owned properties are on the rise.
St. Paul’s Pioneer Press stated:
“Foreclosures in Minnesota are on the rise again, climbing more than 23 percent in the third quarter from a year earlier, with the metro area driving the upward trend. Statewide, foreclosures in the third quarter hit the second-highest level on record at 7,254. The only quarter with a higher level was the third quarter of 2008, when the state reached 7,349 foreclosures, according to Friday’s report from HousingLink, a Minneapolis-based nonprofit that studies housing issues.”
This could spell trouble for the Twin Cities real estate marketplace. Real estate prices might not start to see an upswing for years to come and Bank Owned REO Foreclosures continue to pull down on home, townhome and condo values! The upside? If you are a real estate investor looking for Single Family Homes, Duplexes, Triplexes, Fourplexes and other multifamily properties can get a sweet deal! If you looking for CASH FLOW investment properties, you can actually find them now! If you are a home buyer (and do not need to sell a home to buy a home) there may never be a better time to buy!
If you are looking for Fannie Mae or Freddie Mae (GSE) bank owned REO foreclosure, they have direct access via:
If you like to SEARCH THE MLS and have been looking for a Minneapolis Duplex for sale,
this could be the one! This is a bank owned foreclosure REO Minneapolis Duplex and has just
been reduced to $94900! This duplex has 1-3 bedroom unit and 1-2 bedroom unit.
Incentive! Seller Will Pay 3.5% of Sales Price Toward Closing Costs w/Own/Occupy Buyer. Great NE Mpls Up/Dn Duplex Investment Opportunity. Spacious Flrplns,Lg Rms,Hwf,Off-St Pkg,4 Seas Porches,More! Mins to U of M,St Anthony Main,DT,Shops/Entertainment
If you are looking for investment property and searching for Minneapolis cash flow duplexes, contact John Schuster @
