Investors Hunt for Bank-Owned Property Bargains in Packs

Investor's Business Daily (07/18/08) P. A9; Doler, Kathleen
Experts say investors have numerous opportunities these days to snap up bank-owned properties at discount prices, given that lenders want to wipe them off their books. Solo investors and investor groups no longer tend to negotiate with lenders to purchase single properties, as it is quicker and less expensive to negotiate for bundles of properties or even entire subdivisions. According to Mike Sarwari, president of the National Real Estate Investment Club, "We're looking at long-term holds of three to five years, properties that will (generate) cash flow (via rental income) with 10 percent down." Investors must perform due diligence by checking for second mortgages and other liens, and some are reducing risks by purchasing only in the Sun Belt--where rental markets remain robust--or by insisting on 2001 prices.