Bend and Central Oregon Real Estate Investment
With challenging economic conditions across the nation, Bend Oregon real estate investments have increased dramatically in popularity. Many investors are seeing a variety of real estate opportunities in Distressed Properties like Bend bank owned, short sale and foreclosure real estate. They are proving to be very lucrative ventures offered at very attractive prices. If an investment is in your future…Select a category below that matches your interest. Whether it’s rental income and investment properties, or multifamily and building lots, the listings are at your fingertips! Check out the Distressed Resort Listings for foreclosures, REO, bank owned and short sales. Contact Us today and receive personalized service, current listings in a real time format, along with extensive knowledge of the Bend Oregon real estate market from those who know it best!
|Income/Investment||Lots & Land||Multi-Family|
|Foreclosure & Bank Owned||Short Sales||Distressed RESORT Listings|
If you would like a personalized list of Investment Properties submit your request here.
In Bend Oregon,distressed real estate, foreclosed home listings, Short sale, REO, and Bend bank owned properties have become very popular with a variety of buyers including investors, first time home buyers and those retiring or relocating to Bend. The large inventory of distressed property is keeping home prices low in all sectors. Bend vacation and second home buyers are showing a new, increased interest in Bend distressed property listings. Because they are generally priced below the traditional real estate market, many buyers can now afford to buy.
It is important for all potential buyers especially first time home buyers, to know that Bend Oregon short sales differ from normal real estate transactions. First, and arguably the most important part, is the mortgage holder is involved and can deny any offer at almost any time. The owner of the property is nothing more than a minority partner and almost always signs any offer that is presented. The listing agent deals directly with the lender (usually a bank) throughout the short sale process. As a buyer you must allow extra time for responses from the lender due to present market conditions. Unlike the normal real estate transaction, a short sale can take two to three times as long to complete. You can also expect the lender to insert a clause giving them the option to cancel the agreement at any time, up to the day of closing. It is also not uncommon for there to be more than one lender involved in a short sale property. Such as a second mortgage holder. And don’t forget about Fannie and Freddie. They all can kill a deal with one stroke of a pen and dash your plans for home ownership in Bend Oregon. However, the rewards for being patient can be very gratifying and lucrative. You have to stick with it and don’t take anything personal. Always remember you are dealing with a banker who’s only concern is getting as much as possible for a property. Other hurdles can pop up during any distressed real estate transaction. I would not suggest navigating a short sale or any other distressed property transaction on your own. You need a experienced Bend Oregon real estate professional in your corner.
The volume of buyers pursuing distressed homes for sale has increased dramatically. Bank owned, REO, or Bend foreclosures are becoming a more popular way to invest in Bend real estate. These transactions generally are not as time consuming or stressful as a short sale. Buyers and their Realtor have only the bank to deal with. The inventory of distressed property has increased. Bend foreclosures, REO, Bend bank owned and short sale property listings have contributed to the decline of prices throughout the market. Did anyone ever think real estate prices would drop as much as 50%? Did you ever think you could afford an vacation home, second home or investment property? Bend property investments will remain in demand for years to come but probably not at these low prices. Take advantage of the distressed real estate market. Bend foreclosures, REO and bank owned properties are plentiful and are priced to sell. For those who can be patient a short sale may work for you. An investment now will be very rewarding in the future and a move you’ll be glad you made!.
There has always been an active interest for moving money into a real estate investments. This year, 2009, will be a little different. This year is going to be mush busier. This is due to the ample and increasing inventory of distressed properties. Short sales, foreclosures, REO and bank owned and the competition between sellers, is driving down prices. Investors, and other buyers, are falling over themselves trying to be the first offer on low priced, prime real estate. It’s not just “want to be” investors looking for and getting great deals. First time home buyers are taking advantage of the lower prices in Bend as well. Be careful making offers. It´s not uncommon for banks to put unusually low prices on distressed properties just to get a bidding war going between potential buyers. And it works well! Moving up to ownership of Bend Oregon real estate can be very exciting! This is just one of the tricks you can expect to see when pursuing investments in distressed transactions. If you´re interested in more investment strategies, contact us. After all, the next best “buy” could be just around the corner. Now is a excellent time for investing!
Mid January is the time to think about investments. Over the winter months we experience our annual decline of property listings in Bend and Central Oregon. The decline has stopped and new listings are being added daily including distressed homes and property. These REO, Bend bank owned, foreclosed or short sale properties, have made this a good time for retirement, investing and relocation plans. Some people have purchased distressed real estate in Bend over the winter and have gotten great deals. A number of them have invested now for future retirement, or relocation. Would you be interested in relocating or investing in Bend Oregon? Short sales are for those who don’t mind the extra effort involved in getting a good deal. They can be frustrating and take a long time to close. Bend real estate investments have always been rewarding and now their even better. At this time listings are plentiful. Deals can be realized by shopping short sales, foreclosures, REO and Bend bank owned properties. But don’t overlook owner-seller listings. Their pricing has been effected by the increase of distressed homes and property for sale. Only having to deal with an owner and their Realtor may be the way to go. Start today and watch for price reductions as the weeks and months go by. The first price is rarely the best price. Retirees and those relocating to Bend can use the same strategy but must be aware these are not normal real estate transactions. You will be dealing with lenders who’s only concern is how much they can get for the property. Timely, courteous responses to any offer or request for information are not likely. Believe your Bend real estate agent when they tell you not to take anything personal and be patient.
It´s selling season and the Bend Oregon Real Estate market favors buyers. There is still a large supply of traditional listings, short sales, Bend foreclosures and the inventory of banked owned, and REO listings has risen and are forcing prices down across Bend and Central Oregon. This is the perfect time for buyers who have financing or cash on hand for investing in Bend. What will make things even better for would-be buyers, is that distressed listings have increased. That´s right. More distressed property listings in Bend and all those who want, or have to sell property are getting nervous. Every year around the second week of September through January is the time to shop. From Thanksgiving week through January inventories shrink due to the holidays. Exciting investment opportunities in vacation homes, Bend area second homes and all Central Oregon real estate still exist. Some sellers withdraw their listings feeling they will get a better price when spring arrives. The great deals remain available for qualified buyers. The prime selling season is short in Bend. It starts in mid April and goes through August.
There are 4 players in this year´s real estate market that seekers of investments or other Bend real estate need to watch closely. Short sales, Bend foreclosures, REO, and Bend bank owned properties will have an impact this year. Remember, they´re all bank or lender controlled and can take longer than a normal sale to close. Our guess is the banks and lenders who have Bend distressed property won´t want to hold through the winter and will be more cooperative. Only writing an offer will tell. Other great investments can be found in lots and land, multi-family, nightly rentals, and 1031 exchanges. Vacation and second homes are also attractive. We feel Bend is the right place, right now, for Real Estate investment, relocation and retirement. This is a very desirable area to live, and the interest from around the country for relocating and investing this summer has been amazing. There will never be a better time for property investment in this area of the Pacific Northwest. Buy now while selection is good, and prices are at or near the bottom. Remember all real estate is local. What ever the market is doing in your area may mean nothing some where else.
There are strategies used by Seller´s Agents just as there are strategies used by Buyer´s Brokers who represent investors, speculators and relocation type home buyers. The following is an example of what you can expect when searching for real estate investments in Bend and Central Oregon. Our Multiple Listing Service (MLS) system is set up so that as an Agent lists a new property for sale – the first 24 hours after the information is entered into the system, it is placed in the new listing category. This is true for multi-family, nightly rentals, lots and land, income property and residential monthly rentals etc. It is visible on the MLS home page for all the Agents to see. It also appears on property searches Brokers have set up for home, property and real estate investment buyers. It’s typically emailed to each client the property “matches”. If you are selling a home, investment or what ever, you want as much exposure to as many eyes as possible – as often as possible. Remember, Agents are obligated to get the best price for their clients so they use the system as much as they can. A strategy commonly used is to price the new listing at the top end of a determined price range. This is done for two reasons. One, someone looking for a Bend investment may come along that just has to have the property, and will pay full asking price. (Not likely in this market) The second reason to price high, whenever the price of a listing is reduced, the listing pops up again in the price reduced category for all to see. And again, the listing appears on auto searches that Buyers Brokers email to their clients. The same is true if the property has been off the market and is put back on, or if the price is raised. As a buyer of Bend Oregon investment property or a “want to be Bend home owner, you and your Agent need to establish an initial list of properties that fit your investment-home purchase criteria. Check the history of those and see how long they have been on the market. Keep in mind that new or relatively new listings are at the top of their price range. In today´s market it is normal for asking prices to be lowered as time goes by. You want to be patient.
Trades, Exchanges and Contingent Sales
Lets talk about contingent sales, trades, 1031 exchanges and lease back strategies. But first, I want to remind everyone that Real Estate is local. We all hear about the terrible housing market on TV news broadcasts and we read about it in newspapers. Every state, city and town across the nation has been effected by the declining Real Estate market. States like California and Florida have been hit much harder than Oregon, Washington and North Carolina for example. Portland, Seattle and Charlotte, NC are all holding up very well compared to other major cities. In our area, Bend Oregon, the real estate market is being effected by the large inventory numbers and the increasing supply of short sales, foreclosures and REO-bank owned properties. For investors shopping for these types of is the way to go. When investing in Bend real estate you should take advantage of the present buyer´s market and get the best deal possible. Banks know that the prime selling season in the Bend-Central Oregon area is from May through September. Banks do not want to be property owners - they have to sell. And the longer they hold a property, the lower the price. In a nutshell, Banks want to see all reasonable offers. You can also request a list of short sale and REO-bank owned properties by using the link at the top of this page.
In a buyer´s market it is common and acceptable to write offers with contingencies. You may have a house to sell or have some personal property to liquidate before you can close the transaction. Maybe you want to wait for some CDs to mature or an inheritance to become final. Getting a good deal on an investment property that you want, but can´t close on for awhile, is not a barrier. You may think of this as the “layaway plan”. Remember, writing contingencies probably won´t work with foreclosures, short sales and REO-bank owned properties, as the lenders want to close right away, but don´t overlook the properties it will work with. Another strategy is to find a short sale investment property that is still occupied by the owner. Have them lease it until you are ready to either relocate to Bend or perhaps flip it for a profit at a latter date.This is a win-win situation for both parties. After all, they still need a place to live and many homeowners have now become renters. Another way to procure investment Real Estate in Bend-Central Oregon is to trade. Maybe you have a condo in Hawaii or something in Mexico and now Bend is on your radar. With a little creative advertising and patience you can trade for one of the great homes here in Bend. Some money for closing costs and maybe a little for any difference in value, and you´re done. This arrangement could also be a 1031 exchange and you will need professional help for sure. If you decide to trade your primary residence for a new property that will also become your primary residence then you would not need to use the 1031 exchange process. We can guide you through any of these processes when you find that perfect deal. As Buyers Brokers, we are charged with finding you, the Buyer, the best deal possible. We want to represent you! At Bend Oregon Homes Online, we feel present market conditions should´nt stop anyone from achieving their real estate investment goals. With our years of experience and creativity you´ll get that great Bend Oregon property.
Representation – Loans and Mortgages
I would like to start with some information that is often overlooked. It´s about representation, especially Buyers representation. I touched on this in our last installment. In Oregon, anyone who sells Real Estate, and receives compensation, must be licensed by the State as either a Real Estate Broker or Principal Broker. The difference between the two is the Principal Broker´s license requires the holder to oversee the activities of Real Estate Brokers. Each real estate office must have a Principal Broker. Both can represent either buyers or sellers. When a Broker lists a property his obligation is to his/her client, the Seller, to obtain the best deal possible. The Seller has full representation. As a Buyer you need your own representative. You need a Buyer´s Broker, someone working for you to get the best deal possible. If you see a property listed online that interests you, don´t call the Listing/Seller´s Broker, call your own Real Estate Broker. A good Buyer´s Broker knows the questions to ask and will be working for you.
Also in Oregon it is legal for one Broker to represent both a Buyer and a Seller in the same transaction. They simply must disclose the dual agency representation and have the consent of both parties. But I have to ask – would you use the same lawyer in a lawsuit your opponent is using? No, you likely wouldn’t. Many Real Estate Brokers will not work both sides of a transaction.
Real Estate contracts are legal binding instruments and must be handled properly for both, buyer and seller. There is nothing to be gained from sharing a Broker. When you begin your search for land, builders, new construction, existing homes, or any property at all, have your own Broker. You´ll be glad you did. We work as Buyer´s Brokers and have your best interests in mind!
We have all heard that mortgages are harder to get now and that you need income verification, higher credit scores, and money for a down payment. There are still a number of loans available that can help buyers purchase homes with no or very little money down. FHA will make loans with as little as 3% down for owner occupied property. Another program allows the seller to contribute the money towards down payment and closing costs. These are perfect for people who want to hang on to their cash but still buy a home. And these programs can help sellers get their home sold too. The Oregon Bond Plan assists first time homebuyers. There are still some 95% loans available and low documentation loans too. Investors can still obtain 75% to 80% non-owner occupied money. This information is for the time this article was written.
Here is a strategy using two of these loans. First, get in touch with a local Mortgage Broker that handles all the above loans and get pre-approved. We can help with that. Next, find a short sale, foreclosure, REO-bank owned property or really good buy and make an offer. Assuming your offer is accepted you can use one of the above loans that is the most compatible with how you wish to use the property. For investors that want a short-term Bend real estate investment, use the non-owner occupied loan to buy, and rent it out. Next, market it using the no money down loan as the incentive. You will need to factor in some money for your renter´s cooperation. We are seeing this more and more. Of course you have to get a great buy on the right property. If you are not an investor and have little or no money, but great credit or a good paying job, one of the above will work for you. There are many ways to buy investment property here in Bend and I will share more with you in the future. For now, contact us and we´ll start looking for that great Bend real estate investment. After all it´s THE BEST BUYERS MARKET IN 20 YEARS!
Buying Now for the Future
In this installment we want to share some ideas pertaining to investing in the Bend real estate market for the future. Many people we talk to want to take advantage of the BEST BUYERS MARKET IN 20 YEARS, but for a number of reasons haven´t done so yet. We can help. One plan that works well is to purchase an investment property at one of the great Central Oregon resorts or possibly buy an existing rental property in Bend. You can continue to rent or lease it until you´re ready to relocate here or exchange it for another investment property. One problem with this plan is many of you don´t want to be landlords. And who is going to care for your property the way you would? Besides, the whole idea of owning property in Bend Oregon is having the ability to enjoy it. We have a solution to that dilemma.
Consider a Vacation rental investment. Buy and furnish a home, include a hot tub, game table, (pool, ping- pong etc.) board games, croquette, badminton, bicycles. Make your vacation rental-second home a fun place that will attract vacationers who wish to rent a home while in The Bend area. See the idea? These are called nightly rentals and are popular within the real estate investment community. Oh, and don´t forget extra beds. Remember you are going to put your great Central Oregon investment getaway in the nightly rental pool. There are a number of services that will take care of everything from advertising to watering the lawn. Some people have the time and talent to manage their investment properties, and do very well. Think twice before you go it on your own. This is a investment strategy that has a great track record and can be very lucrative. You have your personal vacation home available whenever you want it, and if you work it correctly, there could be little or no cost to you. There are countless variations to this scenario. My favorite is to invest in something that is already established in the nightly rental pool. Even better is find one that rents out enough to pay the mortgage! Nightly rental investment properties are available at all the area resorts and can also be found in Bend. There really is now where in Central Oregon this investment strategy won´t work to some degree. When you´re ready to move here permanently, you´ll have a place to call home.
If none of the above scenarios suits you but acquiring investment property in Bend Oregon is still your goal, think about this. Individuals could get together as a real estate investment group and invest in property as “fractional” owners – tenants in common. Each could have equal share in the investment and the right to sell their share at any time to anybody. Dividing the cost of a vacation rental, apartment complex, or other Bend real estate per month by 3,4 may work. You will be able to invest in Bend Oregon real estate at a fraction of the cost. Be aware that sharing ownership in any investment property means sharing all related costs and liabilities. You would be wise to consult an attorney on this one.
In the last Buying Strategies installment, Short sales, Foreclosures and REO-bank owned properties were the topic. You could combine those strategies with any one of these and really get a “big bang for your real investment buck”. Before entering into a Bend Real Estate transaction, get your own representative. A buyer´s agent is obligated to get the best investment deal for the buyer. Listing/sellers agents are obligated to get the best deal for the seller. That makes it difficult for one person to represent both and be fair. Contact us first! We are Buyer´s Brokers and experts at serving clients from outside the area