Yesterday afternoon Don and I saw 2 different bank owned (REO) properties.

In Camarillo, there are 4 different developments built about the same time (late 70s) that are duplexes (you buy half the building). One development is on Hidalgo (off Adolfo), the other is on Colony (off Mission Oaks Blvd) and the other two are on Creekside (just up Mission Oaks from Colony, on both sides of Mission Oaks). Historically, the 4 generally have had different price points: Hidalgo (lowest), then Colony, then Creekside (highest).

We saw a newly listed REO for $320k – we thought it was a typo in the listing. The place was re-done with new carpeting and paint and very clean. What struck us was the upwards of $100k differences in asking prices from nearby duplexes currently on the market.

Some history on these duplexes. At the height of the real estate boom, these homes (Creekside) were selling upwards of $500k. Needless to say, the sub-prime credit mess has pummeled their values. But we felt there was excellent value in today’s market for this particular REO property.

In Ventura, a totally different house and totally different situation. Also an REO, this is a 2,400 square foot home in east Ventura that was begun to be completely re-modeled, but something happened and the owner/investor lost it. Many walls have the drywall removed for new wiring and insulation, the old kitchen cabinets are completely gone, the ceilings have been “scraped”, and it’s obvious major upgrades were in the works for this large 2 story home.

The problems as I see it is that only an investor or contractor can buy this home, because most lenders won’t lend on it in its present (unfinished) state. We also think it’s overpriced in its current condition. But for the right person, at a lower price, we think there is great value in this property if you want to basically have a completely “new” home.

It’s fun looking at 2 completely different homes like these!