REO Property - Investing in REO Properties - REIClub.com





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Published on Jun 21, 2012

REO Properties Are Abundant In Real Estate. Here's What Real Estate Investors Need To Know About REO Property....

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on REO properties, also known as Bank Owned Property.

What Are Real Estate Owned Properties? (REO)
When banks foreclose on homeowners who have not paid their mortgage, the bank ends up owning the property (called "real estate owned"), after an unsuccessful foreclosure auction. When a home is at this stage, it's available to be sold at a discount because the banks are eager to get rid of the "non-performing asset"

How is this different than a Foreclosure?

The foreclosure sale differs to a REO sale in that Foreclosure sales are done through auctions, and REO sales are done directly through the bank / mortgage company.

Where To Find Bank Owned Property Listings?
- MLS - search/filter "REO", "Bank Owned" properties
- MLS - Realtors - usually the ones with REO experience, good to call
- Banks - mortgage loan divisions - REO Listings - wells fargo, BOA, Chase, etc...
- Realtors with experience in REO's - Online
- Mortgage Brokers - Networking referrals to REO specific Agents
- Auction & Foreclosure Websites - see properties, and find lenders with REO's

Deal Analysis of Bank Owned Properties
- Most REO's are sold "as-is"
- If your new - get an inspection - but, it does hurt speed of purchase towards attractive deals
- Assess Repair costs - some lenders add repair incentives or bonuses
- Tax Liens?
- Currently occupied? Evictions?
- Comparative Market Value - Comps - similar in type and location
- Due diligence

Bulk REO s
Bulk REO are bundles of properties from banks, that are packaged together and sold at a discount. A bulk package is also referred to as a tape. These tapes contain tens or hundreds (sometimes thousands) of REO properties. A tape is nothing more than an excel spreadsheet list of properties.

There are many opportunities associated with REO Properties. You can flip them, rent them, and create multiple streams of incomes. As a real estate investor, banked owned properties enable you to invest in discounted real estate that offer a nice return. But like any real estate investment, its important to remember your due diligence and your profit margins.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.



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