When the property is not able to make maximum profit at a foreclosure auction and the bank or the lender will take the property back and if they are a financial lender the property will turn into REO (Real Estate Owned) property. These lenders are generally not concerned in maintaining REO listings for too long, as the banks or the financial institutions doesn’t deal in the real estate business therefore hastens in liquidating the REO property as soon as possible. This creates a wonderful opening for the real estate investors to deal into. Still, one must keep in mind that every REO listing is not a good deal to cash in, but generally it is seen that any REO property enables the investor to make good cash.
However REO listings have its some strengths and weaknesses. First advantage of purchasing REO listings is that REO listings are of low rates than the original market price and the reason being that REO listings are the properties owned by the banks. Since it’s a bank property, the bank is responsible to pay all the taxes and the liabilities of that property so the banks prefer selling them as quick as possible at a lower price as the market value. The other plus point of getting a REO listing is that they have lesser competition than the other real estate properties. As very few real estate investors are aware with REO listings.
Last but not the least another benefit of REO listings is that REO listings are very simple and easy to find as many banks possess such properties and are want to sell them as soon as possible.
Apart advantages the one biggest drawback of getting a REO listing is that you have to buy the reo house as it is, in the same position means for every connections reconnection you have to run here and there to get them reconnected. The other weakness of purchasing a REO listing is that all the expenses and repairing which have to be done will be done on your expenses, so before buying the property take a look around on what all major and minor repairing have to be made. Apart these an additional disadvantage is, that you wont be able to know about all its past details and the only solution to this problem is doing some research work on the property. And the best place to look at its public records.
Despite having various advantages and disadvantages there are few tips that should be kept in mind before buying any REO listing such as you should always prefer consulting a real estate agent as it can help you in making some real great deals.
If you have to sell your house in a short span don’t get hyper as then also good some real estate investors are available.
The other great resource through which you can get umpteen number of good real estate investor is internet; loads of options are available regarding the investors on the net.
However bargains can also be made for purchasing reo foreclosures property through VA, HUD, distress sellers, fixer houses, multiple listings.
You can also look for more bargains on US REO Properties.
