| With REO properties flooding the market, is it time for | | | | Also, it is very likely that the REO property "chased |
| you to add them to your real estate investing | | | | the market" all the way down to rock-bottom before |
| business? | | | | the bank finally took possession. Now, they are |
| The simple answer is yes! The fact is, REO properties | | | | competing with the rest of the properties on the |
| make up the majority of "REAL DEALS" in this market | | | | market and need to discount the properties even more |
| and you need to be taking advantage of this great | | | | just to compete with the competition. Remember, they |
| opportunity. | | | | NEED to get rid of their REO inventory and get back |
| Here are 5 reasons REO properties are the way to | | | | to their main business of loaning money. |
| go! | | | | 4. Low Value No Longer Means "Trashed" Property |
| 1. Bank Has Already Taken Loss First and foremost, if | | | | Use to be that the vast majority of REO properties on |
| the property is an REO, then the bank has most likely | | | | the market probably ended in a long, lengthy rehab. |
| already gone through a lengthy and expensive | | | | While rehabbing is a great option for many REO |
| foreclosure process and hasn't seen a nickel on the | | | | properties, it may not be for everyone. The good |
| properties for the last 1 to 2 years. Long story short, | | | | news is that many of the REOs coming on the market |
| they have already conceded and taken the majority | | | | today are actually in great shape. That means you are |
| of the loss. Their main focus now is to simply get rid of | | | | getting a property at a rock-bottom price that doesn't |
| the property as quick as possible. | | | | need much work (or money) at all. |
| 2. Banks Make for BAD Landlords Banks also don't | | | | 5. Less Time - More Deals Another great aspect |
| make for great landlords and have no intentions of | | | | regarding REO properties is that your start-to-finish |
| being landlords. Banks make their money off loaning | | | | time for your deals is cut in half. For many of the |
| money; not own defaulted properties. For several | | | | reasons listed above, negations are normally quick. The |
| reasons along with several federal regulations, the best | | | | banks really have no emotion involved which can |
| thing for the banks to do is to get these properties off | | | | make negotiations go faster and more businesslike. |
| of the books and move on. This means deep | | | | Generally, once you've agreed on a price, things move |
| discounts for you! | | | | pretty fast. This means less time on each property |
| 3. Property Chased the Market All the Way Down | | | | and more deals! |