| Buying bank REO's is not an incredibly difficult process, | | | | to see if they will only take cash for the property or if |
| but one that you must learn about. As a real estate | | | | they will finance for a higher price. |
| investor, you have had to learn things down the road. | | | | - You have to ask if the bank will compensate in the |
| You know things that the average individual looking to | | | | case that something is wrong with the property or if |
| buy a property does not know. | | | | the property becomes defective at some time during |
| You know that a strategy is needed, money is | | | | the buying process. |
| needed, and you know that you have to have some | | | | - When looking for properties to buy, it is best to buy |
| initiative to find the best deals possible. As a real | | | | from the bank. The other option is to check the MLS |
| estate investor, you have an advantage over the | | | | (Multiple Listing Service), although the best deals are |
| general public and you have to make that advantage | | | | not available this way. |
| pay. If you're struggling in your endeavors, then you | | | | - Don't go to auctions to buy property, but to identify |
| know that there is something that you're missing. | | | | buyers. Hand out business cards and get theirs |
| If you're struggling, you know that things have to | | | | because not all of those people will obtain property at |
| change so that you not only have an advantage over | | | | that auction. |
| the general public, but so that you have one over other | | | | - Make yourself known amongst the main players in |
| real estate investors. | | | | your area so that you are the one they call when an |
| Bank REO's are full of a lot of opportunity because | | | | REO property is on the market. |
| these are properties that have already seen the | | | | This is how you become aggressive in your investing. |
| auction block. The bank still has the property because | | | | You have to make yourself seen, make yourself |
| they bid on their own auction in hopes that someone | | | | known, and you have to know where to look. It does |
| would bid higher. | | | | take some work, but it is something that you can do. |
| In the beginning, it is about the bank getting as much | | | | And the pay day is well worth it. |
| money as they can, but it later becomes a matter of | | | | As a real estate investor, you have to identify |
| someone taking the property off of their hands. This is | | | | opportunity in order to scale down competition. Bank |
| where you can step in. However, you have to keep | | | | REO properties can provide you with a 35% to 50% |
| some things in mind: | | | | profit. That is something you may not be able to |
| - Sometimes, the bank may have one person working | | | | achieve through other property acquisitions. |
| in their REO department. This means that a loan | | | | If you have never seen profits like that, now you know |
| broker will handle the property. When dealing with a | | | | that they are out there and you need to go get your |
| third party, you do need to be mindful of the details. | | | | fair share. |
| - You can buy directly from the bank, so it is important | | | | |