Profiting From Foreclosures and REO Properties

Everyone knows someone whose house is beingadvantage of this opportunity?
foreclosed on. Sad for them. Great for you. Why?Fortunately for you, there are many other smart
Buying foreclosed properties is the single greatestpeople who can see the value to be created in the
wealth building opportunity available to ordinaryREO / foreclosure market. Their problem is that they
Americans today.lack the time and expertise to buy and manage the
Banks are taking back more properties than theyproperties. They would be very happy to have
know what to do with. Recently, a Bank of Americasomeone like you put in the time and effort in
employee casually mentioned to a conference ofexchange for a piece of the action. But where do you
home builders that the bank was planning to increasefind these people, and how do you negotiate the
the pace of foreclosures from 7,000 per month todeals?
45,000 per month.Here are some helpful hints for finding the money you
That's more than 500,000 homes this year. There isneed to get into buying foreclosed and REO homes in
literally no chance that normal, everyday home buyersa big way:
can absorb all of the properties BofA will foreclose on1. Speak with your lawyer and / or accountant: They
this year, and that's just one bank!know many people with extra money, many of whom
Here's where you, the investor, come in:are interested in getting into real estate while the
As an investor, you can move more quickly than amarket is at its bottom. They may be happy to make
normal home-buyer. You don't have a spousethe necessary introductions for you.
hemming-and-hawing about the drapes or the color of2. Join the local chamber of commerce: If you want
the walls or whether your kids will like themoney, you need to get to know local business
neighborhood. You are dispassionate; you think ofowners. These are the type of people who have
homes as investment opportunities and nothing more.access to a spare $100,000 and the appetite for risk
That lets you make decisions about potentialnecessary to bet on you.
acquisitions much more quickly than average3. Network with local real estate agents: They have
home-buyers, who are you competition.clients who are thinking the same thing you're thinking.
The only thing holding you back from buying many,They would love to put you together and maybe earn
many properties is money. Sure, you may havecommissions when you buy and, eventually, sell your
banked enough to buy one or two foreclosedproperties.
properties. And maybe you can borrow a bit more. ButWant more ideas for profiting from the foreclosure
this opportunity dwarfs the resources that you havecrisis?
available. How do you find the money to take