| Rehabbing bank owned homes is one of the sure-fire | | | | rehab. Remember that the main objective in real |
| ways to make it big in the real estate investing | | | | estate investing is to “buy low, sell high.” What |
| business. With hundreds of thousands of lender-owned | | | | better way to live by that code than paying bargain |
| properties across the country today, rehabbing bank | | | | prices for lender-owned houses. |
| owned homes could be your ticket to that life | | | | 2. Low Repair Costs |
| you’ve always wanted. | | | | Contrary to popular beliefs, you don’t have to |
| But before you buy the first bank owned property you | | | | spend big when rehabbing bank owned homes. The |
| come across with, it’s important that you | | | | trick here is buying the right property. With the glut of |
| understand what bank owned houses are, and how | | | | REO properties in the market today, there are |
| you should go about rehabbing them. Also known as | | | | thousands of repossessed homes that need only |
| real estate owned (REO) properties, bank owned | | | | minor repairs. Remember that many of these houses |
| houses are properties that are owned by banks after | | | | were repossessed from owners who failed to pay |
| they were not sold at foreclosure auctions. Lenders, | | | | their mortgage loans. These properties are not as |
| typically banks, seek to repossess houses when | | | | dilapidated or damaged as most ordinary people think. |
| homeowners fail to meet their mortgage obligations. | | | | 3. Clean Titles |
| REO properties are considered | | | | One big advantage of real estate owned homes is |
| “non-performing” assets by banks, that’s | | | | that they have clean titles. Banks are required to erase |
| why they are more than eager to sell them for bargain | | | | all liens and claims against a property once it becomes |
| prices. This explains why real estate investors are | | | | an REO home. This provides rehabbers a huge |
| now targeting bank owned properties. Listed below | | | | advantage when reselling the property. Selling a |
| are three reasons why rehabbing bank owned homes | | | | rehabbed home with a clean title is definitely easier |
| is perfect for real estate investing, especially to those | | | | than a house with two mortgages on it! Since you can |
| who are new to the business. | | | | sell the property faster, you can then move on to the |
| 1. Cheap Prices | | | | next project. The more rehab homes you sell, the |
| As stated earlier, real estate owned houses are selling | | | | more profits you earn! |
| for pennies on the dollar, making them ideal homes to | | | | |