| Especially for novice investors, foreclosures may | | | | down, depending upon which loan you choose. |
| represent financial risks or may be difficult to evaluate | | | | - You have the time to schedule structural, mechanical, |
| in terms of their market value or true equity. Those will | | | | and environmental inspections, and can ask for repair |
| little knowledge of the real estate business may be | | | | allowances for any problems that those inspection |
| intimidated - and rightly so - by the prospect of going | | | | reports might reveal. |
| to the courthouse with a cashier's check for a large | | | | In order to take the best advantage of the REO |
| sum of money to bid on a property they may know | | | | market, it helps to have professional relationships with |
| little about. Of course all of those factors can be | | | | the REO departments of your local banks or |
| managed effectively, prudently, and successfully - | | | | mortgage companies as well as with Realtors |
| which is why investing in foreclosures is one of the | | | | specializing in REO listings. Once you get your name |
| easiest ways to make money in real estate. | | | | on their contact lists, it is easier to get updated |
| But REO properties can offer many of the same | | | | information about properties coming online. Being first in |
| benefits as "regular" foreclosures, without special skills, | | | | line can ensure that you have the first shot at the best |
| insights, or experience. That' s because you can buy | | | | properties before the general public gets involved. |
| this special category of foreclosures - which are, | | | | Keep in mind that the listing prices of REOs are |
| technically speaking, post-foreclosure properties - the | | | | sometimes inflated by brokers, either on purpose or |
| same way you would buy any other home listed with | | | | because of an error in judgment. It always pays to |
| a Realtor. | | | | conduct your own due diligent research to ascertain |
| For instance: | | | | the actual market value or range of values for a |
| - You can browse a large inventory of homes, in a | | | | particular REO at a specific point in time. The most |
| variety of different locations, at your leisure - or attend | | | | successful investors devote a great deal of attention |
| REO open houses. | | | | to studying the market, crunching numbers, and |
| - When buying an REO you can use conventional | | | | scouting out the diamonds in the rough of REO |
| mortgage financing and buy with little or no money | | | | inventories. |