| Most people know what REO properties are by now. | | | | investment people would lose their lucrative jobs? |
| However, many may still be sitting on the sidelines, | | | | Many retail buyers will shy away from buying from the |
| waiting for bigger discounts. But if you are one of | | | | bank but in many cases these houses just need some |
| these people, you can end-up losing your chance on | | | | cosmetics or curb appeal. The good news for you is |
| benefiting from this big REO buying opportunity. | | | | that the bank is not going to put any money into a |
| You can get a great discount on many properties right | | | | property and the curb appeal will continue to get |
| now and resell them quickly | | | | worse and you will get a larger discount. Although the |
| According to NAR's affordability index, homes are | | | | repairs might be cosmetic, you still want the property |
| more affordable today by around 31 points compared | | | | to be inspected prior to purchase in case you missed |
| to last year. This means investors who buy REO | | | | something. |
| properties today will be buying for less and will be able | | | | Banks with huge REO inventories are more willing to |
| to sell more quickly because properties are now more | | | | consider offers that are below 20-40% of market |
| affordable for the retail buyer. | | | | value |
| Instead of paying 35-40% or more of their salary to | | | | Banks of course are interested in making more money |
| mortgage payments, your buyers today who buy your | | | | from each property. But at the same time due to the |
| rehabbed REO properties will be paying only around | | | | 'extraordinary size of their REO inventory' (due to the |
| 25% of their salaries if they make at least 20% down | | | | deepest economic recession in recent history), making |
| payment. | | | | money for banks today means offloading properties |
| Good REO homes are available | | | | faster to put a stop to escalating expenses and lost of |
| The REO property market do not just consist of | | | | money earning opportunities from capital stuck in |
| homes that need major repairs, there are REO homes | | | | non-performing assets. |
| in the market that are new and even well-maintained | | | | And let's not forget how resilient the U.S. economy is |
| but have just become bank-owned due to | | | | and how the rise of innovative companies during a |
| unanticipated job losses. | | | | recession can pull the economy up once again. |
| Who would have thought that Yahoo, Google, and | | | | So if you are smart you will buy REO properties now |
| Apple would have laid-off a large number of people? | | | | when the prices are still affordable and companies are |
| Who would have thought that high-earning finance and | | | | still scrambling to be more profitable. |