By now, you’ve heard about the rise between foreclosures and REOs and you’ve likely seen the real proof that more and more homeowners are losing their homes.
REO stands for owned real estate and that is what property becomes after the bank forecloses and no one makes an offer on the foreclosure sale.
After the bank repossesses the property from foreclosure, now the property is there. In other words, they are responsible for taxes, insurance, maintaining it, investing more money in a losing investment.
And then they have to find a local agent who will market and finally sell the house owned by the bank.
And since many foreclosures are upside down, meaning the homeowner owes more than the property is worth, banks are sitting on their holdings more than ever.
The latest trend for real estate investors is buying REOs in bulk.
Here’s why you should seriously consider buying REO in bulk
First, you get a big discount. As with anything else, the more you buy, the more you save. Since you are buying in bulk, you will get a better deal.
Banks are more motivated now than ever, and if you’re willing to take multiple properties from them, watch the price drop.
Remember, lenders don’t make money when they repossess and keep property.
They make money when they make good loans.
You can then do this without credit checks. Since you get deep discounts, you will be able to find investors to finance your purchase. Also, it is often possible to change these agreements with little or no cash out of pocket.
Finally, the best reason to invest in Bulk REO’s is for immediate income. Once you invest these deals, that’s an immediate profit. You don’t have to wait for the property to appreciate, you don’t have to wait to pay off a property for cash flow. When you do this the right way, you can quickly change it for a quick profit and since you are trading in bulk, the profits tend to be much higher.